Digital Transformation and You
What is Digital Transformation?
While these two words combined can elicit a sense of intimidation within the non-marketing community, it can be more easily digested when defined individually. Digital refers to any electronic technology that generates, stores and processes data while transformation is a complete change in the nature or appearance of an entity. Simply put digital transformation means using technology to increase business performance.
What does Digital Transformation Look Like?
There are many everyday examples of digital transformation from simple solutions such as opening a social media page to give customers more info about your product to the more complex integration of an online payment gateway on your website to process transactions seamlessly. The main objective of any digital transformation effort is to increase your business’s competitiveness.
Making the Case for a Digital Transformation
For us to truly appreciate what makes Digital Transformation so appealing in today’s markets we must first understand the competitive forces at play. Amongst the many factors that influence the competitive position of a company in any industry or market, are three major elements;
i. bargaining power of the buyers and suppliers
ii. threat of new entrants
iii. rivalry among existing companies
The first two are out of your control, but the third depends largely on your business’s reaction to its competition. With increasingly cut throat opposition your business has to define its value proposition, by fulfilling orders quicker, providing easier support, making transactions more seamless you carve an identity within the mind of your customers. And because customers are getting smarter you are either gaining relevance or bleeding patronage, by the time most businesses realize it is already too late.
Possibly the most important reason why Digital transformation is so relevant is data. The most potent weapon in your arsenal is the information centered around each individual’s problem, because you are going to be the hero that sells them that solution. Not all heroes wear capes, some of them wear suits. However, to become their hero you first have to save them from their uniquely intimate challenge. This means getting to know them on a deeper level, collect data every chance you get and start building an outline for areas of friction that cause distress, little by little, a little becomes a lot. You collect this valuable data through forms embedded on your website’s landing page, forms placed in email newsletters, polls placed on social media ads, online surveys, (You get the idea). Now that you’ve gained so much insight you can swoop in to save the day by offering solutions to those pesky problems we talked about earlier. These digital tools make it possible by equipping you with the ability to unobtrusively collect valuable information in bits and pieces. In fact, the entire process can be automated leaving you with valuable time to go design your superhero outfit or other such important matters. Digital transformation is one of those rare win win situations that allows you as a business owner better serve your customers.
So again, why is Digital Transformation so relevant, because it gives you an advantage over your competition. While the other guy is worrying about printing flyers with a conversion ratio of 3:30000, and the other other guy is using radio ads with a conversion ratio of 3:3000, you’re being smart by using Ad words with a targeted conversion ratio of 3:300. And due to the rapid pace of digital disruption, you’re also prepared because you are open to the possibility that there might be something just around the corner that can give you a conversion ratio of 3:30. You recognize the significance of these tools and you understand how to use them to improve your business’s performance and as a result you one-up the competition by saving the day for your customers.
Barriers to Digital Transformation
We as human beings like the familiar, it gives us a sense of order and allows us to plan for the future. Change however, can be intimidating especially in circumstances where there is little chance to circumvent it. This has led to Digital Transformation being portrayed as a sort of Boogey man to the less IT savvy corporate executives. A practical way of dealing with this barrier is to keep an open mind. Change is a necessary part of evolution, as it brings about a more efficient way to relate with and cater to the ever changing demands of customers. Failure to adapt or a sluggish conformity to ignore an all too important transition such as this can also lead to another kind of change. The permanent one.
Digital Transformation can also be ambiguous due to the flurry of “experts” who choose to use it in scenarios that have little to no correlation with the subject matter. While it is a broad topic covering various areas, its theme has always been the optimization of business processes.
The Changing Landscape of Business
Out of over 26 factors, executives of global businesses concluded that adaptability was the most essential element for survival according to a survey carried out by the Harvard Business Review. If the ability to react to the marketplace is so important, then why do businesses refuse to adapt to the very factors that determine its survival. History is littered with accounts of brands that tanked because they failed to innovate or worse, completely ignored it. Digital Transformation is first and foremost a business transformation that can only achieve success when you look at available technologies and consider how adapting your business to them can give your customers a better experience.
The successful transition of any company looking to adopt digital processes needs the buy-in of company employees and management. All stakeholders need to submit to the changing times as well leverage technology to transform or refine their business models. They need to be flexible and open minded to survive in the new digital age. Innovation has always been closely followed by disruption, some companies are using these opportunities to carve themselves a larger share of the market, while others blame the new rules of the digital era for lost customers and declining sales. In this age of capitalism, the market is the ultimate equalizer, free of any bias or prejudice. Only It will decide the fate of companies mighty and small. Sink or swim, the choice belongs to you.
