How to Build a Successful Digital Transformation Strategy
Digital transformation is changing our world and how everything is done. It’s the process of using the newest digital technologies to create new or modify the existing business procedures and customer experiences to achieve better results.
It’s one of the most useful tools that any company can use to improve its status in the market and gain a competitive advantage. It’s also the highlight of the digital age in which we live, and any company that isn’t moving forward will be falling behind.
There are several tools that any company can use to successfully build a functioning digital transformation strategy. And at WeAR Studio, we’re fully aware of the latest digital transformation trends that can be used to help the company move forward and compete in the market. So keep on reading to learn more about transforming your business operations and taking your business to the next level.
What is a Digital Transformation Strategy?
In short, a digital transformation strategy is a plan used by a business to transform manual processes into a digital version that’s more accessible and successful. As a result, digital processes eventually improve the way products and services are delivered to customers.
Digital transformation is the future of any business regardless of its size and niche. Successful businesses are moving away from paper documentation to computerized spreadsheets and then to smart applications that allow them to record and manage data for various purposes.
With the use of the latest digital technology, any business is able to transcend into the future to create a new profile and improve customer experience.
The process can be even easier for small businesses because digital business transformation is more accessible when the company has just started. A small business will design different business operations from planning to working on new concepts, products, and services by relying on intelligent applications and new technologies like augmented and virtual realities.
But even for an established business, digital transformation is the only practical solution available to promote the company’s growth. It might be more challenging, but it’s still the only way a company can improve its status to compete in the market.
In the 21st century, keeping paper documents, books, and handwritten ledgers isn’t sustainable or even eco-friendly. Moreover, it’s not the smart way to improve the company’s position in a highly competitive market. There are also old ways of designing, marketing, and maintenance that are no longer suitable for our digital age.
This is why all businesses are eager to embark on the digital transformation journey to plan, build a digital setup, and implement digitally supported strategies that are flexible, agile, and ready to grow in the future.
Digital transformation is totally changing how work is done and even creating new classes of businesses and jobs that weren’t existing before using digital data and handling them in the smartest way possible while optimizing the company’s resources. It mainly adds a new value to every customer interaction to help the company achieve its primary goal: achieve more revenues and establish its status in the market.
Every business should think of a creative and effective way to leverage technology and offer what the customers need. Different niches and markets are full of examples of these pioneers who managed to offer a different experience to their customers, eventually achieving a high status among competitors.
What is a Digital Business?
A digital business is a smart, adaptable, and flexible business that is able to compete in the digital economy with all its challenges. Instead of modifying current business operations, a digital creates new ones with new jobs, responsibilities, and goals.
A digital business is a smart, adaptable, innovative organization that can compete in the digital economy. Digital businesses reinvent rather than enhance or improve whatever is already in existence, using new gear, hardware components, controllers, and software applications.
Compared to traditional businesses, a digital one might not be more imaginative or creative, but it’s definitely better at studying the latest trends to choose a solution that can help improve its market share and establish its status in the industry.
The core of a successful digital business is a highly competent leader who works with intelligent managers who do their homework to find new ways that can help the company thrive in the market. The leader and managers have accepted the responsibility to ditch the old business ways and inspire mid-level managers and employees to come with solutions that can help the company design and execute its digital transformation strategy.
What is the Main Purpose of Digital Transformation?
The main purpose of digital transformation is to improve customers’ experience. When this is done, the company will be able to increase its sales, improve its business operations, and eventually gain a competitive advantage, regardless of the size of the market and how competitive the niche is.
Digitalization or moving from analog to digital business operations started a long time ago when company managers and employees decided that the best way to record data isn’t through handwritten documents. These traditional ways have worked in the past but had several flaws.
For example, analog recording methods of data don’t allow for data sharing. Moreover, when data is shared across multiple users, there’s a big chance for errors and fraud.
This is why there was a great need to implement new digital tools to handle various business operations, starting from purchasing raw materials to recording data related to selling products to customers.
Computers were used in several business operations to transform all the paper documents into digital computer files. As a result, these files were easier to handle and share, and the company was able to record more data for better planning and follow-up procedures.
However, these digital files became less satisfactory to use in the new digital age after a while. As the internet prevailed, new technologies attracted the attention of business managers and employees.
This created the need for new digital trends to radically transform the world of business. New technologies like cloud computing, virtual reality, and augmented reality introduce new ways to do business operations to deliver faster and better results. In addition, data has become instantly accessible and easier to share among various platforms and to different stakeholders in real-time to facilitate making more informed decisions.
At the same time, these technologies will help companies find new ways to provide an immersive customer experience to gain a competitive advantage in any market, no matter how competitive it is.
This is why the digital transformation is currently implemented in every business operation, starting from research and development to procurement, designing prototypes, improving malfunctioning products, handling maintenance operations, and following up with customer complaints. The new business solutions allow different employees and managers to look up the relevant data and offer the right solution to handle any problem efficiently.
How Does Digital Transformation Impact Businesses?
Digitalizing the business has several advantages that manifest in a successful presence in the market and the ability to achieve more sales. Here are some of them.
- By changing how the sales process proceeds, the company is able to achieve more revenues. For example, using virtual reality to introduce new concepts and in the marketing process of e-commerce creates an immersive experience that convinces users of buying a new product or service by seeing exactly what they’re buying.
- Using cloud computing will create unified user data that can be used in various ways. For example, the same type of data is shared across multiple platforms in real-time, so the company’s employees are able to respond to customers’ complaints and requests promptly. It also allows the company to offer personalized solutions based on individual customers’ needs.
- Digital business operations optimize the workflow by creating more opportunities for collaboration between different departments.
- Virtual and augmented realities improve the customer experience by offering personalized solutions and creating compelling and immersive experiences that convince customers to trust the brand, eventually increasing brand loyalty.
- By offering a professional level of digitalization, the company can decrease the number of returned products. For instance, virtual and augmented reality applications show customers exactly what they’re buying, so they’ll be paying for what they want and will feel less hesitant about their purchases.
- Changing analog business operations to the digital version will reduce operational costs. Virtual training allows for remotely connecting the training experts and instructors with the employees, allowing the company to run multiple training programs with no overhead costs. Virtual and augmented realities can also be used for repair and maintenance in hazardous and remote environments.
How Can a Business Build a Digital Transformation Strategy?
The definition of a successful strategy is a set of guidelines or rules that identify a problem, determine the best solution to deal with it, and set coherent actions to implement these solutions.
The main purpose of setting a business plan is to establish a set of measures that would differentiate a company or organization from its competitors to leverage business operations and lead to exceptional and sustainable profits.
A good digital transformation strategy is made of three components; diagnosis, a guiding policy, and a coherent action plan that can be used in various situations. When one of these components is missing and the digital transformation strategy isn’t successful, the company can face several challenges.
- The company will be unable to fulfill customer orders and keep up with their expectations.
- Falling behind when it comes to offering new technologies that allow the company to gain a competitive advantage.
- The company will fail to optimize its resources.
- The company will be unable to introduce new products and services that appeal to its customers.
- Data won’t be shared in real-time with various stakeholders.
- The company won’t be able to introduce new ways to handle several business operations like customer support, maintenance, and research and development, nor connect these operations with one another.
In some cases, a business might start digitizing isolated parts instead of totally transforming the way business is done. In this case, there will be a huge waste of resources since people will have access to the technology without being able to use it properly. So, data might be present but not fully utilized or shared with the right people at the right time.
This is why digital transformation should be a macro-level process that overlooks the big picture, in addition to micro-level processes that focus on the details. Every part of the business should be digitized, and people should be able to work with the available technology to boost the company’s status in the market.
The main purpose of a good digital transformation strategy leads to enhanced operational efficiency, while a bad one leads to frustration of customers and wasted resources. But to achieve the first result, the company doesn’t need to digitalize analog business processes but to redesign new processes and use them to achieve the company’s goals.
What Are the Steps of Building a Digital Transformation Strategy?
With the flourishing digital economy, suppliers, raw materials, products, customers, and everything else are currently influenced by the new digital changes. This is why a successful company should have a digital vision and the knowledge to implement it. Here are the basic steps that a company should follow to design and implement its new digital transformation strategy.
1. Start by defining the purpose of building a digital transformation strategy. What is the main goal that you’re trying to achieve? Is it introducing virtual reality to the research department to save money on fixing prototypes, or are you trying to share data more efficiently with stakeholders? Depending on your purpose, you’ll be able to design several solutions to follow, so you can achieve your company’s goals. 2. Create a brand’s story. Think of how new technologies will change how your business is viewed in the market and the kind of story you’re trying to tell. A compelling story that defines the purpose of your business and what you’re trying to achieve will attract customers because they can relate to your brand. 3. Define the new goals for your company. These goals should be measurable and achievable within the time limit set by the management. The key is to make sure that your goals are smart; specific, measurable, attainable, relevant, and time-bound, as they will help you assess the success of your digital strategy transformation. 4. Develop the proper persona for your audience as you introduce new technologies. Not only will this help you attract the right customers, but it will also allow you to offer them the kind of technologies they need. 5. Focus on a potent and well-studied digital transformation roadmap. This will define the right steps that you need to follow to make sure that the process is done the way it should be done. In addition, this roadmap will help you define the kind of interaction that you have with your old and potential customers to introduce the technologies and solutions that they’re expecting. 6. Think of the right key channels that will connect you to your target audience. The idea isn’t to waste your resources by being in every medium and on every platform, as this makes you lose sight of what really matters. Instead, you need to focus on the key channels where your audience really is. For example, if you’re using an augmented reality app to introduce a new product, you can market it on Instagram or Snapchat, where users are more likely to use photo filters. 7. Create a relevant content strategy based on what your audience needs. It’s all about incorporating new technology into valuable content that your potential audience will appreciate and relate to. 8. Stick to a content calendar that focuses on various channels where new content is always shared to show customers that you’re always presenting and offering something new. 9. Plan your resources while introducing new technology. This is crucial whether you’re running an old business or starting a new one. The transformation process can affect the allocation of the old resources, but it will eventually lead to an optimized way of using all the company’s tangible and intangible resources to achieve its goals. 10. Use analytical tools to measure the efficiency of your plan. All digital platforms have some kind of tool to measure the success of the tools you’re using. You might need to advertise your new cloud system or use more social media interaction for marketing your virtual reality warehousing plan.
What Are the Best Examples of Using Digital Transformation Strategy?
The market is full of success stories that show businesses have shifted from the traditional analog ways to the new digital ones. From designing products to virtually holding meetings with suppliers, fixing prototypes, and assessing the functionality of products and services before offering them to customers, new digital technologies have transformed the way various organizations do business in different sectors. Here are some of the most successful examples of digital transformation.
- IKEA uses an augmented reality application to introduce products and show customers exactly what they’re buying. This application allows users to switch between different colors, so the customers are more convinced of what they’re buying, which eventually reduces the level of returns.
- The Commercial Bank of Kuwait boosted its online banking with video chats for an advanced digital experience that enhances communication and increases online engagement.
- Kentucky elevated its training programs to prepare new employees for their new tasks by incorporating a virtual reality game into their training programs. Augmented reality can show new employees how to act and react in several situations by creating a stress-free and fun setting.
- Domino’s Pizza implemented artificial intelligence in its chatting system with customers. The automated chatbot offers a 24X7 level of customer satisfaction where consumers are constantly receiving the assistance they need.
- The Royal College of Surgeons of England is currently using virtual training to boost the training and e-learning program. As a result, surgeons are able to learn better and in a stress-free environment without subjecting anyone to danger using a computer-generated reality.
- Sephora uses an augmented reality application to allow users to test new products before buying them. This concept will reduce the need for returns because people know exactly what they’re buying and how it will suit them. It’s also a great way of convincing customers to try and buy new products.
Digitalize Your Business Today
It’s about time that you take your business to the next level, and designing and implementing a new digital transformation strategy is the only way to help your business establish its status in the market.
At WeAR Studio, our experts will study your company’s situation and design an individualized solution that helps your employees and managers work more smoothly to achieve the company’s goals. So contact us today, and propel your business to the future.