A digital transformation strategy is key for entrepreneurs and business owners who want to succeed. Here’s what you should know.
Digital transformation is rapidly changing the world and the way we operate in it. Technology that used to be a choice for businesses and entrepreneurs is now a necessity. Digital strategy is at the top of every business leader’s mind, and it’s ingrained in the way most businesses operate. Businesses have adopted technology from e-commerce platforms, communication tools and planning software. To keep pace with the evolving marketplace, companies are looking at digital transformation to help them achieve their business goals.
Digital transformation continues to be a priority in business. 47% of CEOs are challenged by their boards to move forward in their digital strategy. 56% of CEOs indicate improved profits as a result of digital changes.
New technology is disrupting the way we all do business—it’s a good thing. Digital transformation is about developing and implementing a modern digital strategy. It’s not about stand-alone technology. It’s about incorporating a robust digital strategy throughout all processes in an organization. Companies that do this, enable positive employee outcomes. They receive data insights, experience seamless partner collaboration, and deliver desirable customer experiences.
Business owners and entrepreneurs want to know what digital transformation is, and how it’s different from using stand-alone technology as part of their workflow. We’ve created this article to help you learn what it is, and why a digital transformation strategy is important for your business.
What is Digital Transformation?
Digital transformation is about changing the way a business operates. Digital transformation is a way a company can adapt their current practices with a wide array of technical solutions. Digital transformation optimizes all areas of the business, from the tools the workforce uses to company culture and customer experience. The process requires a review of the current operating process, a strategy, and action towards change.
There’s a lot of language when it comes to business technology that seems similar, but they have different meanings. It helps to get familiar with the vocabulary.
Here are some key words and phrases you’ll want to know:
Digitization: Converting physical documents and procedures to digital. (Analog to digital).
Digitalization: Utilizing digital information and practices for efficiency.
Digital transformation: Optimizing all areas of the business with digital solutions such as software and technology.
Digital transformation strategy: The step-by-step approach to digital transformation.
Why Digital Transformation, Why Now?
Over the last couple of years, businesses were shown how important their digital strategies are. It was a bit of a crash course for many. There was a swift migration to digitalization as a result of the pandemic. All of a sudden, everything was contactless and businesses without notice shifted towards digital interfaces and technology. Ready or not, business was being done online.
In 2023, every business in some way incorporates technology in their day-to-day operations, they’ve done this for centuries one could argue. What is new is that some companies have transformed their business using technology. They know that a digital transformation strategy drives their business growth in new and existing markets.
As a result of digital transformation across all industries, technology has become the core of modern business strategy. By implementing a digital transformation strategy, operating expenses and inefficiencies can be reduced. Digital transformation enables businesses to compete in a challenging marketplace. Competition is a driving force behind transformation at a large scale.
Why is digital transformation leading the way in 2023?
With the pandemic behind us, businesses face new challenges. Looming recession, supply chain issues, and inflation are among some of the troubles. Regardless of what they’re up against, business leaders know they still have strategic growth to achieve, and now is the time to focus on a digital transformation strategy.
According to recent Gartner insights, by 2027, more than 50% of enterprises will use industry cloud platforms to accelerate their business initiatives.
5 Reasons a Digital Transformation Strategy is Key for Entrepreneurs
Digital transformation strategy for entrepreneurs is key, here are 5 reasons why.
1.) The world wants on-demand service.
Customer experience is a driving force behind digital transformation. The pace of innovative and disruptive tech that we’ve seen in recent years continues. Now, it’s normalized for individuals to adapt to new technology and processes. This can be seen in the way consumers have adopted AI voice applications/ chatbots and more. In business, it’s not a question of if you use a CRM, it’s which one do you use.
Entrepreneurs and businesses may jump at the idea of implementing a new technology. Without a proper digital strategy behind the idea, new tech may backfire. Customers who are left confused and uncertain jump to the nearest competitor.
People expect businesses to adapt to the latest and greatest technology. The desire may be to please customers, but getting on board with new technology too fast has its own risks. What’s more effective is to take a holistic approach. A digital transformation strategy considers all the moving parts of a business and determines what technology will please the customer and work well across the entire plan.
2.) The workforce is changing.
Employees have leapt forward when it comes to expectations. They want access to the best tools that support them to do their job well. A solid digital transformation strategy leads teams forward with success.
Digital transformation improves employee happiness, and company culture. The right software and technology can help an employee expand their personal and professional success. When provided with the proper tools, an employee will be more efficient, freeing time to work on higher level business opportunities. This creates overall job satisfaction.
Employee engagement is crucial to overall business outcomes. A highly engaged workforce creates better customer engagement, higher productivity, better retention, fewer accidents, and 21% higher profitability.
One example to consider is how businesses switched to a remote workforce over the past few years. They incorporated productivity tools and even started to automate processes. As a result a new kind of employee emerged.
3.) Cyber security
With evolving technology and full-spectrum digital transformation strategies, the need to focus on cyber security has never been greater. Companies take rigorous measures when it comes to data compliance. It’s a huge challenge for even the most talented IT leaders. As company networks are pushed to their limits, employees may cut corners in order to get things done faster.
Businesses must create and adhere to stringent security protocols. A successful digital transformation strategy is critical because it supports consistent security practices companywide. It means that networks, software, and applications, as well as all the data within are taken into consideration.
4.) Better working relationships.
Digital transformation includes changing the working relationships between businesses and their suppliers, and customers. Systems can be streamlined to be more efficient, save time, remove human errors, and to collaborate effortlessly.
Technology changes the way businesses collaborate with each other. Exactly how is unique to the individual goals of each business. There is no one size fits all. This is why developing a thorough and unique digital transformation strategy is important.
5.) Big data, big results.
Analytical data helps businesses reach their goals. A successful digital transformation strategy will centre on data. The exact analytical tools will vary. They can be integrated across business operations to work behind the scenes and support the bigger picture.
Technology helps businesses and entrepreneurs gain access to insights that support business growth. A digital transformation strategy will consider the full cycle of data. This includes the moment it comes in (top of marketing funnel) through the entire business process, storage, maintenance, and analytics. As technology continues to advance businesses may even utilize artificial intelligence (AI) and computing technologies to process and analyze data.
Digital Transformation Strategy:
It’s clear that technology is here to stay. It’s constantly changing the way we live, work and play. Businesses who lead in the future will all be driven by technology. Businesses now are in the unique position to adapt and make effective changes that advance them forward.
Each business has an individual digital transformation strategy that is right for them. There aren’t two that would look identical. Those that integrate digital technology across their entire enterprise in a cohesive and holistic manner will see the best results.
Digital transformation effectively changes how you operate your business, and how you interact and deliver results to your customers. This is where all businesses are going. Regardless of size or industry. Large enterprises, small businesses, and entrepreneurs will all benefit from a digital transformation strategy.
Businesses should start by looking at the current state of business operations, review, analyze and then make a plan for action. It’s important to understand and align with the power of technology that suits your future business outcomes.
