Yet another expression of the times, digital transformation strategy, in spite of the popularity that this concept is having, you shouldn’t see it as a fad or a marketing trick to sell applications and courses.
The reality is that in a world where more and more people begin their lives connected, thinking about your business in purely physical terms is already totally impossible, and it’s been some time. What about the future?
Digital transformation strategy has frightened some entrepreneurs and managers, who try to understand what it is and imagine that its implementation is highly complex.
In fact, the tools and methodologies exist, just research, create a Benchmark, analyze your company characteristics and set priorities.
An Action plan like any other, but with quite important strategic consequences.
To help demystify this concept and show that much of what you must do, you’ve most likely already started in an unorganized way in your business, we have described in this post some fundamental concepts of digital transformation. It’s only the beginning of the discussion on this topic, which we intend to extend in a series of posts.
The 3 pillars of digital transformation strategy
The first step in understanding which areas digital transformation strategy will impact your business is to understand on what basis it changes the way you operate the business and interact with your audience, your collaborators, and partners.
Thus, 3 pillars stand out:
1- Customer Experience Digital Transformation
An example that has already become classic is the customer who questions the seller within a physical store. For example, if the seller can discount certain merchandise because the customer has just seen on the internet that the competing store sells the products cheaper.
Thus, digital transformation affects sales channels, ways to advertise products or services and attract and engage consumers, points of contact, language and even prices and product and service attributes. As the public, increasingly, becomes immersed in the virtual universe and feeling very happy inside of it.
2- Operational Process Transformation
This is another point that many forget. Digital transformation is not just about providing a better customer experience through virtual shopping channels and Agile customer service which is integrated with social networks.
Process modeling must allow increased value delivery at each stage of the chain, and this can be achieved through better information flow, collaboration, and teamwork, elements in which digital transformation can assist in a very practical and assertive way.
3- Business Model Transformation
The total of the two pillars above may help you with business model transformation. However, not only in the sense of changing the very way in which your organization produces and delivers value to the market but also in what the competition can do in that sense, using digital transformation for this.
Your company may even want to generate so-called “Disruptive Innovation“, but in addition, it must be attentive to the steps of competition, mainly indirect, and defend itself against threats.
6 digital transformation agents
Among the most used technologies in digital transformation, we can mention:
1- Social Media
The use of social media in a much more inclusive way than merely delivering content relevant to your audience. For example, monitoring customer interactions to detect trends, desires and even respond to crises more quickly.
2- Cloud Computing
Already widely adopted by most companies and the general public. People mostly use it with SaaS applications (software sold as pay-as-you-go services). This technology is essential to promote more integration and team work.
3- Remote access and mobility
Wherever a collaborator, customer, vendor or partner is, they can interact with your company via a mobile device and the internet.
This opens up a huge range of possibilities that your business needs to explore.
4- Big Data
Perhaps the most complex digital transformation elements, you should not overlook it. There are already Big Data solutions with Freemium and paid models on the market.
5- Internet of Things
Also known as IoT (Internet of Things), it comprises a number of devices that have embedded technology, such as sensors, buttons, etc. that are capable of connecting in the cloud and transmitting data and events.
Here’s an example of IoT:
6- Artificial Intelligence
Artificial Intelligence is the ability of a machine or software to develop human-like thinking, including the ability to set standards, experiment, perceive, and make decisions intelligently.
Self-guided cars, cognitive computing, chatbots and many others are examples of actual application of this technology. See in the series below examples of artificial intelligence use:
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Therefore, digital transformation can begin with continuous process improvement, aided by cloud-accessible tools. See a testimony from André Antivilo, who has used HEFLO, an intuitive and cloud-based Process modeling tool, with surprising results:
“HEFLO allowed me to learn about process management in a general way, through a free and modern platform. With an open mind for innovation and customer feedback, the team meets demands and gives constant updates. An Excellent online tool “
In 2016, the famous cosmetics brand L’oréal grew its online sales by no less than 33%. This, after implementing a series of efforts to qualify and increase the knowledge of its more than 14,000 employees on its digital transformation strategy.
Yes, there was also a strong media investment in digital channels. But according to the Harvard Business Review, the motive behind this success is due more to the involvement of employees and their empowerment in digital transformation strategies than to the greater exposure of the brand on the internet.
For the authors of the article, the success of a digital transformation strategy is not in technology, but in the way companies communicate, organize and empower their collaborators.
5 ways to empower your employees through Digital Transformation
There is now a consensus in the market that there is no way to build a successful business if it doesn’t embrace a digital transformation strategy.
In this sense, many organizations are investing heavily in technology. But is this the way?
It takes more than that. Your company must make its employees able to take advantage of the best of digital transformation. This will benefit the company’s customers, who are already immersed in the digital environment.
1- Commitment of leaders
The first step should be to make it clear to the entire organization that digital transformation strategies are a decision of the company’s senior management with long-term goals.
This should be demonstrated through firm actions, plans and the creation of strategic groups in digital transformation. This shows the commitment of the organization to this end.
2- Bring your employees closer to consumers
More and more companies are trying to sell directly to their end customers through the internet.
But companies accustomed to dealing with distributors/retailers often don’t thoroughly know the buying habits and behaviors of their consumers.
Therefore, a digital transformation strategy in this sense can’t sum up the creation of digital sales channels.
You must promote the use of new BI technologies, analytics, and the monitoring of user behavior, whether in sales channels, social media, or other online contact points. This will help you to get the information you need about your end-user’s wants.
3- Provide employees with the means to be more agile
Nowadays, with the rapid evolution of both technology and consumer behavior, organizational change processes need to keep pace.
And the easiest way to achieve this is with the automation of processes and the creation of dashboards that allow an agile and real-time monitoring of sales, access to blogs and social networks, opening of e-mails, consumer comments and other indicators.
The culture of quarterly or even monthly meetings to evaluate performance and define new strategies no longer makes sense. Decision making should be much more agile.
See more about this: What is a dashboard? Everything you need to know in the blink of an eye
4- Don’t forget the “employee experience”
Some companies are going beyond the concept of customer experience and introducing the design of the “employee experience”.
The goal is to identify the motivations, expectations, and behaviors of employees to attract and retain talent.
Tools such as maps of the daily journey, creation of personas, and research data, of course, allow companies to positively transform the experience of employees in the work environment.
5- Long-term learning
Finally, without training and learning, there’s no way to help your employees face the challenges of digital transformation. And this should be done in innovative ways that fit the profiles of new employees, such as the use of gamification, for example.
With HEFLO, cloud-based process automation and modeling software, you can create dashboards and track your processes with all the agility that your digital transformation strategy requires.