What is digital transformation?
Since digital transformation represents differently for every organisation, it can be difficult to define one concept that applies to all. However, in general terms, digital transformation is characterised as the incorporation of digital technologies into all areas of business, resulting in fundamental changes regarding how companies function and deliver value to customers.
Beyond that, it’s a cultural transition that enables companies to constantly experiment on a variety of occasions, and be comfortable with failure. This also means moving away from the long-standing business processes that businesses have developed in favour of relatively new methods still being established.
Challenges facing digital transformation
One of the biggest issues organisations today are dealing with is digital transformation. The commercialisation of mobile computing has made the fundamental building blocks smaller, cheaper, and more capable than ever. One of the most important aspects of digital transformation is the ability to develop and implement viable business models.
Businesses are under pressure not only to modify their current business models, but also to run a portfolio of various business models to cope with customers who expect versatility and customisation of goods and services.
Many businesses are also reluctant to accept new opportunities and are faced with a new set of challenges in coping with this dynamic environment, characterised by both rapid technological growth and slower organisational processes.
COVID-19 has pushed the digital transformation agenda
Digital technology is at the forefront of today’s discussion on economic growth due to its widespread use during the COVID-19 outbreak. Although there is no question the pandemic is amplifying the introduction of emerging technology, technological developments have already changed the world over the last two decades, from living conditions to the very essence of jobs.
According to a research by Twilio, COVID-19 has driven the digital transformation of Australian industry by an average of six years. The report highlights that because of the pandemic, businesses now see digital communications as a higher, more urgent priority — and are now willing to significantly invest more.
Recommendations for businesses going into 2021
Digital transformation also forces companies out of their comfort zone by deliberating long-term strategic decisions about an unforeseeable future. Coraggio presents the following recommendations for businesses and firms developing digital transformation.
1. Start small and assess your business strategy
Digital transformation should not be implemented in a chaotic manner, impacting various business sectors, or adopting mainstream practises. It needs an individual approach to your company, an in-depth review of your company and a well-defined plan. This enable to unlock all the benefits of digital transformation for your company. Before beginning a digital transformation plan, analyse the current state of your market from a digital perspective, clearly identify the desired business results, and perform a gap analysis. This investigation aims to match what has already been done and what the company still requires to function successfully in the digital landscape.
2. Own the change and maintain an overall contribution in the company
The transition may be difficult, and the internal resistance of employees may be faced. We are not able to accept major changes because we have already followed certain trends, and it may be challenging to get on new rails. It is recommended to ensure an efficient adoption of technology transitions by employees and senior management to ensure a smooth and natural transition to digital culture.You should identify digital champions within your organisation and bring them early to execute it more effectively. Motivate them to catalyse a culture of change and inspire other workers to start pursuing the possibilities for digitisation by sharing positive results and success stories.
3. Find a trustworthy digital transformation partner
Many start-ups, SMBs, and even companies can find it difficult to develop a viable digital transformation strategy. That is why it is advisable to look for an accomplished technology partner who can equip your business with the new technical know-how and lead how to effectively execute a digital strategy. When selecting a company partner, it is important to pay special attention if this team has experience working in your field and in similar ecosystems. That would automatically facilitate that this company already has a strong vision about how to bring about a digital transition for companies like yours.
Incorporating digital transformation involves businesses to define which innovations are important and how they will be incorporated in their market offerings. As emerging technology deepens organisational processes and company strategies will eventually be influenced as companies reassess their business views as well as their relationships with partners, stakeholders, and consumers.
What is Coraggio?
Coraggio brings together Australian private business owners, leaders and entrepreneurs in a secure and confidential board room environment (online and face-to-face) to challenge new ideas, discover next steps and share concerns with neutral parties who are committed and accountable to one another.
To learn more about how we can support you and your business, attend one of our complimentary weekly information sessions in either Sydney, Brisbane, Melbourne, or the Gold Coast.