3P’s Of Digital Transformation
Is your Digital Transformation strategy on track? If not, why?
The Digital Transformation is really indispensable.
All the enterprises’ ability to deliver (and compete) on customer experience is attached. If Executives understand digital’s potential to transform how businesses create and deliver customer value, more than 4 out of 5 companies (84%) do not have the required skills or talent to carry out this transformation and thus only 19% of leaders are confident they have the right technology in place to execute their digital strategy.
46% of Executives estimated that more than half of their sales will rely on digital within five years but only 21% feel they have the right team to define their digital strategy. Thus just 14% believe they have the correct processes set up to implement it.
Clearly, many companies are failing to face the digital transformation importance. How can they course-correct? By simply following the “three P’s”:
Successful digital transformation is really all about people.
Before any organization can digitize, the people have has to transform. But change is very hard. People often need to go through a personal risk assessment as they commit to helping the change of the organization. They need to know the basic changes that will affect. They worry whether they’ll be able to perform or not and some will wonder if they should start looking for a different employer.
So to start, one needs to get a clear vision on the role of the peoples that will play in the process. Who should be involved? Who’s in charge? Who owns the transformation? Who will work better together to make digital a new way of life?
Thus, 43% of firms with a mature digital strategy see competing departments wanting to own digital as the most significant barrier to effective digital transformation in their organization.
The question arises does the Company have the right people with the right skill sets? Will you need to outsource? Can you build a transformation engine fast enough or would bring in outside experts for speeding things up?
First, confirm these aspects first and then clearly define roles. Without the right people and the right alignment, the digital transformation will remain just one an isolated initiative.
Nowadays, products are really about product plus experience which naturally leads to these questions: What impact will digital transformation have on your product and the experience around? How is the product going to evolve because of this and most importantly is the user experience?
When the people factor is right, the next focus should be on technology which requires support on the kind of digital transformation that improves customer experience. While 89% of enterprises are investing in the tools and technology to improve their customer experience initiatives while just a few are relying on real-time data to inform decisions. At present, the customers expect a hyper-personalized experience and to truly provide that you require a 360-degree view of the customer.
Comprehensive customer experience data platform offers a secure, singular view of the customer in real time. It provides users with insights into every customer interaction across every touch point so customer experiences can be truly personalized. This is a crucial and most important aspect of digital transformation.
Thus, how will one measure success? Digital transformation requires significant investment in people, processes and technology then how will one measure the return? Is revenue the only measure? Or might decrease the cost of customer acquisition, fulfillment and store investments with more e-commerce gauge the value of digital transformation to the enterprise? One should also note that the most important performance metric is the impact on the customer experience that which translates into increased retention and revenue. Brand value and Net Promoter Score also also be non-revenue and non-cost vital metrics to track performance.
The definite path is to have IT drive digital transformation in cooperation with marketing keeping in mind that the impact on customer experience should drive decisions around the process.
Digital transformation must happen all over the enterprise but it doesn’t have to happen at the same time. Start with from where it will make the greatest impact coupled with a high probability of success (and also considering the lowest risk to negatively affecting customer experience). Should it be internal or external? And in which areas of the business will undergo transformation first?
Remember, where one starts will have a ripple effect on the entire enterprise and a correlating impact on the customer experiences too. Fast small successes are infinitely better than a huge strategy with a high degree of risk factor that takes forever to implement. The process one uses to drive digital transformation must also be carefully balanced with the maturity of the technologies one is implementing about the ability of the people to implement them and the patience and tolerance levels of the customers to experience it. The process may not be IT oriented and marketing first, it might be IT and customer service involved with marketing. It might be IT and logistics and fulfillment. Customize such a process that truly makes sense for an enterprise. It just works for you and your definite needs and goals.
Keep Moving Forward
Digital potentialities such as e-commerce, websites, mobile apps, email marketing and social media will fall short when the enterprise is not able to hyper-personalize the customer experiences in meeting the customer at the moment as when and where they select to engage. Just, implement the 3P’s of Digital Transformation and gradually it will successfully deliver the enterprise into the Digital Age and position the business at a touch point to reach the peak and eventually compete on customer experience.