On several key issues of digital transformation

Nowadays, most enterprises are scrambling to carry out digital transformation , But not all enterprises have successfully achieved their goals . It is difficult to point out exactly “ Digital transformation ” First use of the word , But it's at least 2012 In . Of course , The process of Digitalization , Or the process of migrating to computer technology , since 20 century 60 It has been going on since the s .

in fact , In the past ten years , Industry authorities have been telling enterprises to accept digital transformation , Many of these enterprises have also listened to this call . Cloud computing 、 Emerging technologies such as data analysis and artificial intelligence have promoted the development of digital transformation .

today ,“ Digital transformation ” The word is almost everywhere . It is hard to find a company that has not undertaken at least one digital transformation project . stay Gartner On 2021 In a survey conducted in , Only 3% The head of data and analysis said , They are not involved in digital transformation projects .

The company has good reasons to carry out digital transformation projects . Several studies have found that , Digital transformation is associated with better business outcomes . for example , A Deloitte study found that ,“ Higher digital maturity is associated with better financial performance . In this year's sample , Companies with higher maturity are about three times more likely to report that their annual net income growth and net profit margin are significantly higher than the industry average —— This model is applicable to all industries .”

Although to 2019 year , Many companies are already in the process of digital transformation , But coronavirus seems to have accelerated this process .BDO Digital On 2021 A study conducted in found that ,43% Of the surveyed organizations are accelerating their existing plans to deal with the epidemic ,51% Our organization is adding new digital projects . Looking forward to the future ,90% Our mid market organization plans to be in 2021 Keep or increase the digital expenditure .

Again , When Boston Consulting Group (Boston Consulting Group) Yes 5000 Managers and employees were surveyed , When inquiring about the impact of the epidemic on their business , exceed 80% Person representation , Their digital transformation efforts are helping them cope with the economic slowdown .

But what is the digital transformation ? If you can experience the benefits of this trend , What should organizations do ?

One   What is digital transformation

You will get different definitions of digital transformation , It depends on who you're asking . Almost everyone changed their definition a little , To benefit from it . for example , Sales of customer relationship management software Salesforce I will tell you. :“ Digital transformation begins with customers , It also ends with customers .”

Red hat, which sells software and services in all business areas, says :

Digital transformation is the integration of digital technology into all areas of the business , Fundamentally change the way you operate and how you deliver value to your customers . This is also a cultural change , Enterprises are required to constantly challenge the current situation , Keep trying , Accept failure calmly .

An analytical company that makes money by selling extensive and complex subject information Gartner, It makes the digital transformation look both broad and complex :

Digital transformation can mean anything , from IT modernization ( for example , Cloud computing ), To digital optimization , To the invention of new digital business models . This word is widely used in public sector organizations , It refers to some modest measures , Such as putting services online or modernizing traditions .

eWeek The definition of digital transformation is broader :“ Digital transformation refers to the adoption of digital technologies that can change the business .”

It's crucial , Digital transformation involves more than just deploying new technologies . It's not just about improving efficiency or productivity .

Digital transformation is to find new markets and new business methods , It's about interacting with customers in new and different ways . It involves using the power of emerging technologies to do things that have never been done before . It usually brings new sources of income , Increase profit , Enhance competitiveness , And achieve other business goals . It has a high risk . But it also brings important opportunities .

Digital transformation represents the intersection of many evolving fields, from cloud computing to data analysis to social media .

Two   Examples of digital transformation

Well known companies that openly discuss digital transformation include general electric (GE)、 Nike (Nike)、 Home Depot (Home Depot)、 Wal-Mart (Walmart)、 Taghit (Target)、 John Deere (John Deere) etc. . But because every organization is unique , So every company trying to make a digital transformation looks different . And organizations often deploy more than one transformation technology at a time .

That being the case , Many organizations are attracted by similar types of technologies . Here are some popular types of digital transformation projects :

From major physical sales to e-commerce .

Migrate from local data center to cloud computing .

Using big data analysis , Increase of efficiency , Optimize business processes .

Applying artificial intelligence and machine learning to business analysis , To reveal new insights .

Developing mobile applications , Let customers interact with the company through their mobile phones .

Connect the IOT sensor 、 Digital twins 、 New technologies such as blockchain are directly integrated into products .

Discard direct mail 、 Traditional advertising methods such as television and newspapers , Switch to digital marketing and social media .

Using virtual reality and augmented reality technology to improve product design and service process .

Allow employees to work remotely , To improve the employee experience .

today , Most digital transformation efforts include these types of technologies . They also often need to change their business strategy .

3、 ... and   How to build a digital transformation strategy

The most successful digital transformations are those that are well planned 、 Transformation with well executed strategy . How do you create a successful strategy ? Here are some suggestions :

01  Set business goals

Because other people are working on digital transformation projects, they decide to start a digital transformation project , This is absolutely a disaster . Before we start , Make sure everyone on the team understands why you are doing this . You need to agree on your current situation , Have a clear vision of where you want to go . Usually , The most effective digital transformation goals are accompanied by key performance indicators (kpi), These metrics allow you to track progress toward your goals .

02  Hire experts

It is very likely that no one in your current team has successfully made a digital transformation . If this is your case , You may need to consider asking for help . This can take the form of hiring a full-time employee with digital transformation experience , Or you need to hire an external consulting company . Some companies also employ IT、 Other key personnel in marketing or other fields , They have experience or expertise in the transformation you want to make .

03  Build your strengths

Abandon what you are doing now , Start from scratch , This is very tempting , But this is usually wrong . Think about what you have done well . Do you have loyal customers ? What does your brand stand for ? When you make a digital transformation , You need to make sure that you haven't done anything to undermine the success you have achieved . Digital transformation projects that meet their goals often look like a natural extension of the company's previous efforts in the digital field .

04  Put yourself in the customer's shoes

Digital transformation framework ( Details are provided below ) A common theme of is to emphasize the customer experience . Digital transformation will change the way your customers interact with your organization . You need to make sure that this new experience is positive , And strengthen the brand image you want .

05  Establish new procedures and policies

If no one uses new technology , It's totally useless . Before you launch a new tool or application , Please think carefully about how you want your employees to use it . If you don't clearly define the program , And put in place some enforcement mechanisms to ensure that people abide by them , Your employees may return to the old way of doing things . In some cases , Digital transformation requires a complete cultural transformation , This is a long and difficult process .

06  iteration

You can't change your organization in an instant . contrary , Make a small change , Evaluate and repeat . Digital transformation projects that evolve through a series of steps are more likely to succeed than large-scale changes that are attempted at one time . If you keep your strategy flexible , Then you can make some minor changes in the process , And respond to changing situations in a timely manner .

07  Consider adopting a digital transformation framework

Some analysts and consulting firms have developed a digital transformation framework , Can help you shape your strategy . please remember , Your actual strategy should be unique to your organization , But following a proven strategy can help you avoid missing key steps or repeating mistakes that other organizations have made . A framework is not necessary , But it may be helpful , Especially if your management team has no previous experience in digital transformation .

Four   What is the digital transformation framework

According to Boston Consulting Group (Boston Consulting Group) The data of , Less than a third (30%) Our company has successfully realized the digital transformation . In order to help enterprises improve their winning rate , Many consultants 、 Suppliers and other experts have released the digital transformation framework .

The digital transformation framework is a step-by-step plan for the successful implementation of the digital transformation strategy . Usually , It comes with a graphical representation , To show how consultants perceive digital transformation .

Some of the best-known digital transformation frameworks include :

(1)  The MIT Sloan Digital management review provides a wealth of resources related to digital transformation , Include some different step-by-step guidelines , It can be classified as a digital transformation framework .

(2)  The six elements of BCG's successful digital transformation include integration strategy 、 Leadership commitment 、 High quality talents 、 Agile governance 、 Effective monitoring and modular platform . According to the report , With these factors 80% All organizations have successfully achieved digital transformation .

(3)  PwC's digital transformation framework has five steps : Develop your business , Create new value , Protect the future , Accelerate and understand your customers through technology .

(4)  Cognizant Of 《 How to win with digital scripts 》(How to Win with Digital Playbook) In one book, it means , Only 30% The digital transformation project of has achieved success . It said , To be one of the winners , You need to adopt a people-oriented design approach , Dealing with emerging technologies , And digitize your business strategy .

(5)  Gartner Of 《 Digital business transformation IT The roadmap 》 Describe the key steps of digital transformation as ambition 、 Design 、 scale 、 Delivery and improvement . The report also states that , Digital transformation remains a top priority for business leaders .

Whatever digital transformation strategy or framework your organization chooses , It is worth noting that , Planning and strategy are just part of the job . In order to succeed , You don't just need a good plan , You also need to perform well . As more and more companies embrace digital transformation , The companies that rise to the top of the industry will be those that perform digital transformation well .

--------END------