Contact us anytime to know more - Kuldeep K., Founder & CEO CISIN
Leaders were recently invited to assess the effect of COVID-19 pandemic regulations on their digital transformation strategies, with 8 out of every 10 CEOs responding that their digital strategy had been expedited as a result of it. According to one report, an astounding 8 out of every 10 have speeded up this transformation as a direct response.
COVID-19 has taught us many valuable lessons about doing unexpected business, one being how essential digitizing business operations to maintain company success is. Digital transformation doesn't just involve changing technological systems. Still, it affects all members of an organization in ways beyond technology - something to keep in mind as changes to operations take effect and could cause serious ripple effects to human interactions as a whole. So what's its downside or "flipside?"
Human nature dictates that changing behavior is never easy. While change may be achievable, transformation requires extra support to get there successfully. With personalized coaching, you can navigate change and facilitate transformation - we will walk through how a digital strategy should look, as well as the ramifications digital transformations have on company culture and success.
What Is Digital Transformation?
Fast-moving companies are discovering innovative ways to harness technology as it advances. Technology makes life simpler, saving energy, time, and even work hours. All companies within their sector must learn how to incorporate tech in their operations or risk falling behind, leading them towards adopting it only halfway. Fearing being Left Behind: may lead them down an isolated route toward digital technology rather than investing in its complete transformation process.
What Is A Digital Transformation Strategy?
Digital transformation refers to the practice of altering how work gets completed by adopting and integrating new technologies into an organization's operations, using digital tools as part of this transformation process. Fundamental digital transformation occurs when tasks are conducted using these digital solutions in fundamentally new ways compared with prior methods used before them; as a company develops its digital strategy, it should guide itself as it navigates this path of change for the company.
At present, technology is everywhere, and there seems to be an app for everything imaginable. "There's an App for that" has become the go-to statement when discussing solutions or tools available online. As business leaders, you are faced with many technology options to select from. People behind each solution also pose unique problems; your customer service experience needs to be considered in this endeavor. Let's first outline the critical components of digital strategy before discussing solutions for how it might apply in practice.
Digital Transformation Can Be Divided Into Four Main Categories
Harvard Business Review has identified four main areas for digital transformation. Each of these areas touches on your business differently.
The Technology
New technologies are ubiquitous today - from cloud computing and the IoT, machine learning, artificial intelligence, and blockchain through automation to the explosive growth of online commerce sites like Amazon - with digital disruption inevitable as emerging technologies will remain with us for some time to come.
One constant in technology's constant change and evolution: humans need technology in order to perform well in their jobs, digital business is the future, and organizations incorporating new technologies as part of their strategic approach can often prove more complex than initially anticipated - often making integrating any initiative or change more complicated than anticipated.
Reworking or modernizing an older system often necessitates overhaul and modernization; planning the change effectively may take months - sometimes years- as does finding suitable technologies; to complete any digital transformation strategy successfully requires at least some type of technology change strategy involving digital leaders when selecting which technologies you wish to implement.
Data
Data is one of the main elements in digital transformation strategy. Technology and data often go together; you may turn to new tech because you cannot get access to all the required information.
Consider the significance of data when planning digital transformation strategies. How much information do you require for team success, and does implementing technology make sense if there's no way of accessing necessary metrics in order to evaluate performance?
Unfortunately, businesses often don't get all of the information or feedback that is essential to making business decisions. Your organization could be looking to implement an IT system; frontline employees would usually manage this in daily operations - do these frontline workers feel heard by management?
Make sure that you collaborate closely with the leadership of your organization, and do not underestimate the significance of feedback. Is the technology you are implementing the optimal choice if it fails to produce essential information for your business? From an information technology point of view, what is your digital transformation plan, and how will success be measured when dealing with data?
Process
As soon as new technologies are integrated into existing processes, nothing changes except perhaps increasing efficiency. Rethinking processes to achieve desired outcomes rather than outputs is necessary for true digital transformation.
Changes to processes often stem from altering people's behaviors or mindsets, necessitating patience, perseverance, and an eye toward growth when revamping processes. Therefore it stands to reason that processes will play an integral part in digital transformation strategies to guarantee their success in your business.
It can be different for each organization. The process can be any combination of the following:
- Aligning internal and external customer expectations.
- Work activities and teamwork can be streamlined to achieve a cross-functional, efficient process.
- Process management that is focused on the customer and end-user. It is essential if you build mobile apps.
- Improve existing processes to take into account any new technologies
- Strategic decisions about company processes, customer processes, and others should be rethought.
Collaboration is critical to creating effective and outcome-driven processes in the workplace. Your teams should be working towards the same goal. In this part of the strategy, it is essential to have clear expectations and communicate clearly.
Changes in Organization
At this stage, the magic begins. Transforming an organization may seem impossible at first glance, but organizational skills are crucial in any digital transformation initiative. You need leadership, emotional intelligence, and teamwork as part of this endeavor - as well as robust and clear communication that must accompany it.
Human beings are at the heart of any organization. Yet, many struggle with change, and its implementation can be painfully uncomfortable for employees accustomed to doing something a certain way. If that sounds familiar to you, perhaps trying to implement new procedures for employees could help ease the transition.
Many leaders may resist transformational changes. Achieving such a massive transformation requires risking power, budgets, security, identity, and status while making some skills redundant with digital transformation.
Consider including organizational change experts when crafting your digital transformation strategy. A team containing people adept at understanding underlying causes for resistance as well as working closely alongside those affected can make all the difference for a smooth transformation journey.
Three Reasons Digital Transformation Is Essential
Digital transformation is crucial for many different reasons. We can list three reasons for any company to consider strategy in the digital age.
This Saves you Time
Digital transformation strategies offer tremendous value: time saved through working technology can save both employees and customers valuable minutes; indeed, productivity in this age is of extreme value.
With new technologies at your disposal, you may be able to provide faster solutions to customers more efficiently than before. Furthermore, workers might streamline processes that were inefficient before, and as a result, digital solutions may increase employee satisfaction; you will boost both happiness and productivity at work when time-saving measures allow them to focus on other important tasks instead.
Agile and Growth
Agile growth is at the core of any effective digital transformation strategy. Achieving digital transformation success requires adopting an agile, growth-minded mentality; encouraging growth and innovation across cultures while supporting company culture development are crucial aspects. Businesses thrive when employees have the freedom to develop themselves while challenging status-quo assumptions; employee learning becomes central.
At Cyber Infrastructure Inc, we've learned the value of mental fitness and an agile work mindset go hand-in-hand. Employees must improve their mental health for effective development and to stay in agile teams. Resilient workers tend to be more creative and flexible in thinking and contribute more efficiently towards agile teams.
Innovation
Agile growth and innovation go hand in hand; digital transformation is essential for this and many other reasons. Let's focus on innovation as a key theme here - prior to the pandemic, only one out of five workers were remote; now, more than 70% are remote, with employees desiring flexibility that comes from hybrid workforce models; our data shows this change has resulted in 56% improvement of innovation and creativity as evidenced in improved innovations by 56%.
Modern life relies on innovation at workplaces and in how we work; digital transformation lies at its heart. How can your staff best equip for innovation and set employees up for success? Consider how digital transformation could influence innovation at your organization. Your organization could find more success through encouraging change and innovation; when done successfully, digital transformation could even increase the revenue growth and profitability of the enterprise.
Read More: Building Effective Digital Transformation Strategies for Mid-Market Companies
Three Common Challenges To Digital Transformation
Change can present significant hurdles, as one study showed 78% of organizations failed to ramp up their digital transformation initiatives. Digital transformation strategies represent major transitions that may face unique obstacles; with proper guidance and attitude, it may be possible to overcome any such difficulties.
Resisting Change
If people are happy with the way they do things, this could be a roadblock. Some people may not be willing to alter their habits. We find that people are more resistant to change than we thought. Trust is the foundation of any meaningful change. It's difficult for an organization to achieve the desired change if it lacks trust.
Try these tactics if your organization seems to be resistant to change:
- Include employees in the creation of the transformation: Frontline workers have an excellent sense of what does not work, and they may also have ideas on how to serve customers or coworkers better.
- Be sure to communicate early and often: Effective communication can be a critical factor in building transparency and trust.
- Pay attention to the concerns of your employees: Show vulnerability, and be willing to listen. The threat of change can affect people on an emotional level because they may be affected by its potential effects. If you demonstrate that you are concerned about your staff, you will find they become more invested in their organization.
- Explain to your staff the benefits of the changes: There is a problem if your employees do not understand the reasons for the change. Be sure to communicate the benefits that your employees will receive from this change, especially if they are going to have a better employee experience.
Leadership Is Not Supporting The Team
Sometimes those resistant to change end up in positions of leadership, leading them to question what the value is of digital transformation in business. Leaders who don't support change may end up leading their staff astray and must understand the significance of having support from above in your organization's leaders.
As with the staff, leaders need to be informed of the benefits of change as part of an organizational transformation plan. Listening and acknowledging feedback should not go ignored. Every member must accept personal accountability for any changes occurring within an organization.
Change Management Is Not Enough Supported
Hire people with specific expertise if you want to implement large-scale transformation. Not just good communicators will do; your efforts may hit an impasse without an efficient team that understands its significance for everyone involved and who is capable of making change relevant for all participants in it.
Employees typically resist change. You can significantly limit its effects by not creating a team dedicated to leading it within your organization, whether from outside (Quest Diagnostics and ATB Financial are great examples), within, or both - although internal might actually work better; nonetheless, they require support, guidance, and training throughout this transformation process.
Consider recruiting the help of your team to overcome this hurdle. Seek leadership buy-in so you can provide the necessary support, then use your influence by defining team needs, duties, and responsibilities, goals, as well as an overall strategy.
What Impact Does Digital Transformation Have On Company Culture?
What is the connection between digital transformation and culture in contemporary society? There's more than meets the eye when it comes to this debate; our workforce is becoming more dispersed, so technology provides communication channels between employees. When used effectively and efficiently, technology makes work streams smoother.
Technology exists because people use it. At its heart lies human users of new technologies who need belonging and connection in an ever-more-distant work environment while wanting to explore something new - but employees use various platforms and forms of interaction among themselves in order to foster this sense of community and belongingness among themselves.
Answer: To allow employees to thrive and succeed with technology, the technology must be reliable and provide desired results. Your staff will sense the positive results of a successfully implemented digital transformation strategy.
Digital Transformation: 6 Different Types
Now you may have an appreciation of digital transformation strategies, understanding why they are essential and what to anticipate when implementing your plan. Are You Equipped for Success in Business? Your strategy, similar to mental fitness training, must cater to the unique requirements of your enterprise.
Notably, various tools exist for different needs and situations. When developing your strategy, different products might be needed depending on its goals and desired outcomes. Before considering specific tools as solutions to problems or goals, make a list of goals to strive towards and explore possible outcomes first before considering specific tools such as those below:
Collaborative tools: Google, did someone say it? Google, a Cyber Infrastructure Inc. client, has been at the forefront of building collaborative tools for many years. The key word here is collaboration. People need to be capable of working together in an ever-changing hybrid work environment, whether it's a Google Document, Office365 or anything else.
Communication methods within the company: Cyber Infrastructure Inc. uses Slack and email to store essential resources. You may require more support for internal communication depending on your company's size. Ask employees for feedback and consider tools to increase team communication.
Customer Relationship Management (CRM): A CRM system is essential for most businesses (if not all). Your organization can better meet customer needs with a CRM. This can automate sales cycles and increase customer retention.
Tools for CMS: Data shows that 70% of buyers define their requirements fully on their own before even contacting a salesperson. The content of your website is crucial to the success of your digital transformation strategy. Your website, blog, and any other content that is visible to customers are all housed in a content management system.
Tools for managing finances and payroll: Some HR tasks, such as payroll, can take a lot of time. You can automate payroll and financial management processes with the right tools. This will allow your HR department to focus more on impactful tasks.
Tools for human capital management: Human capital management is essential for any business that wants to grow. The right HCM tools can empower the success of your business, from recruiting and employee satisfaction to providing feedback. HCM software can also be used to address payroll and other HR issues.
Six Steps For Building A Digital Transformation Strategy
Now is the time to develop your strategy, but where should you begin? Create a clear vision before thinking about technologies - this includes thinking through how the world has been shifting and where your desired goal lays, as well as which capabilities need to be put in place in order to reach those goals. We were then approached for advice regarding the six steps of creating digital strategies.
1. Create A Technology Roadmap
In the following section; we'll go into more detail about how to create a road map. This is the first and most important step in building your digital strategy. You will have to decide what your organization wants from a technological perspective and also where it is going. It all starts by evaluating your current situation. You can then identify what steps you need to take.
2. Talent Development And Upgrading
Your talent must meet the needs of your roadmap before you can implement it. This means that as a leader, you need to make sure your team is up-skilled. The desire to learn is strong among employees. Upskilling employees is important, whether you are assembling new teams or bringing existing ones into the team.
Think about how you can offer your employees learning and development. Employees can benefit from personalized coaching to help them navigate through change. Employees can overcome challenges gracefully and with resilience when they receive coaching.
3. Agile Methodology
Any digital transformation strategy must have flexibility and agility. Moving to an agile model, however, requires transparency, collaboration and change. The benefits of an Agile mindset outweigh the disadvantages. The teams will adapt faster, solve problems quicker, and make improvements sooner. Adopting agile methodologies can ultimately help to manage risk, increase productivity and encourage innovation.
4. Modern Technology Is The Way Forward
When you think about digital transformation, you are thinking of modern technology. The new technology brings with it a host of features that are crucial to the digital transformation.
This means that you must fully understand what modern technology can bring to the table. Ask your techies to help you evaluate the new technology. Ensure that the technology and tools you choose will meet your needs. Many companies conduct focus groups and testing to socialize and collect feedback on new tools. It can ultimately help to increase the adoption of technology within your company.
5. How To Manage Data
You've probably already decided on the technologies that you want to implement. Before you begin, think about data and data management. What is the system's integration? How can the selected tools provide you with data and insights? Can you identify any data management issues?
Your organization may suffer if you don't have robust data insight. Data management can be integrated into your strategy for digital transformation. You'll find the solutions you need to meet the needs of your business.
6. Adopt Scale And Grow
Your change management team can really shine in this area. It's possible that you choose a new technology. It's possible that you have developed a solid strategy and roadmap. Your digital transformation might be ready for immediate implementation. If your company doesn't implement the strategy, you are stuck. Adoption can be accelerated by working with your team. You'll then be able to identify how to scale your digital transformation and grow.
How To Create A Roadmap For Digital Transformation
We explained the roadmap for digital transformation in just three steps. Here's how you can get started with your roadmap if you are just starting out on your journey of digital transformation.
Define digital transformation: It can have different meanings for each organization. This step should demonstrate to your leaders why it is worthwhile.
Organize your launch: What are your key stakeholders? What is the role of change management? What new programs or initiatives are needed? For a successful launch, a company must organize itself around it. It is possible that this will be a cross-functional project that affects all employees. Be sure to engage with all stakeholders before you begin the project. Create a community of champions for digital transformation to encourage early adopters. Be sure to gather feedback from your employees and adjust to their suggestions.
Scale: After you launch, work does not stop. You should recognize that your launch may only be the beginning of your digital transformation. Launching initiatives and driving adoption is the first step in achieving your goals.
Let's imagine that your organization has recently introduced a company-wide Intranet. What are your employees' needs? Many organizations offer "office hours" for questions regarding a tool or its goals. Other people create a lot of guides, tutorials, and resources to help you use the tool. Others might provide training to improve skills.
What Are The Metrics For Measuring Your Digital Transformation?
Each organization defines success differently; your company goals, tools, and strategy will ultimately dictate your definition. We offer some key points when measuring digital transformation successes: outcomes are what ultimately matter here - be they positive customer or employee experiences or financial returns to the business: this should all count:
- Customer satisfaction and customer value: You're likely already measuring customer experience or satisfaction. Are you seeing an increased NPS score since your digital strategy was implemented? How do you hear from your customers? What are your team members saying? Develop KPIs for your customers with your leadership to determine if they are receiving more value.
- Engagement (and performance) of employees: Employee engagement and performance can be greatly impacted by digital transformation strategies. You can evaluate the success of your strategy with pulse surveys, feedback forums, and tools for employee engagement.
- Innovation and agility: It can be difficult to measure, but is the company better able to respond to a changing environment and seize opportunities? The transformation will not be successful if the answer to this question is "no."
These metrics are often used to evaluate technology implementations. They can be helpful. If transformation is the goal, then these metrics won't be enough:
- Savings in time: The technologies you implement are likely to save the workers valuable time. Maybe you have set goals around time and productivity. You might want to compare your transformation before and after.
- Use and adoption: What is the number of active users? How would you describe the rate of adoption for certain tools? Make a KPI around adoption and real-time use.
- Reliability and availability: This one's for the technical pros. Do you see a higher flow efficiency? You might want to know the average time it takes to fix bugs or to detect them. New advancements are constantly being made. When experimenting with new technology, keep an eye on the operational efficiency.
Conclusion
As part of your digital business transformation strategy, the initial step should be identifying what best serves your organization. When formulating this digital transformation plan, take an inventory of current business processes as starting points. Digital disruption has become more frequent over the years - although with each age comes unique challenges - you should test this transformation with leadership support from across your organization.
With the right tools and resources, you can achieve digital transformation. This transition may lead to revenue increases, new products, or improved business results, all from an effective digital strategy. Navigating significant changes can be tricky; why not partner with Cyber Infrastructure Inc. so your employees are supported through uncertain times.
