What does transformation mean? Merriam-Webster dictionary offers a grounded and elegant definition: “Completely changing the act or process.” There’s not just one change. What companies need to take on in today’s dynamic markets is an “enterprise transformation,” a move that enhances customer experiences and improves the way they operate the whole business. New technology is one way of modernizing the product or services of an organization. This happens via all channels that are open to the public (websites, email, social media, mobile).
A digital transformation, of course, requires the right people to hire — those who understand how to use technology to drive innovation. This means identifying new product opportunities, re-imagining existing products, and making the right investments in technology to make all this possible. That meant engaging in a digital platform that would be compatible with the way people study and buy cars. It took a reimagination of how customers experienced the whole process. They are undergoing a digital transformation.
Transformation of a solution means rethinking how products are built, bundled, and sold to make business easier for clients. This is a shift away from the selling capabilities and features, focusing on selling the product’s value or result instead. Product teams need to reflect deeply on what customers want today — not how specific products were built or sold in the past. This is especially important in companies with broad product portfolios that were being developed through a series of acquisitions over the decades.
Data intelligence drives more informed decision making and allows businesses to respond more quickly to customer needs. A data transformation begins by analyzing the behavior and preferences of customers, then testing to learn what they want and finally measuring the results. Sometimes it ensures the product is then being marketed back to the customer. Companies undergoing this type of transformation need an infrastructure that brings together vital systems — product, marketing, finance, etc. — to inform customer experience in all aspects. This is challenging in larger organizations, where data continues to be in traditional siloed structures.
Benefits of enterprise transformation
- Reduced costs: Optimizing business technology and digital technology operations means cost-per-transaction savings, and increased sales.
- Improved customer strategy: New technologies create capabilities that can help a business acquire, retain, and assist customers while reducing marketing spending at the same time.
- Consolidated operations: Implementing cost-effective, customer-focused digital tasks streamlines business workflows and eliminates overheads associated with outdated solutions.
- Analytics: Digitization enables companies to combine data from all customer interactions and previously unstructured sources into a useful, actionable format to optimize customer experiences and costs.
- More customer-centric focus: The main concern of digital transformation is to use technology to improve the customer experience. By shifting focus and paying more considerable attention to what customers want, service across all touchpoints and channels is consistently being improved.
- New products/services: A business is better equipped than ever before to respond to its clients and the competitive industry climate with this original, customer-centric orientation.
- Accurate segmentation of the market: New technology helps companies to find more flexible and agile models based on customer requirements that have not been identified and monitored.
- Better silos: It becomes much easier to identify silos that span multiple roles and structures, enabling an entity to improve its productivity and influence.
- Universal customer experience: Connecting business-wide systems and technologies simplifies and universalizes the customer experience, irrespective of when, where, or how they choose to interact with a brand.
- Increased agility and innovation: By eliminating reliance on slow legacy IT systems, transformed businesses are becoming more agile and responsive to current market trends and requirements.
While each organization makes different use of its technology, there are a few universal keys to make the most of digital transformation. There are three things that your company needs to focus on when making changes:
- Connecting old and new technology: Digital innovation can only be as effective as the rest of your technology can be, so it is critical to understand current workflows and how technology impacts them. Review differences in the operating model and their speeds, agility, fluidity, and customer involvement in advance to prevent problems from occurring down the road. Don’t let past investments in technology or failures affect future acceptance.
- Establishing a new culture: Making sure your business technology is ready for the digital age is great, but if employees don’t believe in it, the transformation will fall flat. A workforce needs appropriate training and continuous learning opportunities to cultivate the necessary knowledge and skills to maximize the impact of digital transformation. Start by making modifications to critical processes linking legacy systems to new ones.
- Fostering collaboration: The coexistence of two different models during your transition has the potential to bog down operations and call into question decision-making. Without open lines of communication, these negatives only get worse. Organizational leaders should communicate on a continuous basis clear expectations of employee responsibility and accountability to minimize disruption.
The potential is exciting as more and more companies transform themselves, and the possibilities are mostly untapped. Digital technology has the power to revolutionize sectors, so don’t hesitate about thinking outside the box and trying something new.