With the expansion of automated technology, digital transformation is essential for acclimating to various changes in the digital space, including evolving consumer interests and operational strategies.
Yet, digital maturity — the process of responding to these developments — involves applying organizational changes to a business’ infrastructure.
Many companies lack the fundamental framework required to modernize operations. As a result, 80% of businesses fail in their digital transformation efforts, according to Holden Bale, GVP and Head of Commerce at Huge.
So, how can you streamline digital transformation to enhance your organization and stay on top of trends?
When developing a digital transformation strategy, it’s important to view it as an ongoing process. As Jarid Lukin, the Global Senior Director at Mars, says, “there’s always another phase, another project; you have to keep iterating and evolving.” Once you acknowledge this factor, you can begin to structure your business for the future.
The 4Ps framework involves assessing your company’s digital capabilities in terms of people, processes, platforms, and performance. Holden Bale notes that businesses must take the initiative “to own, operationalize, and evolve [their] digital capabilities.”
To execute this model in its entirety, organizations should form strategic partnerships with experts who can implement forward-thinking processes to optimize performance. It’s also crucial to adopt innovative platforms suitable for your functional strategies and customer needs.
By taking an integrated approach to digital transformation, you can develop a course of action that aligns with your business goals.
One of the core components of digital transformation is the integration of new technologies and platforms. But, with these new programs come significant investments, so allocating and prioritizing your resources is paramount.
How can you determine the most profitable technological investments to strengthen value in your company?
Jarid Lukin advises incorporating short-term and long-term financial strategies into your business plan. A short-term strategy includes considering digital investments in terms of your value proposition. Evaluating potential benefits such as first-party data or consumer insights drives ROI. In the long run, upgrading platforms to serve your customers better and secure your resources may be beneficial.
The final stage of digital maturity is determining which aspect of your business to reconstruct. The three most common forms of digital transformation are omnichannel abilities, digital finance, and business model optimization.
With an omnichannel approach, you can utilize digital automation to expedite product deliveries and manage your inventory effectively. Digital financial transformation entails converting website traffic into new leads to maximize top-line growth. Enhancing your business model requires shifting from manual to digital processes. Russ Barnes, General Manager of Digital Business at BSN SPORTS, maintains that the “digital world has a lot more customer touchpoints than the one-to-one relationship you might have in the analog world.” Hence, it’s critical to understand how to expand your reach.
You can construct the best path forward by approaching digital transformation with practical and progressive strategies.