Whether you’re in the early stages of a business digital transformation or have already made significant strides, you’ll want to know how to create and maintain a successful digital strategy. There are several key considerations to keep in mind, including breaking down information silos, setting measurable goals, and identifying the digital tools and technologies that will work best for your business.
Creating a culture shift in business digital transformation can be a challenge. Having the right people in the right roles and leveraging new technologies is a must for success. However, many organizations struggle to meld digital culture into their workflow.
Fortunately, there are a few tools to help you achieve cultural change. The underlying premise of the framework is that a company can only innovate and become more competitive if its people are willing to adopt new ways of working.
Another key factor in achieving cultural change is communication. This means creating an open forum where employees can raise questions, share concerns, and learn new behaviors and skills. These forums can be used to reinforce new cultural expectations and motivate employees to adopt new practices.
Breaking down information silos
Taking the time to break down information silos is crucial to your business’s digital transformation. Not only does it affect the way your business operates, but it can also impact your customers. For instance, dispersed data can make it frustrating for customers to access important information. In addition, information that is inaccurate or outdated can cause problems for the entire business.
Silos can also impede innovation. For example, if you’re a brand, it’s hard to reverse churn when your customer service department doesn’t have cross-channel data. You’ll miss out on business opportunities if you can’t meet your customers’ needs in real time.
A data lake can be an effective tool for breaking down information silos. However, a data lake can only go so far. To truly make the most of your company’s data, you’ll need to work with IT and the lines of business.
Identifying digital tools and technologies
Identifying digital tools and technologies for business digital transformation requires a holistic approach. It includes a strategy, ecosystems, and future proofing.
One of the key goals of many digital transformation initiatives is to enhance the customer experience. The right technology will help improve engagement, speed, and cost reduction. However, before embarking on a digital transformation journey, companies need to assess their readiness for the change. This can include identifying training deficiencies, determining the low-hanging fruit of the transformation, and planning a scenario for success.
In addition, the technology used to drive the transformation may also change the value propositions of the company. This is often a result of the Internet of Things, which has increased the need to use data more quickly and accurately.
Metrics and goals
Choosing the right metrics and goals for business digital transformation is a critical first step to success. Identifying these key performance indicators (KPIs) will give you the insight you need to understand the current state of your digital transformation and help you make future plans.
For example, a popular metric is the adoption rate. This metric measures how many users are actively using your new technology compared to the total user base. You can measure this by tracking how often employees use specific software or platforms.
You can also track customer churn, which measures how often customers stop using your products or services. If the rate is too high, it may mean that there’s something wrong with your product or service.
You should choose KPIs that are appropriate for your organization’s culture. This is critical because changing work practices can take time. During this time, employees may need more training, support, or encouragement.
Managing risk is a critical component of digital transformation. This requires upskilling and hiring new talent. It can also involve integrating new technologies to enhance business processes.
The speed of change in the digital world has increased the complexity of risk. This can result in setbacks and failures. To help with this, a digital transformation agenda can outline mitigation strategies.
The top companies are investing in risk management. They use an integrated and comprehensive risk assessment. They also adopt a thorough risk taxonomy and develop mitigation activities.
To mitigate risks, a company must ensure data protection at all stages of the data life cycle. This can include anonymized data and well-crafted contracts. These measures can reduce remediation costs by up to 10%.