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How to Promote Digital Transformation in Companies

by Uneeb Khan
digital transformation

Amid constant changes in the market and society, one thing has become crystal clear for many managers worldwide: digital transformation in companies is inevitable!

If you are at least tuned in, you must be tired of knowing this, right? But do you know how to deploy it in your organization? And no, being present on social media or automating some internal processes is not enough. It goes far beyond virtualization and technology.

It is a chain that involves several fronts in an integrated and organic way from a thought focused on innovation. 

We understand the difficulty, so in this article, we will explain everything you need to know about digital transformation in companies, its importance, its impacts, and how to apply it efficiently and assertively. Check out!

What is digital transformation? 

First, it is important to recap what digital transformation is. We can define digital transformation as a permanent movement within companies that promotes profound changes in the entire structure – from internal processes and mindset of a business – using technology, prioritization of innovation, and strategic focus on customers.

This transformation needs to be explicit from the technical to the interpersonal level, even among the individuals who work there. In general, digitization is related to several other technologies within a company, such as the Internet of Things (IoT), Cloud Computing, Big Data, Artificial Intelligence, and others.

Why is digital transformation in companies necessary?

Not considering the importance of the internet and Information and Communication Technologies (ICTs) in their processes and relationships is a strategic weakness.

Thinking forms and adhering to new ideas and processes focused on innovation is a significant differential to making your brand a reference in the market against the competition. This brings competitiveness, opportunities, and positive change.

As a good agent of transformation, technology has the power to modify behaviors, so the change must consider the impact on smaller nuclei (employees) and not just macro (company).

Therefore, encouraging digital transformation in your organization is to think about technology not only at the level of implementation but also in how it can modify and guide projects and people, always focusing on improving results and business performance through innovation and optimizations.

And this leads us to consider digital transformation as an essential element for the success of modern companies, even small and medium-sized ones.

Nothing to incorporate the so common limiting belief: “hey, my venture doesn’t have the same capital, investment, and infrastructure. How will it work?” None of that! Sometimes significant changes are born from simple, small ideas.

Technology and the internet can provide many opportunities to benefit your brand. Just be aware of trends and open to change.

According to a 2019 Forbes survey on digital transformation and customer experience, 87% of companies surveyed believe “digital” will revolutionize the markets and industries in which they operate. However, only 44% of them are prepared for this.

How to calculate ROI in digital transformation? 

Every manager or manager needs arguments to put their ideas into practice, and Return on Investment (ROI) is one of the supports they can use. However, calculating it can be difficult and sometimes even a significant barrier to executing digital transformation in companies.

How to calculate it? What metrics to consider? What kind of indicators requires attention?

Well, the calculation of ROI in digital transformation can be done simply by putting the total revenue acquired (or forecast) minus the implementation costs.

For example, let’s say you’re developing a mobile app project for your company that has the potential to improve service perception and customer experience. It is an innovation that can bring competitiveness and innovation, but it needs a team of qualified programmers with UX knowledge.

It would be best to calculate the expected revenue from new customer entry and other benefits minus the investment cost of hiring this team to determine the project’s ROI.

You can consider as possible new customers, for example, that percentage of your business’s target audience that, until then, was not being served by the current platform. Those who stopped hiring their service for lack of a mobile platform.

In this example, we can also add the disclosure cost. There is no point in having a novelty or competitive innovation if people interested in this service are unaware of your company. Therefore, also include investments in advertising such as organic and paid traffic, digital marketing strategy, and social networks.

By measuring all this at the tip of the pencil, you can know if your business is ready for digital transformation. This is important to gain support within the governing body and strategize more assertively.

With your projects already underway, you need to calculate the ROI from time to time to know how efficient the digital transformation is. As we said earlier, this can be done simply by subtracting technology and operating costs from your revenue.

It is worth mentioning that in the long term, during deployment, there are also some key performance indicators ( KPIs ) that can tell you how well your strategy is working or not. They are essential to know if your goals and objectives are working. 

To analyze your customer-focused strategies, you can keep an eye on the following metrics:

  • Loyalty rate.
  • Net promoter score (NPS).
  • Customer experience.
  • The Number of complaints/compliments.

As for the internal processes and technology used in operations, you can observe:

  • Quality of processes.
  • Employee productivity.
  • Operational efficiency.
  • Time-saving.

Depending on the strategic point of view and the chosen business model, you can still track brand reputation, data-driven decision-making, competitive differentiation, and revenue growth.

In addition to these, there are other performance indicators and metrics that can be tracked to determine the rate of effectiveness of digital transformation in your company. Choosing which ones to follow up largely depends on your innovation strategy, goals, and objectives.

What is the step by step to promote digital transformation in companies?

To develop something of this magnitude in your business is to put aside the traditionalist vision and focus on improving digital and technological processes and the customer experience. Contrary to what many think, this is not that difficult if you have organization and focus.

The first step is always to carry out a comprehensive analysis of your company’s strengths and weaknesses. Find out what can help or hinder, both internally and externally.

For example, see what competitors are doing, analyze customers’ perception of your product or service, and if their pains are being met, among other points. Agility, quality, effectiveness? Knowing what needs improvement, the best tip is on where to start.

First: always keep in mind that the digital transformation process is an ongoing one. Once put into practice, it is good that it is always closely observed to know what is working and what is not.

Next, we’ll show you where to start efficiently.

Democratize data analytics:

It’s good that the data collected is shared with everyone from the service team to the CEO. After all, they are indicative that everyone’s efforts are paying off. 

In addition, it is a very tangible way of perceiving the impact of one’s performance, and this is good for all professionals involved in the project.

Of course, we must be careful not to “infinity” employees or share information that sometimes needs to be restricted to some areas of the business. Still, some information and feedback need to circulate. 

For example, the development and programming team knows the main calls involving technical assistance and problems with products or services sold.

Positive reviews and praise are also beneficial, and help professionals know they are on the right track.

train employees

Investing a certain amount of time in employee training, especially in implementing new technologies, is necessary. But be careful not to throw the news like a bomb in the laps of your collaborators.

Every new feature or tool requires a warm-up time, so implement it slowly and make room for efficient learning.

In this sense, HR should be considered an indispensable support sector. Another important point is its potential to attract and retain talent, which is why the Human Resources sector is one of the most important to think about digital transformation.

HR digital onboarding often needs technological resources such as data analysis to seek professionals with the right mindset and skills for the company. 

Still, within this aspect, digital transformation can also reduce costs and failures and improve employee productivity.

Encourage a data culture.

Every modern company in the digital environment generates data, which can turn into a competitive advantage if well used.

Encouraging a data culture, in this sense, is essential to make quick, strategic, intelligent, and assertive decisions.

Check IT improvement points

Doing so will help you find innovation goals in your products or services. An excellent way to verify these points of improvement is by analyzing the feedback received and the calls involving technical problems.

Professionals also need to be aware of the pain and needs of customers to seek the best experience. A current trend that can be considered is UX Design, which thinks about programming and building websites, applications, and interfaces interactively and satisfactorily.

What is the impact of digital transformation on business?

In general, innovation can be considered the most significant impact of digital transformation on companies. 

Not only in areas related to service and product technologies but also at operational levels such as management, CRM, inventory, and strategic marketing planning. All sectors stand to gain in terms of efficiency and productivity.

However, in addition to innovation, which is currently a significant competitive differentiator among modern companies, there are still other benefits, such as:

  • Greater customer satisfaction.
  • Process optimization.
  • Cost reduction.
  • Gain of competitive differential.
  • Productivity increase.
  • Efficient strategic management.

What are the leading digital transformation tools? 

Now, you must be wondering how to put all this into practice. Well, some tools can help, and here are some of them.

Innovation methods

Digitally transforming your business can be a little tricky at first. It is necessary to have focus and organization to avoid getting lost in the different processes.

An excellent way to achieve this is through innovative methodologies. Define what your team and projects need, choose the one that best fits the workflow, and apply it little by little.

Docbyte Services:

Offering several service channels is essential to ensure the satisfaction and experience of modern consumers. Therefore, investing in a multichannel platform is crucial for digital transformation.

Your business needs to be digitally accessible and give the consumer the freedom to reach you how they want, whether by email, social media, telephone contact, or WhatsApp, among others.

Chats online

As part of the multichannel strategy, your business needs to implement, online chat is vital to make your business accessible to consumers who like to have their needs promptly met.

An interesting point that should be considered when using this tool is to provide the choice between human service or chatbot.

Bot service, for example, is perfect for meeting specific needs and is well accepted by the modern consumer (it is sometimes the preferred medium).

 It’s great in some situations, such as solving common doubts, sending slips, and duplicating documents, but it leaves something to be desired when the customer has a sensitive issue.

Therefore, use both automated and human service and leave the choice between one and the other up to the consumer at the beginning of the service.

Technology in operational processes 

Technology can provide great opportunities to reduce operating costs and speed up various processes, such as logistics, purchasing materials, sending electronic correspondence management, and even signing documents.

Make it your main ally in the constant search for good performance. In addition, you can also embed it:

  • Strategic planning and benchmarking. 
  • management (of projects, inventory, and customers);
  • to productivity. 
  • The recruitment and retention of talent.
  • To the customer relationship.

Another benefit of using technology in processes like these is relying on automation and data from optimizations. They increase assertiveness and make mistakes and bottlenecks easily identifiable.

Non-customer focus

It is for him that all digital transformation actions need to be thought out, as his experience is what makes everything go around. Invest in ways to improve your perception of the service provided or your product from the smallest detail.

The customer needs not only to find what you offer but also to enjoy a good experience in every way, such as usability, service, and after-sales.

It is also worth mentioning the importance of always seeking to improve results. For this, you can use metrics and data to your advantage.

Business model

Be on the lookout for new business models that may bring opportunities to drive your company’s growth. The digital environment is full of opportunities to increase revenue, achieve relevance and get competitive advantages for your venture.

What are the prominent examples of digital transformation?

Digital transformation brings opportunities in different segments, including e-commerce, industry, agribusiness, services, and retail.

You probably know some reference ventures solidified from disruptive transformations, such as Uber, Food, and banks.

It doesn’t have to be a life tech, a startup, or a “unicorn.” Thinking big and looking for ways to benefit from the innovations already, there are enough steps; the rest comes little by little.

The impact of digital transformation on companies

As mentioned, digital transformation is the driving force between the current and future markets. The more mature a company is in digital transformation, the better prepared it is to conquer a larger market share and compete on an equal footing with the most prominent players today.

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