Digital transformation.
May 13, 2021
Digital transformation is no longer an option
Are you interested in digital transformation?
More than just a trend to be followed, digital transformation is a real change of mindset for a company. Although increasingly implemented, it is still an unknown concept for many companies.
Defining digital transformation
On the face of it, digital transformation seems a simple concept to understand. However, it has many nuances and requires an in-depth analysis of the company's environment if it is to maximize and optimize its transition to digital. This analysis will highlight the company's strengths and weaknesses, and enable it to choose the right strategy to adopt.
So what is digital transformation? It's the use of all available digital technologies to improve business performance, and contribute to the overall elevation of the company.
This transformation automatically implies a change in the way the company is organized, with new ways of working.
The benefits of digital transformation
Still little recognized as a real opportunity, digital transformation is indeed one. It offers a number of advantages that have become necessary in this day and age, on pain of seeing one's business disappear.
Here are all the advantages:
- Optimization of employee performance
- Simplification of work tasks
- Modification of corporate culture to better adapt to market changes
- Improved customer experience
- Differentiation from competitors
- Increased proximity to customers
- Customer loyalty
Digital transformation vs. digitalization
Indeed, when used in conjunction with each other, the 2 expressions seem to mean the same thing. So what's the difference between digitization and digital transformation?
Digitization is the digitization, via new technologies, of a very specific perimeter such as: a market, a business, a process etc. Systems are therefore digitized, some work tasks but nothing more.
Digital transformation is specific to companies and organizations whose beliefs, organization and practices are about to change. These changes include the strategic vision, the business model, the corporate culture, all the processes, work and systems used.Strategic direction during digital transformation in an organization. It's important to clarify everyone's duties and obligations. Indeed, digital transformation is everyone's responsibility, but particularly that of the management team. Companies are often organized around a clear hierarchy, and find it difficult to leave room for individual initiative.
However, before they can hope to train their teams in the axes of digital transformation, managers need to be able to support their staff and answer their questions. It's no longer a question of divisions, but of distributing skills in a collaborative manner.
Managers must therefore be able to identify an opportunity, identify the obstacles and define how to overcome them.
An initial analysis along the following 3 axes is therefore necessary:
- Vision: where are we going?
- Mission: our raison d'être
- Values: what guides us
In addition, your strategy must be based on 4 P.A.R.C. dimensions:
- P: People
- A: Architecture
- R: Routines
- C: Culture
That's why it's important to ask yourself these questions, so that you can draw up a list of actions and prioritize them.
Defining transformation projects
Digital transformation is a highly complex process. To help you with this change, the design thinking method is highly recommended, to leave nothing to chance.
Design thinking is an innovation method that focuses on gaining an in-depth understanding of users' needs, and then imagining the best solutions to meet them, through a series of structured steps.
Design Thinking allows you to :
- Solve customer or employee problems over the long term.
- Tangibly reduce risks before taking any initiative.
- Make decisions based on facts, not opinions.
- Align teams around common, unifying objectives.
- Increase employee motivation and involvement.
- Rely on a structured, easily replicable method.
It is then essential to interview users, to understand the results and respond with solutions.
Integrating people into change
Excellent change management is essential, as there are many risks for staff:
Employees without conscience or desire:
- Employees ask the same questions over and over again
- Lower productivity and higher sales
- Accumulation of information and resources
- Delayed implementation
Employees without knowledge and ability:
- Reduced or inadequate use of new systems and tools
- Reduced productivity maintained
- Employees lack confidence if they can succeed in the future
- Increased impact on customers and partners
Employees without backup:
- Employees revert to old ways of working
- Utilization is lower than expected
- The organization builds a history of poorly managed change
To understand how teams react to change, the Kübler-Ross curve highlights the different emotions at this stage:
Finally, among the many methods available for change management, the ADKAR model is one of the most effective and pragmatic.
And how far have you got?
As you can see, digital transformation presents a number of challenges. Despite the many explanations available on the web, it requires expert analysis and strategy development.
BB Switzerland is an expert in the development of digital marketing strategies (c.f.), an area linked to communication, and is therefore ready to support you in this major challenge.