Digital transformation (DT) offers a lot of benefits. The first and most important step is to clearly define your digital transformation goals.
The term “digital transformation” might be relatively new. However, its meaning isn’t really new at all. For instance, the iconic video game company Nintendo started as a playing card company. Meanwhile, Amazon started as an online bookseller. Apple almost hit rock bottom in the 90s but reversed its course by making a more intuitive smartphone.
Those are just a few examples proving that business reinvention must never stop to succeed. When done right, DT can dramatically improve how business functions and serves its customers. On the other hand, failure to adapt DT could knock your business out of the competition.
Common Digital Transformation Goals
Implementing all emerging digital technologies is not a smart thing to do. As mentioned, the first thing you must do before embarking on the journey is to clearly identify your digital transformation goals.
Of course, the goals may differ from one company to another as everyone has unique goals. However, it is best to include at least one of the digital transformation goals listed below.
Optimize processes and operations
This is often the main goal of companies when undergoing DT. A Harvard study revealed that around 60% of companies have switched to cloud-based apps to further improve their operations.
Process optimization typically includes reconfiguration of outdated procedures and ongoing cost-reduction efforts.
Gain a competitive advantage
A generation ago, it’s hard to imagine that Google and Facebook would be tech giants. Yet, they took the leap of faith and adhered to digital-first business models. Moreover, they leveraged data to bring disruption to the advertising industry.
Indeed, digital transformation and non-stop innovation are crucial. That is in standing out from the competition.
Increase top-line growth
Meanwhile, most small and Fortune 500 companies implement DT to increase revenue. Technology can streamline customer interactions and transform how customers acquire services.
For instance, the COVID-19 pandemic has enabled many clinics to utilize videoconferencing apps for telemedicine services. Meanwhile, many insurance companies are now using mobile apps to submit claims. This allows clinics to “see” more patients and submit more claims.
Improve the customer experience
Companies may use technology to improve how customers interact. Also, to implement internal tools that result in less time processing paperwork. It may also tackle other repetitive tasks. This allows employees to focus on higher-value tasks such as offering hands-on assistance.
Starting points for transformational goal-setting
There is no one-size-fits-all strategy for setting digital transformation goals. Yet, here are three possible starting points for your goals:
- Connected technologies. Platforms like the cloud or the Internet of Things can make data more accessible and transparent.
- Autonomous technologies
- Programmable technologies
Of course, you don’t have to limit your goals to these starting points. Moreover, you’ll need buy-in from these stakeholders:
- Senior management. Their strong influence will greatly contribute to promoting DT. Moreover, they will provide the necessary funding.
- IT department. This team integrates key technologies.
- Finance team – to help eliminate fraud
- Talent and human resources – to attract and retain talent
- Marketing department – reassuring others of the need for transformation
- Frontline employees – without this team’s endorsement, your process is bound to fail