The chances are good that you’re hearing a lot about “Digital Transformation” lately. It’s a term that’s been on the upswing for decades now, steadily increasing in popularity on Google since early as 2014 with a significant increase over the past year. Google “What is digital transformation?” and you will come up with about 3.56 billion results.
Figure 1: Google Trend line for “Digital Transformation”
When a term becomes that popular that quickly, it’s worth giving it a second look. “Digital transformation” isn’t just a fad or a passing trend; instead, it’s a term that encompasses a host of strategic initiatives designed to position your company for long-term growth in a digital world.
Here are five truths about Digital Transformation that reveal why you must integrate it into your overall business strategy.
5 Truths About Digital Transformation
Truth #1. It’s Not About Technology
Or rather, it’s not just about technology. Put less emphasis on the “digital” piece and more on the “transformation” piece. Digital transformation is about changing your organization from the inside out using technology tools to support and accelerate your business. In this equation, the point is to isolate areas where transformation is necessary for continued growth and then implement digital strategies to change those areas to move your organization forward.
Truth #2. It’s Not a Prescriptive Program
Many management fads and trends are packaged as “one size fits all,” step-by-step plans that will change your organization if you just follow the directions. But no two organizations are the same, and what works for one may not work for another. Digital transformation will be highly dependent on the individual needs, culture, and goals of an organization. A retailer’s digital needs will differ from those of a manufacturer or an investment bank.
Truth #3. It Doesn’t Have to Be Done All At Once
Successful digital transformation initiatives are often not large-scale, enterprise-wide initiatives. Rather, they may only address one department or function— it could be fulfillment, the contact center, or purchasing. It is appropriate to take on digital initiatives one department at a time, ensuring that the technology works as expected and that the employees have adapted before moving on to another initiative.
Truth #4. Success Starts with the End in Mind
What is your goal for your digital initiative? Is it a better customer experience? Have you streamlined purchasing and inventory? Better cross-functional collaboration? Define your goals first and work back from there. For example, suppose you want to improve customer interactions with your call center. In that case, it may mean implementing more channels for customers to reach you—or it may mean using workforce management software that helps agents respond more quickly to calls. Either way, you need to know what customers want, what employees want, and how to bridge those gaps before deciding on a technology solution.
Truth #5. You Need a High Degree of Engagement
Whether from leaders, employees, customers, or other stakeholders, the most successful digital transformation projects involve a high degree of engagement. These initiatives are not something to be dictated from the top-down as a royal fiat; rather, successful digital transformation initiatives involve a lot of conversations about metrics, experiences, goals, and culture. It does no good to roll out a new cloud collaboration app if the entire company resists its adoption or continues to use an antiquated solution.