Digital Transformation (DT) is the process of using digital tools and technology to improve or renovate existing processes. It’s the process of strengthening or even replacing archaic, slow, tedious, often manual processes, with easier, efficient, and often automated processes.
But there’s a broader, more fundamental way to understand digital transformation. It means integrating digital technology into all departments of a business, which then dramatically changes how each one operates.
It also typically means a change in the business culture that starts in the C-Suite and filters down through every level of the business. This change involves a commitment to using digital tools to increase the efficiency and, ultimately, the bottom line of the business.
A commitment to DT is required because it’s not typically a simple process and often requires significant changes to long-used legacy systems. This, in turn, requires time and resources, as well as buy-in from the employees who will have to learn new ways to do tasks.
By its very nature, digital transformation involves making processes and workflows faster, easier, and more efficient. For example instead of spending hours processing paperwork, digital workflows can be created that will seamlessly and automatically move documents to their proper locations. This increased efficiency frees up employees to focus on other, more revenue-centered activities.
Implementing digital transformation allows you to remove points of friction experienced by your customers. For example, if new clients or customers are required to fill out a series of onboarding documents, digitizing and automating that process can lift a significant burden from them. This leads to higher customer loyalty and a greater Customer Lifetime Value.
The statistics are clear that implementing DT leads to improvements on the bottom line. In a recent Gartner survey, 56% of CEOs said that digital improvements have already led to increases in revenue. With this being the fundamental goal of all businesses, this in and of itself is reason to move toward DT.
It follows that if digital transformation leads to increased profits, it’s also necessary for keeping up with your competition, who are most certainly implementing a DT strategy. A recent Forrester survey shows that executives believe that within five years, as much as 50% of their revenue will be driven by digital changes to their businesses.
Digital Transformation simply can’t happen if the CEO and leadership team aren’t on board. It’s essential that the push toward DT come from the top down. This commitment signals to everyone in the company that digital transformation is a priority requiring commitment from all parties.
There are certain areas in your business that will benefit most from Digital Transformation. For example, internal research may show that shortening the time between an application being submitted and company follow up will dramatically increase customer loyalty and reduce the overall churn rate. Look for specific ways digital transformation can contribute to improvement.
Every digital transformation project will require some portion of the budget. It’s critical to determine approximately how much the digital transformation process will cost and then set aside the appropriate resources. It’s true that DT won’t be cheap, but the cost of ignoring it will be even greater. The benefits created will far outweigh the costs in the long run.
Digital Transformation always involves creating new, more efficient workflows. Your team must carefully (and often slowly) introduce new processes, giving employees and department heads adequate time to process and learn them. It is simply not a one-time project. A company culture must be created that recognizes these new realities and is prepared to keep pace with them. Every new transformation initiative should build on the previous one, ensuring that momentum continues to build and revenue continues to come in.
MojoTech helps transform businesses with cloud-native software solutions using progressive technologies. Operating at the intersection of lean product development, user-centric design, and engineering excellence, MojoTech builds progressive, scalable, value-driven software applications that solve serious problems.