We now live in a world where more people are connected, and reaching and keeping these customers requires brands to be where the consumers are...online. As a result, today’s corporate leaders are working to incorporate digital technology into all areas of their business through a process known as digital transformation.
While digital transformation intimidates many entrepreneurs, managers, and leaders, the technology and methodologies are likely already incorporated into areas of your business, and your team members probably have many of the skillsets necessary to make it successful. What is needed is a strategy and the tools that allow for the transformation of the business processes. Here we explore business areas involved in digital transformation and the digital tools that will help you reach your desired end state.
Pillars of Digital Transformation
Customer Experience Digital Transformation
As the most visible portion of a business is the customer experience. Therefore, the CX is uniquely essential for the success of digital transformation.
A customer’s ability to rapidly compare business and product attributes places pressure on companies to communicate effectively and offer competitive goods. Every aspect of promotion, price, product, and place are affected by digital transformation. As the public becomes increasingly accustomed to online participation, it is essential for businesses to transform the customer experience to meet their needs.
Operational Process Transformation
To effectively deliver a superior customer experience, businesses must have the operational processes to support it.
Process modeling allows companies to deliver increasing value at each stage or through each customer engagement. Digital tools and digital transformation enabled a better disbursement of information and improved collaboration.
Business Model Transformation
By combining the first two pillars, businesses are better able to take part in and respond to business model transformation.
Not only will organizations be able to change the very way they produce and deliver value to the market, but they will also be able to keep up with competitors who are working to dismantle entire industries. Disruptive innovation has completely altered industries such as travel, hospitality, banking, etc. By transforming your business, you will be better prepared to be a part of the disruption and respond to outside threats.
6 Digital Transformation Tools
The following 6 tools represent some of the most widely adopted and useful tools in digital transformation:
1. Cloud Computing
Businesses and consumers have widely adopted the cloud. The use of SaaS products, storage, and security features have led to significant growth in the industry. This tool is the cornerstone of integration and teamwork and is necessary for all other elements of a transformed business.
2. Marketing Automation
Marketing automation allows businesses to deliver personalized engagements to buyers without taxing staff resources. This set of tools enables the automation of repetitive tasks, but even more than that, it optimizes staff time and sharpens sales efforts.
3. Customer Engagement
Customer support anywhere, anytime, and on any device is the new standard. Business agents must be empowered to reach today’s mobile customers. Visual engagement tools provide customers with more personal experiences and allow agents to respond to customer issues around the clock more rapidly.
4. Internet of Things
The Internet of Things comprises devices with embedded technology capable of connecting to the cloud and transmitting data and events. The number of devices with a screen and internet connection is rapidly growing. Digital transformation will allow businesses to consider the best way to create or incorporate these devices and support them.
5. Data Analytics
Because more buyers are digitally connected, businesses have the opportunity to collect and utilize data. As companies look to take advantage of Big Data, one hurdle is the ability to process and analyze today's vast and growing volumes of business data in a timely and effective manner. New digital tools allow businesses to more efficiently comb through and analyze essential customer data to make decisions that improve products, promotion, and service.
6. Artificial Intelligence
Capitalizing on the information about user behavior provided by big data, artificial intelligence is the ability of a machine or software to develop human-like thinking. This thinking includes the ability to set standards, experiment, and make decisions. AI allows businesses to conserve human resources, provide a personal experience for each customer, and improve products.
Digital transformation is a continuous process improvement aided by tools. Creating a digital transformation strategy that encompasses all three pillars requires a cross-departmental effort, but it pays off in spades. Check out the digital transformation roadmap infographic to learn more about how to create your action plan.