Digital Transformation Framework

Posted on May 24, 2018

Customers and employees flock to businesses that operate with a clear direction and respond to market needs. Companies provide clarity and define the way forward by leaning on a vision and developing a roadmap. Without a strategy, companies might still successfully focus on solving problems, but they fail to create continuous value for the customers.

Yet, most companies still do not have a clear digital strategy. This reality challenges businesses, as technology increasingly intertwines with the core components of companies, industries, and societies. New digital solutions offer organizations the opportunity to compete and create a foundation for efficiently meeting customer demands.

This post outlines a digital transformation framework for developing a digital vision and building new business models based on digital opportunities.

Digital Transformation Framework

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Adapted from Cognizant’s Digital Transformation Framework

Customer Experience

Customer Insight

Reaching and retaining customers requires a business to know them. Organizations can link specific consumer preferences to potential buying habits using information derived from social media and other online activity. Every action that consumers take, in both the physical and virtual worlds, contribute to a digital footprint and fosters data that helps a business better serve an audience.

Digital Marketing

Today’s customers do research and make purchasing decisions online. To be competitive organizations must provide up-to-date product information and engage with customers. Since customers are increasingly active and identifiable online, organizations can apply customer insights to digital marketing practices. Businesses can then use tools to personalize product and service promotions to attract and retain ideal customers.

Omnichannel

Omnichannel communication and service are vital to reach increasingly digital customers and achieve business success. It is no longer a question of whether your business should be online, mobile, and available across multiple channels. Instead, consistent and efficient interactions throughout the buying cycle are now a requirement.

Products & Services

Connected Products

As organizations use more sophisticated methods to communicate with and get to know customers, expectations also rise for similarly tailored product and service offerings. Businesses can be successful in meeting this call for innovation by breaking up products into smaller pieces and rebuilding with the specific parts that are relevant to the needs of the customers. Such “mass customization” is generally thought of as a component of software and service. However, these concepts are being adopted across all industries as a result of digital technology.

Predictive Usage

When a business analyzes customer behavior online, it is possible to predict their usage and their level of satisfaction. Companies can then anticipate customer needs before the customer realizes it and before an issue happens.

Pay-Per-Use

Customers are informed and have constant access to competitors. As a result, they no longer feel compelled to pay for products or services they don’t want or need. They only are willing to pay for what they use, requiring organizations to respond in kind.

Operations

Customer-Centric Platforms

Advanced digital technology can improve business processes. These standardized and customer-centric platforms make it easier to globally source processes, leading to cost reductions and enhanced and consistent customer experiences.

Agile Approaches to Work

When processes are automated, standardized, and globally sourced, businesses are more agile and responsive to change. As a result, they are better able to increase and sustain profitability. This agility is essential. Beating competitors often comes down to an organization's ability to respond and anticipate fast-changing market developments through human intervention when AI and automation are not fully able to address the change.

Anytime, Anywhere, Any Device

Organizations need to enable to employees the flexibility to work anytime, anywhere, and on any device. When businesses have adopted agile practices, product development and organizational transformation happen more quickly. New products and software are developed and implemented more quickly, and organizations can transform at the same pace adapting to continuous, sudden, and rapid change.

Organization

Dynamic Partner Ecosystems

Digital systems allow partners to work more closely together. Organizations have the opportunity to either shape an ecosystem or provide a niche product designed to add value to the CX as part of an existing ecosystem.

Digital Skills & Virtual Workforce

In an integrated ecosystem, employees must break down silos and collaborate across departments. Geographically dispersed employees need collaboration tools to share documents and knowledge and provide the business with enhanced value. Corporate cultures also need to move toward a digital mindset. Innovation must be rewarded, and digital expertise must be brought in to help employees embrace this new world and gain the necessary skills.

Digital Collaboration

Digital collaboration stretches beyond employees. Partners co-create products and customers provide opinions and suggestions for product improvement. Enabling digital cooperation internally and externally will provide valuable insight into the product and the market, benefiting both customers and businesses.

This framework illustrates how the process of digital transformation could look in an organization. It provides a starting point for ideation. Each element of the framework should be analyzed to ensure complete consideration of all relevant digital opportunities and the ability to implement them.

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