Digital transformation is a vaccine for business against Covid-19
When I hear ‘digital transformation’ (DX), it gives me shudder. The phrase is so overused these days that it is difficult to make yourself care. The problem is that companies still should care because, well, there is a new reality out there. We haven’t chosen it, but it is here to stay. That is why we either adapt or die.
So what exactly this buzz phrase means?
In general terms, going digital means applying technology into some or all aspects of a business in order to change the ways business operates and delivers value to its customers. But what does this exactly mean for your(!) company? For some, especially those in retail, it means moving part of the business online by starting an e-commerce website or via numerous shopping platforms, like Amazon. But for many it also means automating operations, going paperless, or even applying the state-of-the-art artificial intelligence tools. But beyond that any transformation is not only about software, technology and tools. It is always about people. About culture. About experiment. If put this way, it now sounds like an adventure rather than a necessity. [Click here to Tweet]
Where to start?
By nature, most people are conservative. So are their businesses. We have hard times embracing change, let alone initiate and implement it. I bet you often go to the same grocery stores, ride to the office using the same route and more often than not buy clothes from the same set of brands. This happens because all of them are familiar to us and being caught in the middle of uncertainty sounds like a bad idea. As it is hard to select a new route to the office, the same it is hard to start questioning your status quo and challenge your long-standing business processes.
So first it is worth realising that change is inevitable. Like I said, it is either adaptation or irreversible decline. Second, the ‘why’ of your organisation’s digital transformation should be clearly stated: are you doing it solve a problem, to achieve some major goal or grasp a golden opportunity? Third, a successful digital transformation is a top-to-bottom process started by company leaders. It is a leader, not a boss, to built DX into company’s vision and drive employees to larger, long-term goals. “Our experience suggests that, regardless of the circumstances, real transformation happens only when a leadership team embraces the idea of holistic change in how the business operates — tackling all the factors that create value for an organisation, including top line, bottom line, capital expenditures, and working capital. This is easier said than done. Ordinary approaches to transformation typically deliver ordinary (and often suboptimal) results.“ — states a report by McKinsey.
Technology as enabler not a driver
A study by Deloitte Insights conducted in 2020 found out that “greater digital maturity is associated with better financial performance. The higher-maturity companies in this year’s sample were about three times more likely than lower-maturity companies to report annual net revenue growth and net profit margins significantly above their industry average — a pattern that held true across industries.”
But the real question is whether your business should be driven by technology. No doubt, it would be fun to apply data analytics in your organisation but using it with no particular goal might be a waste of resources. One of the most outstanding examples is Procter & Gamble. In 2012, consumer packaged goods giant Procter & Gamble set out to become “the most digital company on the planet.” They sought to bring its digital transformation to the next level. This resulted in a large number of various initiatives with no particular miserable goal in mind. Add a fragile economy to the equation and you’ll see why P&G faced problems from the start.
So it is technology and software that are packed inside new business models and culture and not the other way round.
6 steps to move faster with your(!) DX
- Start with a vision, goals definition and plan
How can DX help your particular business to grow? Do you need technology to gain more customers, compete better, reduce costs or be more productive to achieve all of the above? There’s no one-fits-it-all solution out there but for sure there is one to help you with your particular goals.
2. Create or reorganise your organisational structure
Defining roles and responsibilities is crucial to support business processes. Since there might lots of dependencies between departments (even as small as one employee), miscommunication could be the greatest blocker on the way to successful DX. Many companies are focused on developing a digital strategy when they should instead focus on integrating digital into all aspects of the business, from channels and processes and data to the operating model, incentives, and culture.” says McKinsey. From a strong leader to department heads to external employees and vendors, all should be responsible for executing the DX plan.
3. Reconsider old and establish new processes
How does your business operate daily? What are the workflows between the departments and people? It would be really hard for me to answer these questions if I had to do it all at once. So, I suggest starting from the most vital or at least the least obscure processes, brainstorm with my team and visualise them. It is not necessary to fully automate a process but in the era of remote work it is vital that you have a single source of information about your operations. You can then spread technology across other areas. We, at MyDone, are happy to help streamline your workflows with simple and easy-to-use solution.
4. Invest into the right tools
As I have already said, technology should not and cannot be an answer to all of the company’s problems. I’ve been working in tech business for 14 years and I believe that the best applications are the ones that seamlessly integrate into your processes, are designed to solve the exact problem a customer has and you never have to spend a minute to tackle the technology itself.
5. Empower your remote employees
We no longer work shoulder-to-shoulder and this changed the way we communicate. I can no longer ask everyone in the room if someone remembers where that document was. Asynchronous communication is now new normal. So, getting an instant answer from your colleague is no longer an option in most cases. Instead, having a single accessible information source might save your organisation tons of time.
6. Get your customers and vendors involved
On the way to build a successful business, we daily have work not only in-house employees but also customers and vendors/freelancers. Bringing all parties involved into a single workspace might bring faster result, better customer satisfaction and, thus, higher profit margins. One of the design agencies I know always invites their customers to the task board. This brings more transparency into the process and enables faster feedback. Thus, a satisfied customer brings more work back to you. Or take for instance a small clothes retail shop. They outsource their social media marketing to a local agency. Business owner can track all of her team’s and agency activities from a single view. This way she aligns the timelines, unifies team tasks with marketing strategy and tracks KPIs.
Conclusion
Even though digital transformation is a buzz phrase these days, it has become a must for any organisation that plans post pandemic recovery and growth. But rather seeing as a dull and necessary process, business owners should see this as an opportunity to increase customer satisfaction, employee engagement and focus on growth and innovation.
