Last year we saw the most unpredictable digital transformation. More specifically, I should say that it was just a first step towards the complete transformation. If we consider completely changing the way we work or the tools we use, I think it’s still a long way to go.
According to a survey conducted by BCG, “Almost 90% of recent digital transformations have included customer-facing initiatives such as digital marketing, personalization, and streamlining the customer journey among their primary goals. This trend can be expected to grow as digital channels become more critical to business continuity.”
What is digital transformation?
Digital transformation changes the way you provide value to customers by integrating digital technology into every single area of your business.
It doesn’t only need tools/resources to digitally transform your operations but a cultural shift is equally important.
“We are approaching an important milestone in digital transformation investment with our forecast showing its share of total worldwide technology investment hitting 53% in 2023”.
Craig Simpson, Research Manager at IDC’s Customer Insights and Analysis Group
What are the different elements of digital transformation?
1. Customer Experience
To know your customers, it’s very important to have an internal system that manages & tracks their activity. You must have their data stored in one place which can be used to make the decision for a better customer experience.
Internal CRM systems are the best example of using custom behaviour to enhance their experience with your brand.
It helps you answer the following questions –
Which customers have a similar purchasing history?
Which services/products do they buy more often?
What are some of the frequently asked questions by them?
Is there a specific pattern in their buying behaviour?
And many more.
2. Products and Services
Digitising the customer experience has become a major priority now. You’ll find that companies are focussing more and more on selling an experience rather than a service/product.
To accomplish this, organizations need to find out different ways in which they can virtually stay in touch with the customers along the journey.
Giving employees the freedom to work from anywhere, anytime is the single, most important benefit of transforming your operations digitally.
We can streamline everything from the logistics to creating uniformity in the processing platforms and finally enabling employees to work from any part of the world through mobile platforms.
You can also digitise the complete organization by implementing all the points mentioned above. Usually, it is really difficult to digitise each & every part of the organization if everyone is not on the same page.
So, it becomes very important to start making small changes & building the culture slowly before the complete transformation.
What are the benefits of digital transformation?
“When digital transformation is done right, it’s like a caterpillar turning into a butterfly.”
– George Westerman (MIT principal research scientist and author of Leading Digital: Turning Technology Into Business Transformation)
1. Enhanced Customer Experience
Digital Transformation allows companies to enhance customer experience because they can engage with their customers in the channel they want to provide a seamless experience.
The goal of streamlining your internal systems is ultimately being able to provide outstanding customer service.
For example, you can see that a lot of companies have integrated their internal CRM with other tools. The main reason is to be in direct/indirect contact with the customers through a single channel (that they prefer).
2. Reduced Costs
The more you centralise your systems, the less you need to spend on deploying individual solutions. This saves a huge deployment cost & saves you hours of handling multiple systems.
Not only this but the cloud system saves you from huge expenditures when you transform as an organization.
Most of the tools that run in the cloud offer “pay as you use” principles to accommodate your services according to your business.
3. Better Analytics
Analytics helps you find answers to some of the most crucial questions of your business –
What are the customers searching the most on your platform?
What is the frequently raised query for your product/service?
What is the major reason some customers are dissatisfied?
Which customers are most active on your site?
What is the main objection of prospects who don’t buy from you?
Also, if you integrate all your tools, you can track each and every aspect of the customer journey in one place.
For example, if you integrate your CRM with any third-party application, you get a holistic view of how your customers experience your products.
It is similar to having a single place where you can analyse each and every factor that will make your product/service better for your end customers.
4. Increased Efficiency
You can use the saved time which was otherwise wasted in the manual processes to focus more on strategic implementation.
This ultimately results in increased productivity throughout the team.
5. Increased ROI
You are going to have a better ROI when you digitize most systems inside your organization.
The internal systems will be well-managed resulting in a better customer experience which ultimately brings repeat business. Not only this, targeting new customers becomes easier with a smart system.
6. Competitive Advantage
Speed is everything in business. If you bring new features faster than your competitors, you’ll automatically enjoy the first mover’s advantage here.
Companies who innovate are going to be way ahead of the curve. Finding innovative ways to do the same tasks is what makes some organizations turn into well-established brands faster than others.
What Should Your Action Plan Be?
While you focus more on digitization, it is very important to start with updating your existing models. Most companies these days are focussing more on modernising their legacy systems.
Brands like Decathlon & JCDecaux are getting ready for increased digitisation and remote working through modernised legacy systems.
Okay, but, first.
What are these legacy systems?
Legacy systems are your knowledge management/information management systems that are based on outdated technologies but are extremely critical for your operations.
The benefits include reduced costs, less maintenance & costs, improved compliance, increased security with more agility & efficiency.
If you want Toku to map all your business challenges and risk, create a detailed budget estimate, audit your existing legacy systems & analyse various modernisation strategies, feel free to get in touch.
We have helped more than 200+ companies in APAC with their digital transformation journey.
Don’t let your competitors enjoy the advantage of implementing their way through digital transformation before you.
Speed is everything.