Digital transformation has the capacity to continuously impact how we work and operate businesses, large and
small. In this article, we’ll discuss why digital transformation is here to stay, why you shouldn’t be fearful of getting
started, and tips for adopting a strategy.
Originally published in The Partner Channel Magazine - Fall 2018
The technology industry loves buzzwords. I’m sure you’ve read countless articles about corporate synergy, big data, internet of things (IOT), and the list goes on. The articles claim that this buzzword is the next revolutionizing business strategy to ensure your success in a competitive world. However, it can be difficult to cut through the fluff and determine if the latest buzzword is worth your investment. Digital transformation may seem like “just another buzzword”; however, it’s so much more.
Before we jump in and cover why, let’s settle one thing: What is a buzzword? Google defines a buzzword as “a word or phrase, often an item of jargon, that is fashionable at a particular time or in a particular context”. Though digital transformation may seem like a perfect example, once you dig below the surface and understand the multitude of the term, you’ll see that digital transformation, while fashionable right now, is not limited to a time or context.
Digital transformation has the capacity to continuously impact how we work and operate businesses, large and
small. In this article, we’ll discuss why digital transformation is here to stay, why you shouldn’t be fearful of getting
started, and tips for adopting a strategy.
DIGITAL TRANSFORMATION IS HERE TO STAY
It can be difficult to determine if digital transformation is worth investing the time and resources required to create
and execute a strategy. The term, digital transformation, seems foreign, but in reality, it has been around for many years. Arguably, the reason there is emphasis on it now is because it’s predicted to have the largest impact in the next few years.
Digital transformation means different things to different people; however, according to i-SCOOP, “Digital transformation is the profound transformation of business and organizational activities, processes, competencies,
and models to fully leverage the changes and opportunities of a mix of digital technologies and their accelerating
impact across society in a strategic and prioritized way, with present and future shifts in mind.”
Think back to entering the world of enterprise resource planning (ERP). ERP and accounting systems were only
adopted by advanced and innovative companies that realized the benefits of electronic databases. The ERP industry was a pioneer for technological change, and we can’t even imagine running businesses without ERP systems. Digital transformation is exactly that, a way of improving business operations using technology.
Companies Investing in Digital Transformation
Top companies are investing in digital transformation strategies. Gartner predicts a 6.2 percent increase in global
IT spending in 2018 and continued growth in 2019. As you consider your options, we can look to other companies’ successes and failures to make informed decisions for your business. Companies are making huge investments to future-proof their business, and so should you.
Music festivals, cruise ships, and amusement parks are using IOT wearable devices like wristbands to track
personal information such as emergency contacts or cabin number, payment information for food and beverages,
and of course, location. This keeps customers safe while improving the overall experience with convenience.
According to TechRepublic, Home Depot initially budgeted $300 million on software that would allow customers
to buy online and pick up purchases in-store. After six months of planning, the project was estimated at $1.5
billion—something I’m sure you can relate to when selling ERP systems. Now, more than 40 percent of Home
Depot’s online orders are picked up from stores. Additionally, revenue increased by seven percent, attributed to
their new integrated customer experience.
Companies like Domino’s and Uber Eats have invested in user-centric technology to inform users on the status
of their food and delivery. Domino’s uses its Pizza Tracker that allows users to see when the pizza is ordered, being made, and in a vehicle for delivery. Uber Eats uses similar technology that allows users to see when their food is being made, when a driver picks it up, and when it’s at their address.
Although you’re probably not deploying wearable devices or a Pizza Tracker in your business anytime soon,
you can see that there are many approaches to executing a digital transformation strategy. What is right for some
companies may not be right for you, but it is in your best interest to start strategizing and aligning priorities.
THE FEAR OF GETTING STARTED WITH DIGITAL TRANSFORMATION
As humans, anytime we experience major change, we have a fear response such as nervousness and
apprehension. These responses are to keep us out of danger, but it may have the opposite effect when it comes to digital transformation. I wouldn’t be completely fearless, though, and jump in without careful planning. You want to avoid developing a strategy that will make you fall behind your competitors. As more and more companies are implementing creative strategies to automate and integrate different areas of the business, staying the same will be deadly as those companies gain a competitive advantage.
Think about it: As a technology Partner or developer, clients expect you to be the expert on the latest technology.
Many digital technologies require an ERP integration to connect machines or devices to the main database. To be an expert, practice is a necessity. It’s easy to put off your own digital transformation because your operations don’t need to be “fixed”. However, your clients will be looking to you for advice on their own transformation. Don’t let your own fear stand in the way of becoming an expert.
TIPS FOR ADOPTING DIGITAL TRANSFORMATION IN YOUR COMPANY
How do successful organizations become successful? It’s not one great idea or a stroke of genius like many think; it’s an evolution of innovation and hard work. It’s a person or a group of people working toward a goal, working tirelessly, and never quitting even when dealing with failure. Ask yourself, what do all these organizations have in common? They simply start and keep working. I’ve put together a list of tips to consider when creating and executing a digital transformation strategy.
Educate Yourself and Gain Buy-in from Key Stakeholders
First and foremost, you must educate yourself on digital transformation. Take time to learn how others are
adopting it—including your competitors and learn from other’s failures and successes. It’s never a good idea to
do something because others are doing it, so consider your options and don’t rush into anything. Prepare yourself for questions when talking to employees and stakeholders. Before anything can happen, you’ll need to gain buy-in from key stakeholders including your company’s C-suite and board. Using the knowledge you’ve gathered, you can present your plan for adopting a strategy.
Create a Formal Plan
After you have buy-in, you need to create a formal plan with key stakeholders. The plan should clearly define your goal, department and individual involvement, timeframe, budget, etc.
Define and Measure Success
One of the major pitfalls during the digital transformation process is not knowing what success looks like. You
must have a clear picture of success and have key performance indicators to support that picture.
Execute Plan and Fail Fast
It seems redundant to say, but you must actually execute on the plan. During this time, fail fast and don’t jump
to conclusions about success. Remember, you need to give your plan adequate time, but don’t hesitate to make
changes and stay agile. If you don’t see the ROI you are looking for, make sure to extract key learnings and move on.
Digital transformation is an ongoing evolution of business processes. It’s not something that will happen
overnight, and it will take a tremendous amount of work to succeed. Keep your eye on trends and don’t rush into a strategy without being prepared. Digital transformation isn’t going anywhere and has the potential to increase your revenue year over year. The key is investing in a winning strategy that provides value to your business, but that’s not as easy as it sounds. Whether you’re ready to start implementing or just starting to learn, one thing we can agree on is that digital transformation is our future.