What is Digital Transformation: definition, examples, strategy
Starting from 2020, more and more companies are embarking on digital transformation, but 94% are facing entrenched barriers to it.
Why is it so hard to undergo a digital transformation if it’s everywhere? Do you feel like you are among that 94%? And what does it take to optimize and transform your business successfully?
We’ll get to that in a minute, but first, let’s start with the digital transformation definition because if we don’t know what this is, how do we know how to achieve it?
What is digital transformation?
Digital transformation is the implementation of digital technologies to optimize the company’s processes, improve customer experience, and meet changing requirements in the market. In other words, it’s how flexible, agile and competitive your business can be in the digital era.
Digital transformation is a catchall term that includes notions like digitization and digitalization. The former means the shift from analog to digital approach in storing and managing data. Meanwhile, digitalization is about using digital data to simplify interaction and work with customers and within a company, for example, with the help of CRMs and chatbots.
A lot of same-rooted words can be confusing and intimidating. But don’t worry, companies passed the digitization stage a long time ago. Everybody saw that it’s easier to type and hit the search button rather than spend several hours looking for a file in a vault.
Nowadays, digital technologies are on your side, and all you need to do is link them with your product. Being digitally agile and compatible is easier than you think. So let’s look at high-profile examples of digital transformation and see what is the best for your business.
Digital transformation examples
The one that comes to mind first is Netflix.
They started as a DVD rental company in 1997 with few chances to beat Blockbuster. But thanks to the proper evaluation and digital transformation, Netflix is now one of the US’s top production and streaming services.
How did they achieve it? As you can see from the timeline, Netflix timely implemented new technologies like launching their website or introducing streaming services on desktop and mobile devices.
Their investments were aimed not at speeding up the old approaches but at making the most of the existing technologies. Basically, by digital promotion and transformation, Netflix reinvented the old DVD rental business.
Another technological makeover was done by Domino’s Pizza. Reevaluation of their digital course and vision allowed this company to speed up the ordering process.
Their mobile app gave their customers an opportunity to place and track their orders from any location. As a result, this fast-food company has transformed itself into a successful tech-driven restaurant, which made growing their retention and acquisition rates possible.
Undoubtedly, digital transformation can make customer care run more efficiently, but what kind of changes can it bring to your customers’ experience? Through its tech journey, Nespresso has proved that the right choice of tech course can get customer service to the next level.
In their attempts to be more agile and compatible, Nespresso deployed a cloud-based customer relationship management (CRM) system. This remodeling benefited the company on several levels.
- First, it knocked down the walls between company departments, making their work more organized and client-centered.
- Second, it created omnichannel access to the shop. Regardless of the device or lack thereof, clients can make their purchases by visiting the website, store, or mobile app. This digital glow-up gave Nespresso the ability to get closer to their customers.
- By making buyers’ interaction with the brand more personal, they managed to generate more quality leads and expand the pool of loyal customers.
The last digital transformation example that all progressive companies start with is social media. It’s an affordable and popular time-saver to test and evaluate your brand’s possible digital direction.
Digital transformation strategy
The above-mentioned examples prove that digital transformation is advantageous in the long run. However, you need to remember that it’s not a one-time venture (just look at Netflix constantly searching for new tech opportunities!).
Forbes reminds us that 70% of all digital transformation initiatives don’t reach their goals. Of the $1.3 trillion spent on it in 2018, $900 billion went to waste. So how is it possible to live in the digital era and not know how to incorporate technologies right?
It’s all about the wrong digital transformation strategy.
A working transformation begins with a set of digital business model objectives that varies depending on the company’s values, vision, and positioning. There are 6 steps that will help you create a successful digital transformation strategy:
- Know your target audience, current capabilities, and your brand’s position in the market.
- Analyze the existing and developing digital trends through the prism of your company’s values, business model, and brand promise.
- Analyze the risks of potential digital transformation and where they can come from.
- Identify and analyze the main pain points in cooperation with your main departments.
- Reflect on your previous and future roadmaps. Where do you see your company in the future? Which position does it occupy in the minds of your prospects and the market?
- Pay attention to Silicon Valley start-ups if you want to be ahead of your time. Technological discoveries and breakthroughs won’t knock on your door. You need to look for them and know where to find them.
After you get familiar with these universal steps, crafting your digital transformation strategy will be a piece of cake.
Why is digital transformation important?
According to Dell’s Digital Transformation Index, 89% of companies say that the pandemic has shown the need for more agile/scalable IT to allow for contingencies.
Progressive companies understand that properly executed digital transformation guarantees a number of benefits like:
- Increase in acquisition and retention rates
- Extraction of valuable insights from data
- Better alignment and collaboration across your company
- Enhancement of the skillset and digital culture within your organization
- Leading positions in the market
More importantly, technologies will continue developing, and not keeping up with them leads to extinction.
In most cases, digital transformation is an intricate process. But all successful companies agree that CRM is a must-have for any business that wants to optimize its work process within and outside their company.
Here at Snov.io, we offer a basic set of tools and even more! Snov.io CRM’s integrated email services like Email Finder, Email Verifier, and Email Drip Campaigns make lead management easier and faster than ever before!
It’s an easy and perfect start to your digital transformation 🙂