There is a difference between digitization and digital transformation. Digitization is updating your business technology with new, current technology (technology transformation). It’s a little harder to define digital transformation, but the difference lies in the purpose.
What does digital transformation mean?
Digital transformation means you integrate technology into a business with the explicit goals of innovation and maximizing the potential of your company through technology.
For example, companies offering digital transformation services might help you upgrade your marketing process using chatbots and automated campaigns. This not only brings in more leads, more customers, and more money, it also improves customer service while freeing up your time to focus on growing your business. It’s called digital transformation because it transforms the way your whole business operates.
If you want to start on your digital transformation strategy, there are a few things you need to know beforehand.
What would you do as a startup?
Every day we hear of new startups, and they’re all set to be the next big thing. That’s because they designed their business model and the way they approach their target audience for today’s consumers who more often focus on the digital world where it’s estimated that 75% of British consumers will shop online by 2021. These companies do not need to focus on digital transformation, because it’s what they do already and what they have done from day one.
Whereas companies that have been established for longer, there is a need to think about how it’s possible to leverage technology to allow their business to adapt to modern ways of working and customer interaction. Therefore, the question to ask is – If you were starting your business today, how would your technology be different?
As difficult as this question may be, it’s a critical step in helping you understand where the flaws are in your technology and how to start your digital transformation strategy.
KPIs are vital
If you’re hoping to transform, you need to be able to measure the success of the changes you implement. How else will you know if you’re making the right decisions?
You need to look at the right KPIs, however, these will differ from business to business depending on your goals. If you want to increase sales, perhaps you’ll look at your lead generation stats, sales figures, or average cart size. Whatever it is, use it to keep track of your transformation.
Keep an eye on your competition
We are at a point where new ideas are quite often few and far between. Still, two companies offering the same product and service can differ vastly – be that quality, price, or customer experience. It all depends on how you make your business unique.
Seek insight into how you can separate yourself from others, what IT digital transformation works, and which technology isn’t having the desired impact and why. You’ll be able to learn from any mistakes and get ahead as a digital transformation company.
Pre-planning how to transform digital technology in your business and use it to continue business growth is just as important as having a comprehensive digital transformation strategy. It could be the difference between success and failure.
To read more on the subject of digital transformation, read our earlier blog in this mini-series: What is Digital Transformation
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