Digital Transformation Strategy
Digital strategy and transformation require the use of modern technology. Often, such a transformation is accompanied by a radical change within the company. This is because the underlying technology is not the only crucial factor. Equally important is a sophisticated digital transformation strategy that is compatible with the individual corporate strategy. By introducing digital transformation strategies, it is possible to implement the new technologies into the company and promote growth according to its specific needs.
What is a digital transformation strategy?
The digital transformation strategy is the basis for digital transformation at company level. It deals with which initiatives to prioritize and identifies the individual success criteria.
Although creating a digital transformation strategy is not easy, it is always worth the effort. This is because the clear definition does not focus on one’s own industry, but on the key areas of the company. These include the following aspects:
- Customer experience: modern technology can help improve the customer experience. Customer loyalty and retention play a key role here.
- Employees: Technological progress not only improves the customer experience. Employees in particular benefit from better performance and improved collaboration. The additional skills development increases employee satisfaction.
- Data analysis: In digital transformation, IT strategy is an important aspect for successful execution. The analysis of existing data provides excellent insights into the current situation of the company. At the same time, future business goals can be derived from it.
- Competition: Legacy systems and obsolete technologies contribute to companies losing their competitive edge. Therefore, in such a scenario, the question arises: How to build a digital transformation strategy that implements new and improved business processes? This examination of improved processes is necessary in order to exploit the company’s own potential and uncover new business opportunities.
Key components of digital transformation processes
Digital transformation platform strategies are not exclusively concerned with modern software solutions. Rather, it is the interplay of hardware, software and the network that helps the company achieve the best possible alignment. Regardless of what the company’s goals are: The following components are considered key aspects of the digital transformation strategy.
1. Cloud computing
Anyone studying the topic of digital business transformation strategy quickly comes across the term “cloud computing”. These modern applications allow the company to disengage themselves from existing legacy systems. Flexibility and scalability in particular play a central role here. Classic examples that are already facilitating everyday life at the enterprise level are Slack, Google Drive or Office 365.
2. Mobile applications
Mobile applications are another important aspect of the digital transformation strategy. The constant availability of mobile devices is also becoming increasingly important at the business level. Therefore, solutions that support these devices are a good choice. For the sales or HR digital transformation strategy, a focus on mobile applications can be of utmost importance. One of the reasons for this is that portable devices can be easily used in the field, when visiting customers or at trade fairs.
3. The Internet of Things (IoT)
The IoT (Internet of Things) connects data, people and devices. This enables and drives the automation of processes. It doesn’t just provide services like those offered by voice assistants like Alexa or Siri. Instead, the IoT represents immense opportunities to improve and streamline internal workflows.
4. Artificial Intelligence
The implementation of artificial intelligence (AI) complements the modern digital transformation strategy. It is an important component to drive business growth and perform analytics. However, this requires a comprehensive data set, which is the basis for this technology.
5. Augmented and Virtual Reality (AR and VR)
The combination of virtual and augmented reality is becoming increasingly important at the enterprise level as it offers more immersive capabilities. Software solutions such as Engage and Frontline are already presenting themselves as exceedingly suitable for everyday use. They can be used to take digital transformation to the next level, while equally supporting the day-to-day operations of the manufacturing sector.
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Digital Transformation Strategy: 4 steps for successful implementation in your company
Companies looking at digital strategy vs digital transformation quickly realize that the two go hand in hand. The digital transformation strategy is the central basis for all considerations. It forms the basis for the necessary digital transformation strategy steps, which can then be integrated into day-to-day business. The following steps are particularly important.
1. Business assessment
The digital transformation strategy framework starts with a business assessment. A close look at the current business helps to identify strategic goals and potential growth opportunities.
2. Competitive analysis
An analysis of other companies enables direct comparison with competitors. Are there pioneers in the industry who have already had good experience with digital transformation? What tools and technologies are they using? Understanding the market helps to better assess one’s own possibilities and to take the right path.
3. Prioritize digital initiatives
What exactly the individual digital initiative looks like depends on numerous factors. That’s why it can make sense to consult a consulting firm to create the digital transformation strategy. Return on investment, resources and scope are crucial aspects to consider. At the same time, they must be weighed against the estimated effort and internal impact.
4. Create delivery, budget and resource plans
Digital transformation often fails because the budget is too low. It is therefore necessary to make the plans in advance. Companies should take into account possible delays as well as their own requirements and the possibilities of measuring success.