Digital Transformation Strategy

March 14, 2022




Digital Transformation Strategy

With the continuous emergence of new IT technologies, the world is changing quicker than ever before. Organizations experiment with groundbreaking digital innovations and try different approaches to progress in their business and offer opportunities for the digital economy. In this article, we will consider the meaning of digital transformation (DX) for your business, and reveal tips on how to build an effective digital transformation strategy to support your workflows.


  1. What Is Digital Transformation?

Digital transformation is the implementation of digital technologies used to remodel the company workflow for the sake of increased efficiency with the help of the digital economy. Most often, this entails the introduction of IoT, AI, big data, and migration to the cloud. However, the shift in the corporate culture is as important as the tech revolution. Companies are more open to inviting changes into the way they conduct their business. Internal processes, business models and strategy, customer experience — all these spheres undergo adjustments as well. As a result, businesses increase their productivity and become more competitive.

The rapidly changing market caused by the pandemic has made it necessary for companies to quickly adapt to any interruption of the production process or alterations in client requirements. Under unpredictable conditions, the use of technologies has become a necessity. Top performers in different industries understand the true value of digital transformation and do not underestimate the importance of constant change. They became trendsetters in their sphere, and other companies try not to fall behind.


  1. Why Does Digital Transformation Matter?

There are plenty of reasons why businesses may want to try digital transformation in order to remain competitive in their industry. Let’s consider the most significant reasons to try digital transformation.

  • Better data aggregation. Chaotic data is useless, and it becomes valuable only when properly organized. In such form, it is prepared for analysis and processing, on the basis of which insights can be generated for better decision-making. In addition, digital transformation enhances the confidentiality of sensitive data and helps protect clients against cyberstalkers.
  • Wiser resource allocation. DX helps consolidate all the assets you have at your disposal. When your resources are not scattered at random but are gathered in one place, it simplifies the management process significantly and increases the safety of personal data as well. The innovative approach integrates apps, programs, and databases so that their operation can be aligned and they can be in sync with each other.
  • Better understanding of clients. With comprehensive data analysis, you can get a better grasp of client needs and desires. Based on the dynamics of customer activity and their preferences, you can shape your future marketing tactic and adjust it according to any changes that may appear over the course of time. Personalization and agility are the keys to creating more client-oriented strategies and driving more profit.
  • Customer-focused approach. Digital transformation assists companies with upgrading the customer experience (CX). CX is one of the focal points that companies devote attention to in order to outcompete their rivals. Thanks to cutting-edge digital services, improved communication tools, and trouble-free website performance, it becomes easier to win over the hearts of clients.
  • Cultural shift. Because it empowers teams with effective instruments for improved collaborative efforts, DX promotes innovations in the company’s culture. All staff is given reliable means of communication. With the popularization of constant training and education, companies invite technological change and innovation for increased productivity and revenue growth.
  • More gains. When you introduce digital transformation into your organization, improved efficiency and increased sales will not be long in coming. This happens due to the optimization of workflows, better allocation of resources, and improved marketing strategy based on thorough data analytics.
  • Flexibility. When companies are more agile and flexible, they release products more quickly and strive to always find new ways of enhancing their potential. Thanks to DX, more innovations appear in company workflows, which is reflected in productivity, customer satisfaction, and revenue.
  • Increased industrial capacities. With digital instruments working coherently together, it is possible to greatly rationalize and modernize workflows. Consequently, you will have more effective processes empowered with technical innovations that drive digital transformation.


  1.  How to Build a Digital Transformation Strategy?

DX is not just the adaptation of top-notch technologies and allocation of resources into expensive equipment. Most importantly, it is the extensive shift of consciousness towards innovation and new ways of conducting business. It involves several significant steps.

Let’s first take a look at the major areas in which you should develop profound expertise before you start building your digital strategy.

To ensure smooth transformation processes, you have to be aware of the potential benefits and risks of each innovation, make thought-out decisions and try to execute all needed changes fast. When organizations do not have a clear view of the processes that take place during transformation, they won’t be able to set priorities when needed and solve emerging problems.

Another critical factor is comprehensive data analysis that will provide you with valuable insights on important steps. Agile attitude is pre-eminent, while digital transformation is a continuous and lengthy process, which will affect your business tremendously and lead to great metamorphoses requiring quick adjustments.

Knowing all of the above, you can start creating your own strategy. The major steps are as follows:


      • Ensure collaboration.

Before you start creating a digital transformation strategy, it is important to make sure that all the stakeholders are on the same page and ready for the transition. You should not overlook this step, as the change will impact all parts of the business and all its areas of activity; therefore, ensuring all actors are aware of the processes and what they need to do is a necessity.

        •  Allocate resources.

The next step is to decide how much money you can devote to the implementation of innovation. Remember that it is a long-lasting endeavor that will influence all your staff and clients similarly. So, budget formation is crucial in order to create a wise management policy that will ensure equal resource distribution to all the spheres of activity.

        • Evaluate the present state.

The foundation for your strategy is the correct estimation of how your business operates at the moment. You should take into account several indicators, such as cultural peculiarities, employees’ skills, the structure of the organization, existing possibilities for development, as well as limitations and disadvantages that can throw a spanner in the works.

        •  Provide clear goal-setting

The next stage is to define your objectives of digital transformations: what are you going to attain for your business, personnel, and clients in the long run. It is also useful to divide your goals into short-term and long-term goals and determine a period within which they should be achieved.

        • Convey the needs assessment.

It’s time to specify what has to be done in order to reach the transformation goals for the business. It may be acquiring new machinery, hiring new staff, providing training and instruction, establishing new processes, and trying new technologies.

        • Set a detailed plan.

Once all the above steps have been made, it becomes easier to outline the primary goals and create a plan to achieve these. Decide the areas of the main focus, the instruments and resources, the responsible parties, and the time constraints. Remember, the plan should be flexible and open to any changes.

        • Beware the possible hurdles.

Although you may have created an elaborate plan, not everything is going to happen accordingly. You may encounter the following obstacles:

          • Unreadiness for transformation. Either staff or clients can be unwilling to take part.
          • Insufficient skills. Profound experience is needed to carry out the smooth transition to new technologies.
          • Lack of data-driven approach. A thorough analysis will help you save money and make effective decisions based on gathered information.
          • Inattention to the current situation. To introduce relevant improvements, any changes should be a consequence of careful consideration of the present state of company processes.


4.  What Does a Digital Transformation Framework Look Like?

As a plan of transition during the time of changes, the digital transformation framework is the basis of how the company strategy can evolve according to the changing business conditions. The processes of transformation can differ from company to company, varying according to business needs. Nonetheless, there are key pillars that all companies can use to build a strategy for a progressive makeover. Here are the most useful components of the transformation framework, used by most companies in some form:

      •  Agile working processes
      •  Enhanced management
      •  Organizational culture
      •  Flexible approach to change
      •  Executive education
      • Well-trained human resources
      •  Software usability
      •  Improved client service
      •  Aligned digitization activities
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