Businesses are embarking on digital transformations that go beyond simple automation and cost savings to reach into new areas, revolutionising their business models and discovering new growth opportunities by taking advantage of leading-edge technologies to conduct business differently. In doing so, they’re enhancing their processes, their value propositions, and their relationships with both internal stakeholders and external customers.
Leading companies invest heavily in developing a sound digital transformation strategy, and the quality of that strategic approach is paramount to the overall success of transforming a business.
Even as the IT industry is rapidly evolving, it’s important to keep in mind that digital transformation is less of a sprint and more of a marathon. To maximise the efficiency of their digital strategy, companies must take the pulse of the competitive landscape and adjust their approach accordingly.
There are three ways innovative companies can mould their digital transformation strategy:
Business innovators need a platform upon which they can experiment and take digital risks, paving the way toward a digital user experience that generates enterprise value. The motivation behind many digital transformation initiatives is fear of being bypassed by the competition. Without a sound strategy, enterprises risk being outperformed and outdated.
Changes in business structure and the overall market can come in many ways and from seemingly anywhere. Therefore, it’s imperative for companies to be forward-thinking. Most simply can’t afford to wait or merely investigate what the competition is doing; they also must consider what the future has in store and assess what changes will occur in other industries that will inevitably permeate their own as well.
2. Know the customer base
Understanding the target customer base is essential to the development and implementation of a good digital transformation strategy. Companies can’t afford to operate on assumption. Often, when the way organisations do business changes, the target audience shifts as well. This shift requires companies to launch new digital initiatives rather than rely on a basic, non-specific digital strategy.
It’s a matter of being proactive instead of reactive to what customers demand, so it’s good practice to task research teams to study the needs and capabilities of users, or the spending habits and business decisions of potential customers. Identifying and addressing the preferences and pain points of the company’s target customer base makes it easier to work efficiently to design a stable digital solution.
3. Adopt and align the culture
Companies that undergo effective digital transformations understand the importance of creating the right culture to ensure the transformation continues to improve the day-to-day work while meeting milestones going forward.
There is no better example highlighting the importance of adopting and aligning the culture of a company than the hybrid IT solution, with its smooth transition from legacy platforms to cloud-based technologies. Making the decision and investment to migrate from physical hardware and software to a cloud-based business model indicates the realisation that the demands and needs of the customer are always changing as well.
Customer feedback loops and user group opportunities are a good way to explain and test digital transformations within a community. And, although the challenges are truly unique, adopting new ways of operating and embracing a new culture serve a company well in the future.
Digital transformation is about reducing cost and friction while using capabilities like automation, virtualisation, and optimisation to capture opportunities to maximise efficiency. Important tasks like performing maintenance, applying patches, administering the day-to-day upkeep of environments, systems, and process will be easier in the hybrid model.
This is the end state the IT world has been waiting for. Understanding how to make technology a true growth engine requires the right vehicle: digital transformation. The future will reward those players that have proven capabilities to work in a hybrid, balanced way that lets them address the ever-growing needs of their customers. Hybrid IT architecture, and the hybrid network at its core, are the foundations of digital transformation.
Stuart Mills, Regional Director – ANZ, CenturyLink