Before I begin to tell you why we believe you need a digital transformation framework, I should probably explain to you what a digital transformation is for those that are new.
Digital transformation in simplicity is the implementation of new technologies to improve internal or external factors. Internal factors are cost-driven, and external factors are market-driven. For example, grocery stores implementing curbside pick up and delivery. They are trying to improve an external factor: their customer’s willingness to buy. An example of an internal, cost-driven factor is Domino’s testing delivery robots. If successful, they can save costs on delivery drivers and insurance.
However, though a digital transformation can change the trajectory of a company, successfully implementing and fully adopting one in your company can prove to be difficult without the proper framework.
What is a digital transformation framework?
A digital transformation framework is a process for how a company or organization goes about implementing and adopting new digital resources.
How do I know if my company or organization needs a digital transformation?
- Lack of efficiency and productivity.
- High operational cost.
- Lack of return customers.
- Lack of processes.
There are definitely more signs you can look for, signs such as a poor brand reputation and lack of customer interest and demand. However, the four listed above will usually be the root cause of all the others.
The exact digital transformation framework each company needs will vary, but there are still some keep components we should always have in mind when looking for a framework.
Benefits of a digital transformation
- Increased efficiency and productivity
- Better customer experience
- More return customers
- Increase employee satisfaction
- Increased profits
If successfully adopted into a business or organization, a digital transformation can have a lot of positive impacts. A 2013 Stanford study shows that the work from home model can increase productivity by 20%. In an Owl Labs study, 22% of full-time remote workers said they are happier in their jobs than individuals not working remotely. Lastly, workplace cost and benefits statistics, produced by Global Workplace Analytics, show that IBM saved $50 million in real estate costs by allowing employees to work remotely. Remote work eliminates the need for leases, utilities, insurance, supplies, repairs, furniture, and much more.
4 Steps to Choosing The Right Digital Transformation Framework
It would help if you understood where the future of your industry is headed. How will the best businesses in your industry operate in the future? Are there any new technologies in the working that could transform your industry? What is the public perception of your industry? What is the main cost factor in your industry? Also, what are the leaders within your industry or industries similar to your doing that your not? These questions can help you discover how you need to be forming your framework.
A digital transformation is no small task. It would be best if you did now a full audit of your business departments such as operations, finance, marketing, and HR. You are looking to see if any existing gaps within their processes are causing inefficiencies. What steps within their approach are taking the most time, is costing the most money, and ultimately negatively impacting their productivity and efficiency?
Based on your findings from the discovery and audit steps, you can now design your framework. It is essential to keep in mind that you don’t need to invent all the tools you require when designing your framework. There are already tons of tools to assist you with the transformation for all your departments. For example, Quickbooks, Xero, and Freshbooks can help to automate your accounting department. Google and Facebook ads can help to streamline your sales and marketing departments. Regarding operations and production, Asana and Zoho can assist you in transforming these departments.
Based on what areas of your business you want to transform, thoroughly examine the tools and software available to you. Ensure you consult with the employees and customers who will be most affected by these tools before deciding to implement them.
After you’ve found the tools and software to digitize your business, and consulted with the right parties, have the right individuals within your company or organization implement them. For example, your IT department will have to set up your team on the CRM. If you decide to work remotely, someone will have to ensure your business recourse and tools are available, most likely on a cloud for your employees to access. Maybe you’re transitioning from a traditional sales and lead generation team. If so, your marketing team will have to set up your Google and Facebook Ad Campaigns.
- Other Key Steps
Refine: These tools and processes will require supervision and refinement to get the best results. This is definitely not a setup and forget about strategy. Like any other part of your business, you will need to set KPIs to measure the success of this transformation and refine the process where required.
Protect: Based on your industry and the nature of your business, you will need to ensure that your information, your customer’s information, and your intellectual property are protected. For example, if you work within the financial, legal, or health industries, your employees will have access to sensitive, confidential information that needs to be protected. When thinking about your security measures, keep the following abbreviation in mind—Confidentiality, Accessibility, Integrity. You must be able to keep the information confidential while making sure it’s accessible to those who need it and ensure the integrity of the information.
As mentioned above, executing a digital transformation is no easy task. If you don’t currently have the team at your company needed to do this, tons of firms and agencies can assist you with this. If your looking for help, or simply have a few questions, don’t hesitate to fill out an RFP on our website, and we’ll get back to you shortly.