DIGITAL TRANSFORMATION: WHY IT IS A MUST FOR TODAY’S BUSINESSES
There are companies that had hit rock bottom, deemed done to death, and yet have successfully bounced back to the claim a victorious spot. For these companies digital transformation have played a crucial role in helping resurrect themselves make a successful comeback in the market.
It’s not just the new businesses, even well-established ones such as Microsoft and Nike, too are implementing digital transformation strategies to boost revenue, manage competition and achieve growth in the industry.
If there is one concept that’s acting as a linchpin for the growth of modern businesses, it has to be digital transformation.
The term ‘digital transformation’ is not to be taken in a literal sense. It is not, what most people conceive it to be, just modernizing your businesses with the latest digital tools. It is more about how you understand, operate, and deliver unique value to your customers using the right digital technologies.
Going digital means you are rearranging the blocks of your business, but this time you do it with relevant technologies at its helm. For example, if you have never had a mobile app built for your product or service, getting one is a good way because the majority of buyers live in the mobile landscape.
Simply put, digital transformation is inevitable, and an absolute necessary for modern businesses.
Characteristics of Digital transformation
Digital transformation is not definitive and it can mean different things for different companies, however, there are some characteristics that are common.
An Agile Technology Foundation
Many companies lack the relevant technology needed for a pure digital transformation. Agile technology is one main aspects that sets apart a digitally transformed business from a traditional one. Digital transformation is about future-proofing your business for continuous changes, industry trends and new technologies.
An agile approach offers great flexibility, continuous improvement, cost control, transparency, risk reduction, great collaboration between teams and higher visibility to the business.
The on-demand expectations of consumers are growing and businesses are quickly shifting to mobile connectivity, mobile apps, artificial intelligence and other forms of mobile infrastructure to meet all their demands.
According to a survey carried out by Stone Temple nearly 42% of consumer’s total time spent online is on mobile devices.
So, when buyers, users, or any potential customers are shifting towards mobile technology, it is imperative for businesses to follow suit to retain customers and create an edge to their competitors. Thus, having a sound mobile solutions for your product or service is highly important and it serves as one of the important pillars of digital transformation.
Businesses have come to realize that cloud technology is critical to digital transformation. Businesses using cloud work at a different level – they are flexible, dynamic and fast. By coupling big data analytics, web apps and mobile app solutions to cloud you can create a brilliant 360 degree view of your customer.
In the quest for successful digital transformation, businesses are well on their in leveraging the power of cloud. According to Flexera Cloud Report, about 31% consider themselves to be intermediate users and about 32% consider themselves as advanced users of cloud.
Using automated tools to not just collect, analyze, and extract insights about your customer, but also to measure the functionality and growth of your company.
Personalized Customer Experience
Collective customer experience has moved out and personalized customer experience has stepped in. Modern customers tend to trust businesses that connects with them in an engaging, and most importantly, in a personal way.
Though there is a burning debate on the ways organizations and companies using people’s personal data, it appears that consumers, especially the millennials, have no qualms about businesses using their historical and purchase data to suggest them with relevant products and services. In fact, their trust factor on businesses grows with this approach.
When businesses address a customer by their name and recommend products and services based on their purchasing and browsing history, see it as a benefit and seem to welcome this approach. According to a recent survey by Accenture, about 75% of customers are likely to buy products from company which uses historical data to offer personalized customer experience.
Stories: How Companies Upped Their Game Through Digital Transformation
Digital transformation is a process that is neither done in a single day nor provide results overnight. It has to be done strategically and is expected to pay off immensely in the long run, probably this explains why startup companies and multinational empires are digitally transforming themselves or already transformed.
Here are the major companies who invested in digital transformation and are already seeing the result.
Target is now one of the world’s leading retail companies. Instead of being just a customary retailer, trying to sell its products, it rose to demands of the modern buyers and decided to digitally transform its organization to provide a “blend of digital, home and store”.
The company’s current digital strategy is to blend retail and mobile to provide new digital experience for their users. It began by remodeling 400 of its stores with mobile technology, AI, Augmented Reality, Analytics solutions and enterprise data to name a few.
The digitally transformed stores follow the D2C (Direct to customer) model by selling its exclusive items at pop-ups from popular brands.
Its new software solutions lets them engage effectively in social media and even allow their customers discover and buy new products directly through social media.
It had created a new supply chain model to eliminate backroom labor and costs. After witnessing an impressive spike in its earnings and witnessing best traffic and sales, it has decided to remodel 600 more stores by 2020.
In the last two years, it is reported that its revenue has increased from $70 billion to $76 billion. The digital transformation looks to be clearly paying off.
From being a regular hardware store, Home Depot realized that its business will get stagnant or even become redundant, if it was not adapting itself to the sweeping digital wave. It did. And that proved to be a wise transition.
First it combined its physical and online experience by setting a solid digital infrastructure, innovative mobile app and user experience strategies to create a seamless experience across the board.
Home Depots Digital transformation today allows it to:
- Track local trends and confirms that right items are in stock, without losing it money of excess inventory.
- Implement voice and visual search into its mobile app to provide its user more options and unique user experience.
- Help customers easily find products and items. With the aid of digital transformation, in a span of 2 years, Home Depot’s revenue rose from $94 billion to $108 billion.
Best Buy one of the few companies that went to the fringes disappearance and bounced back successfully. Today, its successful resurrection can be safely attributed to Digital adoption and transformation. Best Buy started as electronic store, but by the arrival and success of Amazon, its chances of surviving had grew slim.
Thus, it was impelled to make a digital transformation. It began by offering competitive pricing strategy and went to become a digital leader in technology. Instead of just selling products, began to enrich people’s lives with the help of technology.
Today, Best Buy is 90% digital. Backed by powerful mobile solutions and AI the company provides a fast delivery model and offers an immersive customer experience through in-home consultations to train and educate customers in using their devices in the right way.
Mobile app solutions, AI, Analytics they all play a crucial role in the upliftment of Best Buy business ecosystem.
Today, several businesses are still in limbo when it comes to investing in digital transformation. However, the above companies tell us how they have redefined their business through digital transformation. In the wake of constant changes in technology and customer demands, digital transformation stands an important factor in being prepared for the ongoing change, and making your business future-ready.