7 Tactics to Quicken Digital Transformation
By highlighting the pressing need to integrate new-age technologies to enhance the agility, stability, and resilience of the business, organizations can considerably speed up their journeys of Digital Transformation.
Digital transformations have steeply risen the popularity ladder since the outbreak of the Covid-19 pandemic. Organisations cutting across business sectors have considerably enhanced their investments in digital initiatives and as a result, all mission-critical services of businesses are going through a comprehensive digital revamp. From software to e-commerce and automobile to FMCG, organizations leading their own respective categories are embracing the digital culture and the trend is trickling down to followers and other stakeholders of the business ecosystem.
Benefits of Digital Transformation
The majority of organisations in the businesses of product categories and service domains operate at three different levels: corporate level, business level, and functional level. Digital transformation has the ability to offer discrete benefits to all these three levels, a competence that makes it unique and holistic in nature.
At the corporate level, which is the highest and most important level in terms of its strategic relevance, digital technology brings comprehensive improvements in planning, forecasting, and resource allocation functions. The business level, on the other hand, can utilize the digital approach to effectively segment the market, target the relevant customers, and uniquely position their offerings in the minds of buyers.
At the lowest level where the accomplishment of functional procedures and operational mechanisms take place, the digital transformation empowers both the effectiveness and efficiency aspects of implementation. In sum, digital solutions have the potential to benefit all levels of the organization and bring enormous improvements in both strategic initiatives and tactical measures adopted by firms in accordance with their vision and mission.
Tactics to Accelerate Digital Transformation
1. Favour Digital Solutions: Rising competitive pressures and changing customers’ interests are setting the tone for prioritising digital solutions over other techniques in organizations. The pressures from within the internal environment are also catalyzing the need for integrating new-age technologies into the work culture of companies. All these cumulative changes arising from both internal and external components of the business environment are pushing leaders to go for a complete revamp of companies’ existing infrastructure, network capabilities, and legacy systems, thereby enabling and accelerating the digital transformation of organizations across the board.
2.Enable Business Transformation: Compared to the old and inefficient legacy systems, digital solutions have the capability to deliver comprehensively better performance and that too by using fewer resources. With the help of digital technologies, leaders can also enable both Brownfield and Greenfield transformations in the business field and can guarantee that both the growth requirements and sustainability needs of businesses can be met effectively.
3.Digital-First Strategy: Top management should strive to focus on enhancing the scope of digitalisation of their products and services. To that effect, they should identify the key areas where going virtual can help in delivering superior customer experiences and bring improved performance and efficiency to the table. Digitization will also allow companies to use their manpower more effectively and employ them in areas which are core to their business and offer crucial strategic implications to firms.
4.Cloud capabilities: Contrary to the popular perception of outsourcing, the cloud should be seen from the perspective of a digital scalable platform that allows organisations to increase the level of automation and standardisation across functional departments. The top management should encourage the use of cloud computing and allied services to enhance the overall agility of the business. The cloud also offers the convenience of scalable modular architecture which means new modules can be added to the existing structure of the platform without causing any significant disruption to ongoing processes and procedures.
5.Expand Automation: Automation has the capability to enhance both the effectiveness and efficiency of business solutions significantly. No wonder, the overwhelming majority of the top echelons today favour the adoption of automation in their businesses. Further, an encouraging trend that can fuel the next wave of growth in automation is the enhanced use of artificial intelligence (AI) and machine learning (ML). The use of these inventions can boost both predictive, analytical, and prescriptive modelling capabilities of automation and help businesses make better decisions in light of ever-changing circumstances.
6.Fast Innovation: Digital solutions can significantly assist companies in their innovation efforts by offering critical inputs throughout the process of new product development (NPD). Cloud computing, for example, can become instrumental in ideating new products while modelling tools powered by AI and ML can help in fast and cost-effective prototyping. Further predictive modelling, data analytics, and software-agnostic capabilities can also contribute to fast, reliable, and relevant innovation for companies.
7.Accelerating Ecosystem: By becoming a front-runner in integrating digital solutions, companies can also encourage their suppliers, partners, and other important stakeholders in the ecosystem to embrace the digital culture wholeheartedly. This, in turn, will make the entire industry verticals agile, responsive, and customer-oriented for garnering success in achieving desired growth rate and customer acquisitions among others.
Digital transformations have the capability to bring a host of benefits to the table and by creating a mutually beneficial relationship for all stakeholders in the business ecosystem, these new-age digital solutions can contribute to building a better future for our upcoming generations.