Digital transformation: What is it and why should you consider it? - Emptor

Regardless of the size of your company or the sector in which it operates, if you are not undergoing digital transformation, you risk falling behind. Digital transformation is an absolutely essential process for any organization that wants to remain competitive in today’s global economy.

In this article, we tell you everything you need to know about digital transformation: what it is, why you should consider it, and what benefits you can obtain.

As we have mentioned, digital transformation is the application of digital capabilities to processes, products, and assets to improve efficiency, enhance customer value, manage risk, and uncover new revenue-generating opportunities.

In other words, it is about changing the way your company operates by using digital technologies to improve efficiency and performance.

Reasons to Consider Digital Transformation

There are a number of reasons why you should consider digital transformation in your company:

1. Improved Efficiency: It allows you to improve the efficiency of your internal processes and reduce costs.
2. Product and Service Quality: It helps improve the quality of your products and services, as well as the experience you offer your customers.
3. Adaptability: It allows you to be better prepared to face market and competitive changes, as well as to adapt to the new demands of your customers.

In the book The Digital Transformation Playbook by Dr. David L. Rogers, several points are reviewed that we will discuss to understand a little more about digital transformation.

The Five Domains of Digital Transformation

1. Customers

   • More than ever, your customers are dynamically connected. With platforms and social networks, they are more active than ever, sharing experiences, commenting, and suggesting. Learn to practice social listening to understand how your customers talk about your brand: positive, negative, or neutral.
   • They discover, evaluate, recommend, buy, and use products. Make sure to give each of your users the best experience.
   • Share, interact, and stay connected with other brands. Strategic alliances can lead to collaborations that bring a lot of value.

   The task of your company is to define the customer buyer’s journey and the purchase funnels. Search engines, mobile devices, social networks, and walk-in visits define how users reach your digital and physical properties. Achieving the right balance between online and offline will define how your business will grow with loyal customers.

   Take the opportunity to provide relevant follow-up with customer service, call centers, live chats, and bots that learn from the interaction with your users; data is the most valuable asset.

   Better than focus groups, social networks are an infinite source of real-time feedback. With active listening, a lot of value can be obtained from social listening.

   Your current customers with the Net Promoter Score show you how likely they are to recommend your product or service.

2. Competition

   • Observe how companies compete and cooperate by forming strategic alliances.
   • Asymmetric competitors may emerge from companies outside our industry.
   • Innovation is key: companies develop, test, and bring new ideas to market. Today we are learning at an accelerated pace, and testing ideas is faster than ever. Lean MVPs (Minimum Viable Products) help adapt and improve a product or service.

3. Data

   • How companies produce, manage, and use information is vital. The gold is in the data; a company that processes its data can generate predictable revenue that allows it to grow.
   • It is crucial to process information and generate data science to predict the future.
   • Operations, sales, marketing, and customer success are departments that generate data and must be in constant communication for making the right decisions, based on data and not assumptions.

   Leveraging Big Data and AI (Artificial Intelligence) to make predictions and anticipate changes in markets is essential.

4. Value

   • Deliver commercial value by exchanging information.
   • Develop updated and optimized marketing campaigns using predictive algorithms.
   • Create platforms, not just products, where there are users with recurring revenue through the exchange of value.

   Convert data into quantifiable assets; what can be measured can be improved. Innovate through rapid experimentation, allowing learning from failures: “Fail fast, fail often while disposing waste”.

   Adapt your value proposition and renew your product or service as you get feedback from your consumers.

5. Innovation

   • Companies develop, test, and bring new ideas to market through innovative products that allow validating the idea. We must adapt to an accelerated pace with technology.

   According to The Digital Transformation Playbook, there are 9 tools for digital transformation:

   • Customer network generator
   • Platform business model map
   • Competitive value train
   • Data value generator
   • Convergent experimental method
   • Divergent experimental method
   • Value proposition roadmap
   • Disruptive business model map
   • Disruptive response planner

Conclusion

In summary, digital transformation is an absolute necessity in today’s world. If you want to remain competitive, you must invest in digital transformation. The benefits are clear: it improves efficiency, reduces costs, improves the quality and experience of your customers, and helps you be better prepared for market changes.

What are you waiting for to transform your company?

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