Digital transformation isn’t an overnight success – before they take the plunge, businesses need to be aware of the multiple steps to digital transformation.
The global digital transformation market is predicted to have a compound annual growth rate (CAGR) of 19.1% by 2025. These numbers emphasize the growing number of companies that are invested in becoming digital enterprises in the near future.
As digital transformation increasingly becomes the driving force behind a business’ success, it has become even more critical for businesses to follow a comprehensive strategy to fully embrace the organizational shift.
At Askara Technology, we provide the digital framework businesses need to reach the next level. We help our clients in not only understanding the digital transformation, but also how it can be applied to their business.
In this article, we will explore the 5 crucial steps to digital transformation businesses need to follow in order to successfully undergo the shift.
After reading this article, businesses will have a deeper understanding of the process they will need to go through to be digitally transformed.
Step 1: Assess The Current Business
The first and foremost step in any digital transformation journey is to assess your organization’s current state.
This initial step is not just about acknowledging how technology operates within your business; it’s about understanding the relationship between your current processes, the technologies in play, and the overall digital fluency of your organization.
In order to start the process, it is useful to first ask yourself several critical questions about your business:
- What technologies are currently in use, and how effectively are they supporting our business objectives?
- What areas of the business are most in need of improvement or modernization?
- How digitally literate is our workforce, and what training might be required?
This first assessment serves as the foundation for crafting a tailored digital transformation strategy.
Understanding where your business stands in terms of digital readiness is essential for making informed decisions about the direction and scope of your transformation efforts.
Step 2: Define Objectives and Key Performance Indicators (KPIs)
Once you have a clear understanding of your current state, the next step is to define your digital transformation objectives.
In this step to digital transformation, businesses need to decide on the specific goals they are aiming to achieve.
Whether it’s improving operational efficiency, enhancing customer experience, or staying ahead of industry trends, articulating clear objectives is crucial. It goes without saying that businesses need to ensure their objectives are SMART (Specific, Measurable, Achievable, Realistic, and Time-bound).
Alongside these objectives, businesses also need to decide on the proper Key Performance Indicators (KPIs). These metrics will serve as benchmarks for measuring the success of your digital transformation initiatives.
Several common KPI examples include:
- Increased website traffic
- Higher conversion rates
- Improved employee productivity
- Enhanced customer satisfaction
Setting SMART objectives and KPIs will provide a roadmap for your digital transformation journey and be critical in tracking progress along the way.
Step 3: Invest in the Right Technologies
The third step to digital transformation is ensuring that you choose the most suitable technologies for your business.
In fact, the success of a business’ digital transformation journey is almost solely based on the technology they chose to invest in.
While technology is rapidly evolving every day, not every technology is compatible with every business. Businesses should not only factor the most trending technology, but rather the most compatible one with their business goals and landscape.
Several examples of the technologies businesses can choose from are:
- Cloud computing
- Data analytics tools
- Artificial intelligence (AI)
- Enterprise resource planning (ERP) systems
Choosing the right mix of technologies requires a strategic vision that goes beyond immediate needs.
This step will contribute to future-proofing your digital infrastructure, ensuring that the technologies your business invests in can not only meet today’s demands but also scale with the evolving needs of tomorrow.
Businesses also often consider external consultants and support during this step of the digital transformation process.
Step 4: Foster a Digital Culture
The fourth step to digital transformation involves training the people within your business.
Remember, digital transformation is not just about improving services for customers, but also improving business operations for internal employees.
Thus, embracing this innovation requires more than just introducing technology to the people; it often necessitates several changes in your organization’s culture.
Creating a digital culture can be implemented in various methods, including through:
- Employee Training: Providing ongoing training to ensure that employees are equipped with the necessary digital skills.
- Open Communication: Encouraging open communication channels where employees feel comfortable sharing digital ideas and innovations.
- Innovation Mindset: Fostering a culture of innovation where employees are encouraged to think creatively and contribute to the digital evolution of the business.
This step in the digital transformation process is a genuine investment in the growth and well-being of your workforce.
A resilient digital culture will not only fortify your business’ current initiatives but also position your organization as an agile player in the industry that is prepared to embrace future technological advancements.
Step 5: Execute The Plan
The last of these steps to digital transformation is executing your plan into reality.
This is one of the most crucial stages from the process, where hard-formed plans slowly evolve into action and strategies materialize into tangible results.
Businesses need to implement several important factors in this step, such as:
- Agile Implementation – The execution phase demands a flexible approach that adapts to unforeseen challenges and capitalizes on emerging opportunities.
- Collaborative Cross-Functional Teams – Foster a culture of open communication and shared responsibility, creating a cohesive unit that is empowered to bring the digital vision to life.
- Measurement and Improvement – Regularly assess the impact of implemented changes and be prepared to iterate based on data-driven insights.
Remember, digital transformation is not a one-size-fits-all endeavor.
Each business is unique, and the approach to digital transformation depends on the specific needs and goals of the organization.
By staying proactive, adaptive, and committed to the journey, business leaders can lead their businesses into a future where digital excellence is the norm, not the exception.
Improve your business with Askara Technology!
Embracing digital transformation may be a long and continuous process, but the benefits businesses receive in the long run can be worth the effort.
By following these five key steps, business leaders can handle the challenges of digital transformation with confidence.
While it is possible to conduct this process purely from your internal team, you can also consult with external IT experts to further improve the process.
If you require more guidance and technological expertise, you can contact our team of experts at Askara Technology. We will help outline your business needs and provide the digital solutions you require.