Digital Transformation in Business

Digital transformation in business refers to the integration of digital technologies across all areas of a company, fundamentally changing operations, customer interactions, and strategies for growth. A digital transformation is a complete business transformation. It’s crucial to keep this in mind if you’re seriously considering transforming your business. It’s not just about updating IT systems and apps. It’s a cultural shift and a reimagining of all of your company’s processes and ways of doing things. Before we get into how to build a framework for your digital transformation, let’s first go through some of the signs that your business is, in fact, in need of transformation.

Definition of Some Terms

1. Digital Transformation: The process of integrating digital technologies across all aspects of a business to enhance operations, customer engagement, and growth strategies. It involves reimagining business processes, not just updating IT systems.
2. Data Silos: A situation where data is isolated within different departments or systems, making it difficult to share or analyze effectively across the organization.
3. Scalable Platform: A technology solution that can grow with a business, handling increased loads or demands without significant changes.
4. Customer Insights: The understanding of customer behavior, preferences, and needs based on data analysis, which informs decision-making and strategy.

Signs that a Business Needs a Digital Transformation.

 Signs that your business is in need of a digital transformation can appear across different parts of your organization. They may not scream “It’s time to go digital!” or “Why aren’t you on Instagram?” Instead, they could manifest as a diverse set of business problems.

• You’re not getting the referrals that you used to get.

More and more referrals are now shared online, via social media, apps, email, and messaging. If your business doesn’t have a strong, easy-to-share digital presence, you could be missing out on referrals.

• Repeat Business isn’t Repeating Like it used to.

Customers not coming back to do business with you again isn’t necessarily a sign that your products and services aren’t measuring up. Losing repeat business could be due to competitors’ promotions, lack of follow-up communication on your part, or any number of other reasons. A digital transformation of your messaging strategy could shed light on why your repeats have been dwindling.

• Tried-and-true promotions are no longer generating leads.

Why aren’t your killer promotions effective anymore? Are you measuring their impact? It’s hard to pinpoint the impact of print campaigns, and even last year’s best digital strategies may no longer be effective. If your promotions aren’t bringing in leads, it may be time for a new, bottom-up approach to marketing.

• Teams are operating in silos, with limited collaboration and information sharing, leading to increased cross-departmental complaints.

The idea that sales and marketing just don’t get along has gone the way of the dinosaurs. Collaboration is the operative word in today’s progressive business cultures, and getting your data out of silos and in front of whoever needs it is key. At the core of every digital foundation is a plan to make business data accessible and useful across departments.

• Your technology feels outdated as employees want features they enjoy in consumer apps.

 Spreadsheets are great, but you shouldn’t be using them for everything. Modern business apps that serve specific needs, integrate for data sharing, and offer user-friendly experiences across desktop and mobile are where it’s at. If your current technology doesn’t offer employees most, if not all, of the above, maybe it’s time to look at a technology platform that can.

• Understanding root causes often reveals a lack of data visibility essential for informed decision-making.

Many SMBs are built on a patchwork of applications that don’t talk to each other. Fixing your technology infrastructure to facilitate sharing and analyzing data across your business is a key step toward better, more informed decision-making.

Digital Transformation Strategy

 A digital transformation strategy is a business transformation strategy. Remember that just as digital transformations are about business first, and digital second, problems with your business data may be signals to look more closely at how your company is doing business generally. Laurie McCabe, Co-Founder and Partner at SMB Group said it well: “In fact, it’s usually situations like these that make you realize you don’t have great visibility into your own business data or, even worse, have lost touch with what your customers want and need.”

If you’re seeing red flags and realizing that your business data isn’t centralized, accessible, and working for you, what’s next? It’s time to craft a digital transformation strategy.

How small Business Leaders can Think about a Digital Transformation Strategy.

• Start with an internal assessment to identify gaps, problems, and areas where you may experience difficulties.
• What’s your biggest problem?
• What’s the key to your survival?

For very small and very new businesses, the answers may be short and sweet: We need customers and sales. We need a few key processes and systems we can run with. It’s important to involve everyone at your company. All will be part of your digital transformation over time, and you may have more stakeholders than you think.

Even if your company is small and new, and the path to digital transformation seems clear now, remember that you’re building for the future. And in the future, you will be bigger. Whether that means more employees, more revenue, or both, your business will grow. Flexibility and the ability to stay nimble as your business evolves should be built right into your digital transformation strategy. Connecting with a Salesforce MVP online or in person can be a great — and free — resource as you start thinking about your small business digital transformation strategy.

• Consider Outside Help in Mapping a Digital Transformation Strategy.

Working with consultants, partners, and tech vendors can be great for SMBs because they have the depth of experience and knowledge to help you figure out the best paths to success. Experienced partners have likely helped other companies in similar situations, and so can help you find the most direct paths to meaningful transformation. We also have great consulting partners in the Naijadirectory and its team you can connect with.

Many small business leaders hear the word “consultant” and instinctively flinch while reaching a hand to guard their wallets. Don’t assume that getting help is always too expensive — that’s simply not true. Many large companies offer free advice or training for SMBs, like Salesforce Trailhead. Beyond free offerings, there are all sorts of ways to get advice without spending a lot.

• You Don’t have to Create your Digital Transformation Roadmap Alone.

Remember that the point of hiring or partnering with an external group to craft your digital transformation strategy is to draw upon their expertise. They bring something to the table that you don’t have — experience and industry expertise across many different clients — and can provide value and best practices. Your short-term investment in their time is designed to help your business reap bigger benefits over the long haul.

Tapping the right partner to consult on your transformation strategy lets you come up with a better plan than you could on your own, while also letting you stay focused on your core business. It will also help you avoid some of the rookie mistakes that inevitably happen when you go it alone.

• Collaborate on Technology Decisions and Investments when Leading a Digital Transformation in Your Organization.

If you’re leading a digital transformation in your organization, keep this rule of thumb in mind as you consider decisions and investments: Be collaborative. If you have 10 employees, all 10 will be affected by the change, so you need to get them on board.

Don’t make decisions in a vacuum. The changes brought by digital transformation will impact everyone’s daily workflow and are meant to empower employees. Get everyone involved early and solicit ideas. Not only will you get better buy-in, you’ll get a better outcome, too.

• Avoid Common Mistakes in your Digital Transformation Framework.

 Technology integration is key. It’s perhaps the number one area SMBs should be investing in.

One of the biggest, easiest-to-make mistakes that businesses make is investing in a bunch of different technologies that don’t integrate. Unfortunately, it’s hard to unwind the resultant snarl of information when your platforms and apps don’t work together.

SMBs need to stay focused on getting the capabilities they need now in a way that will scale as their businesses grow. Today’s business ecosystems and platforms make it easy for vendors and developers to build apps tailored to help SMBs grow. Adopting a scalable platform will help ensure that the processes and information in your company can flow as easily as possible. That’s the foundation upon which everything else can be built.

• Build Bridges to Connect Your Data, Employees, and Customers.

You don’t need to scrap everything and start over when beginning a digital transformation, even if you’re transitioning from a snarl of apps that don’t talk to each other. In fact, the most effective solution is to bridge data silos and pull all information into a central space — rather than completely starting over.

The second part of the process is to unify your data, with the aim of creating a single, unified view of the customer. Once you’ve built bridges between fragmented information, you’ll be able to surface useful insights into customer behavior and maximize the potential of new technologies like AI. Looking at your business anew with the benefit of new insights and tools is what digital transformations are all about.

FAQ Section

Q1: What is digital transformation?

A1: Digital transformation involves adopting new technologies across business functions to improve efficiency, customer service, and growth. It’s more than upgrading IT; it’s a cultural shift.

Q2: How do I know if my business needs digital transformation?

A2: Signs include outdated technology, reduced repeat business, ineffective promotions, and siloed teams. If you’re not leveraging data or struggling with customer engagement, it’s time to reconsider your digital approach.

Q3: What is the importance of integrating data?

A3: Integrating data from all departments provides a unified view of customers and operations, leading to better decision-making and enhanced customer experiences.

Q4: How can small businesses begin their digital transformation?

A4: Start by assessing current problems, collaborating with employees, and considering external advice or consultants to build a strategy. Focus on scalable technology and data integration for long-term growth.

Q5: What is a scalable platform?

A5: A scalable platform grows with your business. It can handle more transactions, users, or data without requiring a major overhaul, making it ideal for expanding businesses.

Conclusion

Digital transformation is complex, involving a holistic approach to adopting new technologies while reshaping the company culture. Businesses that successfully navigate this change can build a more resilient, efficient, and customer-centered future. For a deeper dive into the topic, Salesforce, McKinsey, and Deloitte provide extensive insights into the latest trends and strategies in digital transformation.

Written By: Florence