The Necessary Path Towards Digital Transformation in Times of Crisis

The global public health crisis resulting from the COVID-19 outbreak has led nearly every country on earth to experience an unprecedented situation not seen for decades. Domestic and global economic productivity has come to a near standstill with uncertainty as to the predominant sentiment. Organizations that had already embarked on Digital Transformation initiatives are showing a higher capacity of adapting at this current juncture. Those who have not already done so will see the Digital Transformation impacting their future trajectory.

What is the importance of Digital Transformation in today’s enterprises?

As Charles Darwin said in 1809, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” In today’s rapidly-changing world, we see this theory gain footing once again. Those organizations that embarked on a path towards digital business transformation through implementing e-commerce, integrating Big Data, acquiring new potential customers, interacting with users on social media, and more, are adapting better to the current dynamic to continue operations.

This situation has highlighted the need and importance of opting for the Digital Transformation. Those who have not already done so should start believing in technology’s potential once we come out of the crisis. The digital business process transformation will use a 360° strategy to help create a hybrid of their current business model and the required digitization efforts. If they fail to do so, they’ll run the risk of having to defy Darwin’s theory of evolution.

The Digital Transformation is no longer optional for corporations. Instead, it’s a critical factor for growth and positioning in the economy both during the crisis and after. In Spain, those corporations that have made more progress in the Digital Transformation have known how to adapt during the hard times. According to a 2018 study from Dell EMC and Intel, those entities that have carried out the Digital Transformation can have up to 22 more times a higher level of competitiveness and adaptation.

The Digital Transformation process for corporations

Key considerations before digital business transformation

Before setting out any objectives for carrying out a Digital Transformation process in your business, you should carry out an internal analysis. You need to identify the areas for improvement and then look at the how, when, and why of how you communicate with your customers. Then you must confirm the role the new technology you’re integrating into your processes will play in every department. Since customers have changed their behavior and their habits, you have to follow suit and adapt if you want to stay relevant.

The transformation to digital business is a fundamental change that requires involvement from all stakeholders for it to prove successful across the firm: the CEO, HR, the department in charge of digital marketing consulting and execution, sales, and more. Business Intelligence gains importance when determining the relationship between optimizing resources and boosting earnings; however, it doesn’t make sense without balancing them out. This new corporate philosophy must put their prospects and users at the center of their strategies. To ensure the involvement of all stakeholders, you need to carry out the following steps:

• Develop the roadmap that will make your company a problem-solver and not just a product or service provider.
• Create value-added models to attract potential customers.
• Craft strategies to help boost your company’s positioning, where every department plays a specific role.
• Turn employees into the top experts in their area through training.
• Adapt work systems to the new model.

Strategy drives the digital business process transformation

A study from the MIT Sloan Management Review and Deloitte found that strategy should be the star of this process rather than technology since the definition of a clear roadmap will help meet the goal of the initiative. A lack of a plan will lead to an incomplete outcome that does not render the desired effect. The study also offers insights that will mark change:

• The defined strategy is synonymous with a digitally-mature company.
• The strategy establishes a reach and global outcomes to end up with a comprehensive Digital Transformation, not just applying technology in certain parts of the organization.
• The strategy helps manage talent more efficiently to make their adaptation more successful.
• The strategy driving towards digital maturity makes it more comfortable in facing risks, just like the COVID-19 pandemic.

Corporate digital transformation processes must take on an overall challenge based on a previously-defined strategy. This approach, in line with a study from Setesca, 86% of corporations Digital Transformation practices in 2019 by placing bets on different technological solutions most appropriate for their planning.

The role of customers in the transformation to digital business

Consumers are aware of the power they earned through gaining access to networks, just like organizations. As a result, they:

• Want to manage and use the tools they have in their grasp to control.
• Seek to have positive experiences and let them be known on social media. If they have a negative experience, they’ll display their frustration, and your enterprise could suffer the consequences.
• Look for transparency and clarity in the processes where they’re involved.
• Seek an intuitive, straightforward value proposition.
• Want you to listen to them, and as a result, are on the lookout for active listening.

Critical factors for successful Digital Transformation

A 2015 PwC study offered a list of ten critical indicators for success in a Digital Transformation process. These still-valid metrics sum up the factors to consider when tackling digitization inside your organization.

• Leadership from the Chief Executive Officer (CEO).
• Involvement of the Chief Marketing Officer (CMO).
• Commitment from the rest of the team.
• Everyone in the firm is aware of the digital strategy.
• External or internal analysis as a source of inspiration.
• Digitization as a competitive advantage.
• Fair use of information.
• Proactiveness on matters of privacy and safety.
• A single digital roadmap
• Periodic measurement and evaluation.

To wrap up and ensure the smashing success of your Digital Transformation strategy after a crisis, you’ll also need digital marketing and inbound marketing to bring you closer towards meeting your goals. This transformation will most certainly help you improve your ability to adapt to critical situations and circumstances.