Want to learn more about the digital transformation framework?
Did you know that 56% of US executives said that bad data contributed to lost sales? Those interviewed said it also contributed to wasted time and diminished customer relationships. Worse yet, it affected the company culture.
What if we told you bad data could be a thing of the past? In fact, today’s technology can bolster every aspect of your business, regardless of what you do. That’s what this article is all about.
When you’re ready to transform your business and reap the rewards of the digital world, read on.
What Is a Digital Transformation Framework?
Let’s begin with the term “digital transformation.” What we’re talking about here is the movement toward technology. Every business needs to embrace technology to remain competitive.
Unfortunately, the definition is vague. You may be wondering what steps you need to take to digitally transform your business. The answer may not be as straightforward as you’d like.
It’s not a simple matter of moving all your business operations to the cloud. Or installing new customer relationship management (CRM) software. The answer focuses more on the broad strokes and less on the minutiae.
There are two reasons for this.
First, the sheer volume of options available. As well as the exponential growth of these technological innovations. Staying current means trying new technology.
Doing it so often that it becomes part of your business practice, like payroll or taxes.
Second, the enormous difference between businesses. What works for a ramen food truck owner probably wouldn’t work for Amazon’s Jeff Bezos. Their needs are vastly different.
In the sections below, we’ll attempt to define the broad strokes for a framework of sorts. It can be used by any business to achieve a digital transformation.
Transformation needs to begin from the ground up. Its branches must reach each area of your business for full integration. Before you begin, run a diagnostic of your business.
Look at your inventory, personnel, market, and finances. Especially your finances. Portfolio applications can give you a much better sense of how your business is running and where it needs help.
When you find the holes, you’ll know the spots where technology can help you most.
Digital automation allows employees to focus their efforts on less mundane tasks. Think strategy. A manufacturer, for instance, can centralize HR functions.
It frees up HR employees. They can instead focus on developing and using their managerial skills.
Huge swaths of R&D can be automated. It’ll give people in those departments time to focus on skills that software can’t accomplish. They can use their creativity to drive innovation.
With digitization, you can separate work and location. In other words, when your contacts, files, and software are stored in the cloud, you can work from any location. No longer are you bound to a specific desk or office.
With this informal arrangement, employees may work from anywhere. Yes, that includes home. But think about how this may affect the interoffice dynamics.
Employees needn’t be separated by walls. They can jump from seat to seat as easily as a high school freshman in a classroom. It can break up clicks and bolster an agile work economy.
This layout brings people together. It helps them create bonds and share knowledge regardless of station.
It’s staggering how often startups and small business rely on assumptions. And historically, most small businesses had no other options. It was guesswork or nothing.
But things have changed.
With the advent of modern-day technology, businesses can rely on research and data to make informed decisions.
Don’t know whether you’re landing page is doing the job? Then install analytics and a heatmap to get real-time feedback on how many visitors land on your page. Then see where they spent their time on your page and when they left.
Want to know if the drivers for your delivery service are on task? Install an app on their business smartphones or in the company vehicle, so you can track them.
Your Business Model
A digital transformation will affect the interactions of branches of your business. Understanding how these branches interact can everything from business investments to customer satisfaction. The better they mesh, the more your business makes.
If you’re business still relies on old-school methods, should you throw them out the window? Definitely not.
First, determine why you were using those methods. Were they reliable? If so, then keep them. Use technology to augment those methods, not replace them.
True digital transformation means integration of the old and the new. Not replacing one with the other.
For instance, if you’ve relied on the use of postcards to interact with old customers. Perhaps using postcards AND email will improve your connection with old clients.
Digital Products and Services
Like in the digital transformation examples above, consider introducing digital products. For instance, if you sell sporting goods, include digital devices. They can track and report your customer’s workouts.
You could even offer digital classes. They could help customers leverage the workout information. That way, they can achieve their goals faster.
No longer are you confined to your brick and mortar store. Think bigger than your town or city. Bigger even than your state.
You can now take your business nation or even multinational. When you combine digital technology with integration information, you can expand.
If you’re a startup, you can outsource jobs. You can hire experts when you need them without the worry of insurance or other overhead. It’ll allow you to perform quick onboarding when you’re in a growth period.
If you deal in physical inventory, use Amazon services. They’ll not only deliver, but also store your products. Geographical lines matter less than they ever in today’s digital revolution.
The last area of our framework focuses on the customer. After all, without customers, you have no business.
Understanding Your Customer
Segmentation is a big component in any business strategy. You’ve got to understand who your customers are in order to give them what they need.
It’s easier to do this now than it ever was before. You can online polls or surveys. You can read the social media platforms they frequent to hear what they’re really saying.
Then you can take your voice of customer data and use it. Meet your customers exactly where they’re at in a voice they’ll understand and respond to.
When you understand your customers, you can improve their sales experience. Businesses that integrate customer purchasing data can personalize customer service and sales.
For instance, a restaurant can now send personalized coupons to a customer’s smartphone as the customer nears the restaurant. Or better yet, as the customer nears a competitor’s location.
Businesses with multiple customer channels can provide an integrated experience. Multichannel services mean implementing change. Throughout both the customer experience process and internal operational process.
Now retailers can offer home shoppers the option of picking up their merchandise in the store or having it delivered. All the customer online orders can be available to clerks in the store. There need no longer be a gap.
Now that you’ve learned why your business needs a digital transformation framework, what should you do? Find the holes in your present business model. Once you find them, look for technology that will bolster your current practices.
Don’t forget to do your research. New technology arrives every day. There’s no way to know what’s available unless you consistently stay on top of it.
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