Digital Transformation: Transitioning into a New World

For the past few months, we have been reimagining, rethinking, and reconstructing a new world. It is no secret that companies, individuals, and societies in general are seeking ways and designing new strategies that are shaping the new reality we are embracing.

Even though we have been physically paused, our connections remain strong. The digital world is thriving and growing, serving as one of the few means that allow us to move forward. Creating innovative approaches to meet shifting market demands is crucial for companies’ evolution and business growth in this new economy.

Remaining relevant and leveraging digital tools has become the new standard. But how should a company embrace this transformation? Let’s start from the beginning.

What is digital transformation?
According to Salesforce, digital transformation aims to leverage new technologies to adapt and reinvent current business processes, practices, and customer experiences, thereby increasing the added value delivered to each stakeholder. Digital transformation is a process that responds to shifting customer needs and trends, adapting business actions in a VUCA (Volatile, Uncertain, Complex, and Ambiguous) world. We are currently facing a reality that demands swift solutions and customer-centric strategies.

Why pursue digital transformation?
Jobs, roles, and lifestyles are being reimagined and are shifting to digital models that allow for flexibility, on-demand services, and quick responsiveness. Building business models and companies solely based on physical processes is no longer reliable. Leaders should strive to understand which processes and actions will enable them to expand and scale their organizations in the future.

How can companies implement digital transformation?
According to Andrew Annacone, Managing Partner at TechNexus, there are four ways in which digital transformation can be implemented. Each organization should analyze and decide based on their capabilities, knowledge, and available resources. Engaging in the digital world is a process that requires collaboration from all business units to result in successful implementation.

Transforming Processes
This involves a complete overhaul of processes, from operations to customer experience, to create smoother, automated, and enhanced performance through the use of digital tools. Each organization should evaluate which area will create the most value and allow the company to achieve its goals once digital tools are implemented. Examples include creating an entirely new customer experience and sales process that strengthens existing relationships and forges new ones, as well as enhancing back-office operations through automation for greater efficiency.

Transforming Business Models
Creating a new business model by harnessing digital tools requires great creativity and innovation, as the way value is delivered to customers is being completely redesigned. Netflix, for example, has reshaped the way video content is consumed today. In this manner, leaders should be informed about the available technologies and how they can be repurposed to create innovative solutions. These solutions often require a deep understanding of consumer needs and trends. By altering societal fundamentals, such projects hold significant growth potential.

Opening up to New Markets
Every business possesses specialized knowledge, and technology can assist in transforming this knowledge into new product and service lines, enabling entry into new markets. Companies can combine existing knowledge with new technologies to develop products that cater to new market segments. Often, it’s not necessary to develop these capabilities internally; there are various opportunities to outsource them to trusted providers who will develop this new digital business model alongside you.

Transforming Culture and Organizations
As companies drive their digital transformation, they should drive a corresponding shift in their employees’ mindsets. While this is a long-term endeavor, for innovative digital models to be sustainable, a shift in culture is essential. All company stakeholders should align with the vision and be educated to adopt the skills and behaviors that these technologies require. Based on Annacone’s experience, building a digital-friendly culture begins by implementing and executing these initiatives.

How Should You Begin?
Start with the core – with the fundamentals that have driven your organization’s success and allowed it to thrive. What is the purpose or need your company aims to fulfill? How can you reconstruct it into an innovative solution that continues to fulfill that need? Have the needs and desires of your clients evolved?

The key lies in fully understanding your clients’ needs and desires, and how your organization will provide value to them. In a changing world, the ways in which value is delivered are also changing. How will your model deliver present-day value?