Companies are spending billions on digital transformation as a mega trend to reimagine their business operations. Although digital business transformation is pervasive, it may be challenging for MNCs and enterprises with thousands of people in different locations.
Though the epidemic has accelerated business transformation initiatives, making the leap is more complicated, even with more funds and resources available. However, when the implementation of digital transformation is reasonable in big enterprises, it gives the desired results.
According to research company IDC, the digital transformation market will reach $6.8 trillion by 2023. In addition, they foresee that 75 percent of businesses will have total digital transformation (DX) implementation roadmaps in place.
Thus, in this blog post, we’ll cover the basics of enterprise digital transformation and provide a pathway for implementing it successfully in your own business.
What is Enterprise Digital Transformation?
By “enterprise digital transformation,” we mean the use of digital tools & technologies and their integration into our operational & business workflows. Aimed to deploy, deliver, maintain, and improve existing business operations and customer experiences while satisfying changing business and market needs.
Customers’ shifting expectations for services force businesses to reevaluate their investments in IT, people, and processes in pursuit of novel business models and revenue opportunities. Traditional product sellers, for instance, need to adopt digital business practices to increase the perceived value they provide to clients.
Enterprise digital transformation strategy calls for cross-departmental collaboration and the melding of business-focused concepts with fast application development methodologies. Any attempt at digital transformation inside an organization should be overseen by the CEO, CIO, and other C-suite leaders.
According to a worldwide study by KPMG in 2020, businesses are spending extensively on technology to deal with pressing concerns like declining revenue and disrupted supply chains. Enterprises are rapidly adjusting to changing customer preferences and preparing for the future by becoming more competitive and resilient.
Technology can help companies adapt swiftly to supply chain disruption, market volatility, and shifting consumer expectations. And it helps businesses keep pace with the rest of the market. There will be a lot of changes in the way enterprises do things in 2022 due to digital developments in technologies like blockchain development, AI/ML, Big data analytics, Cloud computing, Cybersecurity, the Internet of Things, etc.
Benefits of Enterprise Digital Transformation
Some businesses use credible enterprise digital transformation service providers to steer their digitization initiatives. It’s safe to say that hiring digital transformation consulting is the starting point for making a digital strategy that offers multiple benefits, such as:
- Improved efficiency and productivity: Digital tools and processes can automate tasks and streamline workflows, freeing time and resources for more value-added activities.
- Enhanced responsiveness to market shifts and consumer needs is one of the main benefits of digital transformation, which also helps businesses increase their agility and competitiveness.
- Greater data-driven decision-making: By capturing and analyzing large volumes of data, organizations can gain valuable insights that inform business decisions and strategies.
- Improved collaboration and communication: Digital tools can facilitate communication and cooperation between employees, partners, and customers, enabling organizations to work more effectively and efficiently.
- Increased innovation: Digital transformation can foster a culture of innovation, enabling organizations to continuously improve and adapt to changing market conditions.
- Cybersecurity: As the corporate world moves toward an increasingly digital model with multiple entry points, protecting sensitive data and preventing unauthorized access is more important.
- Improved resource management: The integration of siloed software, data sources, and applications via enterprise digital transformation allows more efficient administration of company-wide resources.
- Enhanced customer experience: Digital technologies can enable organizations to better understand and meet the needs and preferences of their customers, leading to improved customer satisfaction and loyalty.
According to Gartner, more than two-thirds of businesses claim that they differentiate themselves mainly by the quality of the customers’ experiences (CX) they provide. The Accenture research further states that CX is the primary factor in achieving long-term success for any enterprise. Thus, growing CX only by 1% adds millions to business revenue every year. This is possible by implementing an enterprise-based digital transformation roadmap in your existing business.
Challenges in Enterprise Digital Transformation
Studies by McKinsey show that 70% of digital transformations fail, and just 30% are successful. So the challenges that hold enterprises back are these –
- Strategies, plans, and funds: Organizations must invest outstandingly in technology, resources, and time to drive digital transformation.
- Resistance to change: Enterprise digital transformation requires a significant shift in how an organization operates, and some employees may resist change. It’s essential to communicate the benefits of the transformation to employees and involve them in the process to help build buy-in and support.
- Limited resources: Implementing new technologies and processes can be resource-intensive, and organizations may face challenges in terms of budget and manpower. To make the most of available resources, smart planning and prioritization are essential.
- Complexity: Enterprise digital transformation often involves integrating multiple technologies and systems, which can be complex and time-consuming. It’s integral to have a clear roadmap and to carefully manage the integration process to avoid delays and setbacks.
- Data privacy and security: As organizations collect and store more data, they must be mindful of privacy and security concerns. Implementing appropriate safeguards to protect sensitive data and ensure compliance with relevant regulations is necessary.
- Skills gap: Organizations must invest in employee training, learning, and development to obtain the necessary skills to use and manage new technologies effectively.
- Managing cultural change: Digital transformation often involves significant changes to an organization’s culture, which can be challenging for employees and leaders. It’s important to address the cultural change process carefully to ensure a smooth transition.
In many cases, digital transformation services benefit the service provider. That leaves little room for bargaining for businesses when it comes to adopting these digital services. But Softobiz Technologies’ digital transformation services are unique.
We prepare businesses for exponential transformation by facing digital transformation challenges and using strategies like the Ice Cream Scoop Strategy, Nuclear Bomb Strategy, Legacy Microservice Strategy, and Migration & Security Strategy. We provide a Digital Transformation Roadmap to help you realize your company’s full digital potential in light of shifting market conditions and emerging prospects.
Steps to A Successful Enterprise Digital Transformation
The scale and significance of the digital transformation simply cannot be exaggerated. Since digitalization is more of a business transformation, cultural transformation, people transformation, and technology transformation, at Softobiz, we follow a nine-step process to ensure a successful digital transformation for enterprises:
- Define your goals: Clearly articulate the business objectives that you hope to achieve through digital transformation. You may use this to evaluate how well your efforts are paying off.
- Conduct a digital readiness assessment: Identify the areas of your organization most ripe for digital transformation and assess your current level of digital readiness.
- Develop a roadmap: Based on your goals and assessment, create a roadmap that outlines the key steps and milestones necessary to achieve your desired level of digital transformation.
- Build a cross-functional team: Assemble a team that represents different functions and levels of the organization, as well as diverse skills and expertise. This team would serve as the engine behind the digital transformation.
- Identify and prioritize technologies: Determine which technologies will be most impactful in helping you achieve your goals and prioritize their implementation.
- Foster a culture of innovation: Encourage continuous learning and experimentation and empower employees to take risks and try new things.
- Communicate and engage with stakeholders: Keep stakeholders informed about the digital transformation effort and involve them in the process to build buy-in and support.
- Monitor and measure progress: Regularly track your progress against your roadmap, and adjust your strategy as needed to stay on track.
- Continuous improvement: Digital transformation is an ongoing process, and it’s important to continuously assess and refine your efforts to ensure that you meet your goals and adapt to changing market conditions.
Several prominent organizations have gone public about their digital transformation initiatives; they include General Electric, Nike, Uber, Walmart, Target, IKEA, John Deere, and many more.
As more and more enterprises speed up their digital initiatives to keep up with changes in customer behavior, it’s more important than ever to adhere to digital transformation. Our enterprise digital transformation services give you the tools you need to track and evaluate your progress, close technical skill gaps, and introduce new technologies to transform your business processes exponentially.
Contact Softobiz now!