How to Digitally Transform Your Business

There has been a lot of noise around SMEs in India adopting digital technologies and their impact on the business itself, but what are the key success factors to get right? In this article, we identify the five key success factors that will make your journey easier and help you make the most of your digital transformation. Let’s have a look at them one by one.

What Is Digital Transformation?

In its simplest form, digital transformation is the process of using technology to create new – or improve existing – business processes, products, and services. By automating manual tasks, digitising paper-based processes, and making better use of data, businesses can improve performance in support functions and across the operational value chain. In addition, they can drive innovation and growth in the core and beyond. Finally, improving customer experience is often a major goal of digital transformation initiatives. Customers expect consistency from purchase to purchase. They want transparency with regard to pricing and availability. They want efficiency when it comes to completing their transactions. Customers are more likely to come back for future purchases and spend more money over time than if they were unhappy with the buying process at any point along the way. Furthermore, as markets become increasingly globalised, companies need to cater to the diverse needs of various cultures and age groups. From responsive design features that ensure easy readability for smaller screens, like mobile phones and tablets, to localisation features that translate content into other languages seamlessly; one must be ready for whatever the future holds. 

Why an organisation must go for digital transformation

In a rapidly digitising world, every company must undergo digital transformation in order to keep up with the competition. By definition, digital transformation is the process of using technology to create new or improved business processes, products, or services. In order to be successful, there are five key success factors that must be taken into account: performance improvement in support functions, improving performance in the operational value chain, innovation and growth in the core and beyond, and improving customer experience go-to-market. The keys to achieving digital transformation are improving performance in the operational value chain, innovating and growing in the core and beyond, and improving customer experience go-to-market. To achieve these goals, organisations should focus on their performance in what is referred to as support functions. Support functions include activities such as human resources management, accounting and finance, marketing and communications, and more. A strong performance from these support functions creates a solid foundation for companies seeking to make the shift to becoming digital businesses. Strong performance in support functions also creates an organisation's competitive advantage. For example, if an organisation has well-managed talent acquisition, they will have access to top talent and will have people who will help them innovate and grow digitally.

The Six Factors of a Successful Digital Transformation

1. A focus on performance improvement in support functions: Businesses should start by looking at how they can improve performance in their support functions, such as accounting, human resources, and customer relationship management. These areas of a business are often overlooked, but when successful transformations have taken place in these departments, there has been significant improvement across all other departments. 

2. A change-ready culture The best way to prepare for the changes is through cultural readiness training. When employees are aware of what's coming up, they're more likely to embrace it and adapt accordingly. 

3. Motivated employees: Employees who are motivated will find new ways to make the most out of any changes that take place, which will lead them not only to be more productive in their current roles but also open up opportunities for new ones that may not have existed before. 

4. Staying relevant with technology Digitalisation creates an opportunity for innovation and performance enhancement within businesses, but it also means staying abreast of industry trends or risks getting left behind. New technology offers greater efficiency, cost savings, higher productivity rates, better customer experience outcomes, and much more. Staying informed about where your company stands in terms of adopting this technology is essential to maximising its potential benefits. 

5. Building the skills needed for tomorrow's workplace: People skills aren't everything when you're dealing with a digital transformation. Data science, artificial intelligence, machine learning, computer programming, and data analytics are quickly becoming integral parts of our future workforce; those who lack these skills will soon be left in the dust if they don't catch up. 

6. Becoming a leader in an era of disruption: With technological advances come dramatic disruptions to industries and markets, and companies need leaders who know how to handle uncertainty without fear because no one knows what tomorrow will bring.

Organizations that want to do well in this environment need leaders who understand the power of agility, and agility requires radical shifts in thinking. Traditional approaches cannot work today or even tomorrow, but agile organisations must accept the inevitability of disruptive forces instead of finding ways to harness them. Performance improvements in support functions have huge implications for the entire organisation. In addition, performance improvements in support functions ensure that the entire organisation operates efficiently and productively.

An Approach to Digital Transformation

1. There is no one-size-fits-all approach to digital transformation. 

2. Depending on the company, different strategies will be more or less effective. 

3. That said, there are some general best practices that all businesses should keep in mind. 

4. First and foremost, it’s important to have a clear understanding of what digital transformation entails. 

5. In addition, remember that transforming a business means changing how you work internally as well as externally, so make sure your people are on board before moving forward with any new initiatives. 

Finally, it’s vital to understand the needs of your customers, whether you're trying to reach them online or through traditional channels. Without this knowledge, you risk creating something for yourself instead of for them, which could lead to major mistakes down the line.

How your organisation can address DT effectively.

A) Map Your Current State

You can't improve what you don't measure. In order to digitally transform your SME, you first need to take stock of where you are today. This will help you identify areas of opportunity for performance improvement in support functions. Second, Prioritise: The next step is to prioritise opportunities and develop a roadmap with milestones and resources needed to achieve them. Third, Focus: Decide which initiatives should be prioritised and set measurable goals against each one. Finally, Build Capacity: Develop a plan for how your company can build capacity as it begins its digital transformation journey.

2) Assess Your Organisational Readiness

Every company is different, and therefore, each company’s readiness for digital transformation will be unique. To get started, performance improvement in support functions should be a priority. If you’re not sure where to start, consider conducting an assessment of your organisation’s readiness for change. This will help you identify gaps and areas for improvement. Once you have a better understanding of where your company stands, you can begin developing a plan for change. Some of the most important considerations include: 

1) How do we want our customers to interact with us? 

2) What are our goals? 

3) What are our priorities? 

4) What capabilities do we need to implement this change successfully? 

5) How much time and money do we have available?

6) Who needs to be involved in making these changes happen?

7) Who else needs to know about these changes? 

Once you have a good idea of how much effort it will take, what resources you need, and who needs to know about the changes that are happening, then it's time to move forward with your plan.

3) Third, Develop an Implementation Plan

1. Define what you want to achieve: performance improvement in support functions. 2. Identify and prioritise specific targets, measures, and goals for each target: 3. Determine how to measure progress against these targets and set a timeline for achieving them; 4. Set up a system of accountability, including measures of effectiveness such as data dashboards that show actual results against desired results and KPIs that monitor all aspects of digital service delivery. Finally, consider who needs to be involved in managing the process and allocate resources accordingly.

4) Manage Digital Transformation and Measure Results

Digital transformation can be a daunting task for any organisation, but it is especially challenging for small and medium enterprises (SMEs) in India. However, by following these five key success factors, SMEs can successfully manage their digital transformation journey 1) Understand customer needs; 2) Invest in people with expertise; 3) Take risks; 4) Stick to quality standards, and 5) Establish KPIs that work for you. If an SME does not have the resources or know-how to achieve its digital transformation goals, partnering with an expert may be the best option.

Conclusions

1. The first and most important success factor for SMEs in India is to have a clear understanding of what digital transformation actually entails.

2. The second success factor is to have a clear vision and strategy for how you want to use technology to improve your business.

3. The third success factor is making sure you have the right team in place to execute your digital transformation strategy.

4. The fourth success factor is having the right partners and suppliers who can support you on your journey.

5. And finally, keep an open mind and stay curious about new opportunities as they arise: don't be afraid to change course if it feels like things are not working out.