Having A Digital Transformation Strategy in 2023
New Year, New Plans – that’s what all businesses aspire to. But no new plan is efficient enough if it’s done based on the same old principles. In 2023, it would be a cliché now to say that the world is moving towards digital technologies, however, what wouldn’t be cliché is the fact that even today, a majority of small and medium businesses (SMBs) operate their business processes based on manual intervention, disintegrated tools and are far off from the idea of digitally transforming their businesses.
What many businesses don’t realise is that as the world continues to become more digital, small, and medium businesses must have a digital transformation strategy in place to ensure they remain competitive in the coming years.
Digital transformation is a key concept for small and medium businesses in today’s world. It is not just about introducing a new piece of technology into the business but rather allowing businesses to leverage a combination of the latest technologies and platforms to create a solution specifically for the business that helps the business streamline processes, increase customer engagement, and improve operational efficiency.
Digital Transformation Benefits For Business
The 3 Key business benefits that digital transformation and process optimisation provides are:
Increased Efficiency & Productivity
Digital transformation can help businesses automate manual processes, streamline operations, and reduce costs. This can result in increased efficiency and productivity. From my own personal experience, businesses have been able to reduce their costs by as much as 1/3rd and used that to fuel their operations to growth.
Improved Customer Experience
By leveraging digital technologies, businesses can create a seamless and personalised customer experience, leading to increased customer engagement and loyalty. Through integrated processes, faster response rate and better insights, businesses have been able to significantly improve their CSAT and NPS scores.
Increased Competitive Advantage
Speed and scalability are like the wings to a business willing to fly high. A good digital transformation strategy provides just that. Additionally, by utilising digital technologies, businesses can develop innovative products and services that set them apart from their competitors.
Phases of Digital Transformation
Digital transformation is not always a plug-and-play solution for all businesses. It is a step-by-step process that involves a thorough understanding of the business, processes, and stakeholders and then the integration of digital technology into all aspects of a business, including its people.
Develop a Digital Strategy
This strategy should take into consideration the business’s goals and objectives and how digital technologies can help them to reach them. Based on these objectives – a problem is articulated and based on the problem, a solutioned is designed using a host of tools. Necessity of tools is purely dependent on business objectives, maturity and scale. Based on my past experience, 2 tools that most businesses definitely need these days are Microsoft Dynamics 365 and Power BI.
Microsoft Dynamics 365 : It is a powerful tool that enables small and medium businesses to streamline operations and increase customer engagement. It is an all-in-one platform that integrates CRM, ERP, and AI capabilities to help businesses automate processes, enhance customer relationships, and gain insights into customer data. With Microsoft Dynamics 365, businesses can gain real-time insights, create personalised customer experiences, and deploy targeted campaigns to reach active customers.
Power BI Apps: Essential tool for small and medium businesses. It is a powerful data analytics platform that enables businesses to visualise, analyse, and report on their data. With Power BI, businesses can gain real-time insights into their operations, customer behaviour, and more. This allows businesses to make informed decisions quickly and accurately.
Plan For Technologies Implementation
This is where the role of a good digital transformation consultant becomes crucial. An experienced professional should be someone who can not only provide a customised solution based on available tools, but also train the staff on how to best use it. They can also provide advice and guidance on how to optimise the use of digital technologies and this is where maximum companies falter.
When both these phases are complete based as per plan, what one gets is a well-integrated, data-rich, scalable business ready to take on the future competition.
Digital Strategy – Must For Businesses
Having a digital strategy for your business is no more an option in 2023. A good strategy – executed by an experienced partner – can ensure that your business is able to grow through uncertainties, remain competitive in the digital world and ensure long-term success.
A well-planned digital transformation strategy can offer several benefits to your business in 2023. It can help you optimise internal processes, automate tasks, reduce costs, and improve decision-making through data-driven insights. It can also enable you to enhance customer engagement, create new revenue streams, expand into new markets, and gain a competitive edge. Embracing digital transformation can position your business for long-term success and future-proof it against evolving market dynamics.
Failing to have a digital transformation strategy in 2023 can expose your business to several risks. It may result in outdated processes, inefficient operations, decreased productivity, and inability to meet customer demands. It can also lead to missed opportunities, loss of market share, and falling behind competitors who have embraced digital technologies. Businesses that do not prioritise digital transformation may struggle to adapt to changing customer preferences, market disruptions, and technological advancements, which can impact their growth and sustainability.
Customer expectations are constantly evolving, and digital transformation can help businesses meet these changing demands. Through digital technologies, businesses can offer personalised experiences, seamless omnichannel interactions, and convenient self-service options to their customers. Digital transformation can enable businesses to gather and analyse customer data, gain insights into customer preferences and behaviour, and deliver targeted products and services.
Developing a successful digital transformation strategy involves several key steps. These include conducting a thorough assessment of your current state, identifying specific digital goals and objectives, aligning them with your overall business strategy, prioritising digital initiatives, securing leadership buy-in, allocating adequate resources, and defining a clear roadmap for implementation. It is also important to have a plan for change management, including addressing employee resistance, providing training, and monitoring progress.
A smooth implementation of your digital transformation strategy in 2023 requires careful planning and execution. It is important to establish a strong governance structure, assign clear roles and responsibilities, and set up robust project management processes. Effective communication, both internal and external, is crucial to manage expectations, address concerns, and keep stakeholders informed. Regular monitoring of progress, identifying and addressing any roadblocks, and adapting the strategy as needed are also essential.