Today, embracing technology is critical to your company’s success, but many senior executives are hesitant to engage on the digital transformation road. Digital transformation is a very complex concept, there are many myths surrounding it. In this article, we will bust the 4 digital transformation myths.
Assumptions about transformation frequently prevent leaders from fully implementing digital strategies, either because they are afraid that they will have a negative impact on their budget, deter employees and customers, or because they are not confident enough in their understanding of digital to take the risk.
However, many of these perceived barriers are fallacies, and digital transformation can help a company in a variety of ways.
Myth: Digital transformation is solely about process and technology.
Without a doubt, digital transformation refers to the use of digital services and products to change the way people do business.
However, when considered just within those constraints, some may infer that it is a ready-made product. Those packages indeed exist, but they are only part of the picture.
Instead, think about the influence on people and the experiences your company wants to provide.
Without this forethought and pre-determined goals, digital transformation will not yield the best results. Furthermore, not everyone will gain in the same way, regardless of industry or generation.
Consider the demographics of clients in the financial services industry. In general, Baby Boomers may favor printed communications, but younger generations are more likely to prefer digital.
If a bank decides to make all of its client communications digital, it risks losing a sizable and profitable section of its customer base.
The benefits of technology might result in wasted or underutilized investments if the impact on people or their experiences with your business is not assessed and understood.
Myth: All successful digital transformations begin where you’d least expect.
We frequently think of Silicon Valley as the birthplace of innovation. That presumption is frequently valid.
When it comes to digital transformation, however, the most significant breakthroughs might emerge from the most unlikely locations.
Don’t write yourself out just yet, because digital innovation doesn’t often originate from the places you might think.
For example, I formerly worked for an African financial services firm.
They had a vast client base, but they couldn’t transact with them in the ways that many of us are accustomed to – vehicles were scarce, and consumers had to walk miles to the bank just to conduct a transaction.
When the bank understood they needed to make a change, they went to work. The answer was a smartphone, which was still in its infancy at the time.
Despite the fact that the majority of clients lacked vehicles, many had smartphones.
As a result, the bank started on a digital transformation path that centered on the smartphone as the center of consumer interactions with the bank.
As a result, client satisfaction and engagement increased.
Myth: It’s better to be bigger.
The journey of digital transformation is one that cannot be done in a vacuum. I’ve discovered that taking modest steps toward a bigger objective is the most effective strategy.
The more explicit your strategy, the more likely your outcomes will correspond to your objectives.
When viewed in broad terms, digital transformation can be overwhelming and perplexing.
I recommend concentrating on particular objectives and trying to ensure that the objectives solve problems and improve experiences.
This necessitates a thorough and enthusiastic knowledge of your industry, your customer, and your customer’s customer.
Take, for example, the retail industry. In my perspective, improving overall experiences through personalization is the first step in a successful digital transformation journey for shops.
Finding strategies to encourage team members while simultaneously getting a better grasp of customer patterns and purchasing decisions can lead to insights that can be leveraged across many different touchpoints.
The number of customers in the store, the number of purchases made, and the quality of those purchases may all be used to tailor upsell and cross-sell chances to each customer’s preferences, as well as identify team members’ strengths.
In the end, this information can help people make better decisions and have better work and customer experiences.
More than technology is required to approach digital transformation. It necessitates a grasp of people’s wants and desires.
This perspective may not always be shared by those at the top of an organization.
Consider investing in focus groups, creating communities, soliciting feedback, and actually listening to the outcomes to overcome this.
Use these insights to figure out what problem you need to fix and stick to it. This will provide the maximum value to your company, your team, and your customers.
Myth: You must accomplish everything at once in order to succeed.
In actuality, attempting to accomplish everything at once increases the likelihood of failure. Winners focus activities and create transformation plans that provide a steady stream of progress.
They don’t aim to be the best in class everywhere; instead, they focus on the areas that are most important to their organization.
A European bank struggling to change its core banking system was not making the progress it desired.
The bank was able to focus on delivering progress in the areas that mattered most by pausing to reorganize migration plans.
The bank was able to accomplish its strategic goals thanks to a redesigned business transformation plan that spelled out graded progress.
Of course, simply debunking these beliefs will not automatically propel a company into the 8%, the select group of businesses reaping substantial benefits from their digital technology expenditures.
However, a revitalized approach to a successful transition may begin with a clear understanding of what is required—and an acknowledgment that change is tough.
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