Digital Transformation has made a comeback!
VSG Commerce™ confirms Digital Transformation is back in the mainstream as we have talked to over a dozen companies recently across various industries that are looking at full scale digital transformations.
But what is Digital Transformation and why is it such a hot topic?
By definition, Digital Transformation is the change to business operations to get maximum benefit from digital technology. VSG Commerce believes that advancements in technology and competitive pressure is forcing companies to look towards embarking upon digital transformation of their businesses, such as:
- Competitive pressure from companies like Amazon
- Greater availability of cloud based, cross functional solutions
- Standardization and integration of processes
- Impact of data driven artificial intelligence
Full scale Digital Transformation is a major initiative for any company and one that can rapidly get complex and costly. So, where do you start? What steps should you take to create a successful digital transformation within your company?
First – Determine the Value
Determine the value of doing the project by looking at the strategic goals, customer satisfaction and economic impact. Companies need to define what digital transformation means for their business as well as what their goals are before implementing an assortment of new technologies for a problem that is inadequately defined. Put the focus on business outcomes and processes over technologies.
Second – March to End Goals
Like any goal-oriented project plan – companies need to maintain a focus on the desired end-result and work backwards from there. This focus ensures you are marching to an outcome that is the reason for doing the project in the first place. Implementing a technology-first approach to digital transformation is a recipe for disaster. Companies should instead start with a customer-focused end goal in mind.
Third – Support from the Top
Digital transformation needs to be supported by the top executives. All areas of the company need to understand the vision and be engaged in producing the desired outcome in the allotted timeframe. Employ a robust change management process and keep the communication lines open to ensure employees understand what you’re doing and why. Good ideas will frequently come from those employees working with the specific processes you’re trying to change. Make sure they are regularly given a voice throughout any transformational process.
Fourth – Evaluate and Adjust
Digital transformation takes time and should be completed in an incremental fashion. There are many layers which are impacted and involve much more than a technology solution. Adjustments may be needed and there will be knowledge gleaned from each stage of the project before moving to the next stage. Digital transformation is a continuing process and it changes the way your business functions.
In summary, the focus of digital transformation is the change to business operations to get maximum benefit from digital technology. Companies will need to define the term “transformation” as not just a change in technology, but as the transformation of the business model to one that performs well at all levels within a digitally driven world.
To learn how VSG and the Oracle Commerce platform can help you with your digital transformation,
contact us at 847-854-5990