How to Develop Your Digital Transformation Strategy?

Did you know that around 70% of digital transformation initiatives fail? The number might be shocking, but it’s the truth. The reasons behind this can be countless, depending on the business type, but the most common one is the failure to build an appropriate digital transformation strategy.

Today, where customer expectations are changing swiftly, a business must build a well-defined transformation strategy to meet the customer needs and grow in the competition. This will not only help your business shine but also aid in overcoming operational inefficiencies and customer dissatisfaction issues. 

However, building a working roadmap is not always easy. If you try to make the plan akin to your competitor’s, you might find yourself inside the trap of that shocking number, and you definitely don’t want your business to be part of it. Hence, it is advised to work with a digital transformation company to build a definitive strategy for success that completely relates to the needs of your business. 

Understanding Digital Transformation Strategy

Today, it is vital for a brand to stay aligned with the evolving market by aptly applying digital transformation. However, this successful transformation requires a working strategy for a business or brand.

A successful strategy works as a life force behind the growth and sustainability of a modern business. However, the question to consider is: What is a digital transformation strategy? How can it help businesses?

It’s a roadmap to allay reliance on manual labor. Simply put, it’s a comprehensive plan outlining how a business can utilize digital technologies to improve its process and enhance operational efficiency. This strategy usually involves changes to certain things that help a business:

• To invest in legacy system modernization to stay relevant to present-day needs. 
• Improves internal business processes, which reduces overhead costs.
• Introduction of modern technologies for better customer experience

Why a Business Must Invest in Digital Technology Transformation? 

Every business, not just yours, wants to stay on top among the competitors. Here, businesses that take a step towards investing in business transformation strategy are meeting their envisioned goals. A successful roadmap aligns with the business requirements and scope, ensuring the transformation focus remains clear.

Whether one wants to overcome inefficiency issues or drive innovation in their business, an expert-packed digital transformation strategy is a strong backbone. Hence, a business must clearly understand its purpose and how it wants to achieve it. 

The 5 Ps of a Successful Digital Transformation Roadmap

A roadmap to a successful digital transformation revolves around the five Ps. This holistic approach includes people, policy, process, partners, and platforms. Each P holds a significant value, and neglecting the integration of one can result in some consequences and friction. Here they are:

• People

The core consists of people, including leaders, employees, stakeholders, and others. Their skills, capabilities, and buy-in are of prime importance. Hence, a business must invest in training, improve communication, and effectively monitor change management to ensure everyone stays aligned with project goals. 

• Policy 

Policy is a substantial fence governing how digital transformation policy is formulated. This includes directives, procedures, and guidance addressing data or IT infrastructure management needs. Develop specific policies that adhere to these digital initiatives and meet these requirements. 

• Process

This entails streamlining existing business processes using digital technologies like Robotic Process Automation (RPA) to reduce human intervention, IoT to improve operational efficiency, AI for data-backed decision-making, and more. 

• Partners

To build a successful digital transformation strategy, a business must actively emphasize the importance of collaboration and alliance. This includes working with technology vendors or partners that help to ignite the transformation more precisely. 

• Platforms

This refers to the tech-specific infrastructure that supports a business’s requirements to be digitally transformed. However, this legacy software modernization depends on:

• The choice of suitable hardware and software for a business.
• Wisely investing in cloud computing for high-end performance and availability.
• You must ensure interoperability between systems.
• Finding and choosing platforms that are apt and accurate for handling future growth. 

Why Should You Look For a Digital Transformation Framework? 

When you are looking to build a successful digital transformation strategy, it is essential to have a structured approach. This is where a framework (a set of guidelines) plays a pivotal role. What role does it play, and how beneficial is it?  

• This digital transformation strategy framework helps an organization integrate digital technologies into every aspect of its operations. 
• An appropriate integration helps a business identify and modify its current position by staying on track. 
• A business can prioritize what should be done first and manage specific changes by applying a practical approach. 

Digital Transformation Strategy Based on Diverse Business Types

Every business works and operates differently. So, will building a single strategy for every organization be wise? The answer is a NO. The core focus would differ when building a business transformation strategy for different firms. This includes:

Small Businesses

Their primary focus would be brand improvement, better customer engagement, a strong online presence, and a streamlined workflow.

The key initiatives they can take:

• Invest in building a user-friendly website with mobile optimization. 
• Create accelerated mobile pages to achieve better search engine rankings.
• Actively and wisely utilize social media platforms for brand visibility.
• Implement cloud-based solutions for easy accessibility. 

Mid-size Businesses

Their core focus would be improving customer experience, gaining valuable insights from data, and automating work processes to increase efficiency.  

Key Initiatives they can take: 

• They can implement or invest in ERP system integration or CRM development to streamline business operations. 
• Invest in building a robust data analytics platform to track key organizational metrics.
• We can look at the usage of AI in marketing automation for need-based campaign development.  
• They can check for advanced cloud-supported solutions to reduce storage-related cost and accessibility. 

Large Enterprises

The core focus of market leaders is very different from others when building an enterprise digital transformation strategy. This includes using modern technologies to welcome innovation, optimize complex operations, and create a data-backed culture. 

To adopt digital transformation, the measures they can take are as follows:

• They can use more advanced AI and machine learning and opt for AI consulting company to develop appropriate integrations or solutions. 
• Can build a more robust digital ecosystem to connect with partners and collaborators.
• Can actively implement IoT solutions in automotive to effectively monitor and optimize business operations. 
• They can invest in cybersecurity solutions to protect sensitive user data. 

How Does Successful Digital Transformation Impact SMEs and Large Enterprises?

Understanding the impact of digital technology transformation among SMEs and large enterprises is crucial. Both have different approaches towards modernization, and a successful change can impact them differently. These are:

Why Do You Need a Digital Business Transformation Strategy?

It is quintessential for a business to stay on top of the marketing curve to ensure competitiveness. A rigid approach ensures lagging behind the curve. Hence, adequately applying the change, which is digital transformation, can benefit a business in various ways:  

• Effective Risk Management

Modern tools and analytics can help a growing business like yours mitigate the risks with data-backed decisions. 

• Stay Competitive

Digital transformation of business aids in embracing innovative and agile technologies and methodologies that enable you to outperform your competition and maintain a distinctive edge. 

• Reduction in Overall Cost

Using current-day tools for automation and streamlining business processes will reduce manual work, lowering operational costs. 

• Identify and Focus on Areas of Improvement

The use of advanced or big data analytics helps a business gain data-backed insights. This lets them identify areas for improvement and areas for lagging. 

• Predict Customer Needs

In custom software development, using modern technologies and predictive analysis helps a business understand a customer’s requirements more precisely. 

Who Should Be Involved in Developing a Digital Transformation Strategy?

Building a successful strategy does not just relate to one person or a team; it is a collaborative approach. This means that the active involvement in output from every person in the organization can lead to the envisioned vision. 

• Senior Executives

They are the ones with vision who outline the entire change process. They approve major decisions regarding technology investments, budget allocation, and change management initiatives.  

• IT Leaders

They evaluate existing IT infrastructure and identify whether it can be improved. They also develop technical roadmaps and project plans. 

• Business Leaders

Business leaders from different departments identify business challenges and opportunities through a well-formed digital marketing strategy. 

• End Users

The end users can provide potential feedback on the digital solutions so the business can undergo the improvement process and meet the required needs. 

• External Experts

External company partners with specialized knowledge in emerging technologies provide industry-specific knowledge to excel better than before the business digital transformation.

How to Create a Working Digital Transformation Strategy?

Once you have identified who the right people are to build the strategy. Now, the point to focus on is its creation. This includes you to perform certain specific steps, like: 

• Identify Objectives

The first step in developing a success-focused digital transformation strategy is identifying the objectives that motivate you to implement it. This includes:

• Defining what transformation means to your business and how it will impact your firm.
• Clearly include the specific goals you want to achieve through modernization. 

• Assess Current State

Now, after determining the objectives, move ahead and look at the present state of your business. This means where you stand now, and you can do this by:

• Conduct a comprehensive audit of your existing technology to identify weaknesses and strengths.
• Must analyze customer behavior and the feedback received to understand their pain point.
• Assess the accessibility and data quality to determine its potential for better insights. 

• Check on Key Areas of Transformation 

It is crucial to understand where you are lagging and the key areas that require a transformation to meet present-day needs. This includes: 

• Check on operations that can be automated and streamlined. 
• Discover ways to improve your digital presence, either invest in cloud application development or anything more specific. 

• Select Tools and Technologies

While performing digital technology transformation, a business must choose appropriate tools and technology to stay relevant with the changing market dynamics. You can do this by:

• Performing in-depth research that precisely relates to the needs and niche of your business.
• Include modern-day technologies like Blockchan for better transparency, IoT for controlled monitoring, cloud computing for easy accessibility, and more.
• Pick the more feasible ones that align with your priorities more strategically.

• Build a Digital Transformation Strategy Roadmap

Once you have performed all the above steps, focus on building a roadmap to a successful digital business strategy. This entails steps like:

• Break it down into clear and more manageable phases.
• Build a plan to monitor the change management within the organization more effectively.
• Identify the budget, skills, and expertise to allocate resources while building a successful digital transformation strategy.

• Implement a Digital Transformation Plan

Now that you have built a well-structured digital transformation strategy, it is wise to implement it. 

• Mobilize cross-functional teams to execute the strategy practically.
• Train your team to effectively facilitate the transition.
• Focus on applying a culture of innovation and collaboration. 

• Monitor and Evaluate IT Transformation Strategy

It is wise to evaluate your plan to ensure the formulation of a robust and current-day specific transformation plan. 

• Formulate merits and KPIs to assess your digital transformation plan’s success.
• Continuously review progress and gather feedback from stakeholders for improvement. 

Factors to Consider For A Successful Digital Transformation 

You must consider some vital factors in building a successful roadmap for digital transformation. These include

• Cybersecurity

You must prioritize security measures that are adequate to combat the vulnerabilities of the current market. Hence, cybersecurity measures are essential in protecting sensitive data. 

• Talent Development

Focus on upskilling your workforce to effectively use modern technologies and methods. For example, you might want to migrate your data to a cloud platform. But without skills and a comprehensive cloud migration strategy, this seems complex. Upskilling can be game-changing here. 

• Partnership

You must considerably focus on partnering with external experts or vendors to work with specialized talents in the industry. This will help you stay aligned with the evolving needs of the market. 

Real-life Companies Applying Digital Transformation Strategy With Expertise

Various companies have showcased that a successful digital transformation can make them the catalysts of change. They have also showcased that this transformation is not just about adopting new technologies but also about how a business can deliver more value to their users. Here are some notable real-life examples:

How Much Does it Cost to Implement a Digital Transformation Strategy?

Developing a working roadmap that aligns precisely with your business needs and objectives. But, how much does it cost?  This is one of the major questions that you should get the answer to. However, the cost of implementing a digital transformation plan revolves around several objectives, like:

• Scope of Transformation: The scope of transformation, whether you want full-scale or targeted
• Technology and Tools: How much does purchasing or subscribing to a new technology or tool cost?
• Digital Transformation Consulting: Cost related to opting for expert-led digital transformation consulting.
• Integration cost: Expenses for integrating new systems with the existing platforms or infrastructure.

The table below highlights the approximate cost of implementing the digital transformation strategy. 

*Note: The above cost ranges can change depending on a business’s requirements, the project’s scope, and other factors. Hence, it is wise to consult with an expert digital transformation company to become well-versed with the cost as per your needs. 

Partner With SparxIT for an Expert-led Digital Transformation Strategy 

Adopting change positively is necessary for a business to stay sustainable in the market. Digital transformation has been the key driver in recent years, and building a working strategy for its adoption with a skilled company like SparxIT can play a game-changing role for your business.  We are a digital transformation company that has been building business-specific strategies for clients over the years.

Our team is the catalyst for change. We know that every organization is different, so we take time to analyze its strengths and weaknesses. This helps us build a clear and compelling roadmap with precision and perfection. We leverage emerging technologies, like AI, blockchain, and IoT, to create innovative solutions that align with current-day needs. 

Whether your needs relate to DevOps Automation or building a custom application with blockchain and AI integration, our team helps complete the project you envisioned. You can collaborate with us to achieve a success-focused digital business transformation. Embrace the change and let SparxIT help you navigate the transformation complexities with expertise.