Digital transformation is a term you may be hearing a lot these days, and for good reason. According to recent studies and market analyses, the global digital transformation market is expected to double from 469.8 Billion USD in 2020 to 1,009.8 Billion USD.
But what exactly is digital transformation and how can it benefit your business? Whether your company is deep into its digital innovation efforts or if this is your first time hearing about the topic, we’ve provided a deep dive into the buzz around digital transformation.
Keep reading for a breakdown of why digital transformation is more important than ever and how to implement digital strategies that will improve your organization’s customer experience and general workflow in the modern era.
Digital Transformation Definition
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First thing’s first, let’s define digital transformation with some help from DocStar:
“What digital transformation isn’t is technology alone – it’s strategy.
The technology will continually evolve to incorporate business process automation, robotic process automation, and artificial intelligence. Focusing on one or more of these or other technologies is shortsighted – it’s the way you implement these technologies that’s important. […] digital transformation can’t just focus on the online world – it needs to bridge the gap between online and offline.
It should incorporate the enterprise, supply chain, partners, customers, and employees in terms of strategy and execution.”
DocStar summed it up pretty well and cleared up a lot of confusion around this term. Many people hear “digital transformation” and think of merely digitizing their paper files into electronic documents or hopping online with a TikTok account for marketing purposes, but digital transformation involves incorporating multiple forms of digital technology, software, and artificial intelligence into daily business processes.
Digital transformation is all about the bigger picture of modernization at every level of the organization. Within a digital transformation framework, technology and software are implemented to make processes easier for everyone from the CEO to the new hire to the customer. These modernization strategies are also built to grow with your company and your customers as you expand and as new digital innovations are made.
Digital Transformation Success Stories
When we think of the real success stories in digital transformation a few companies come to mind. Netflix is one of the best digital transformation examples. Netflix could have easily died along with Blockbuster movie rental stores, but instead, Netflix imagined new possibilities in their business strategy and successfully developed a digital platform with the user experience in mind.
The companies that have the most successful transformation hone in on the digital experience and remain on their toes, quick to adapt to consumer needs. Netflix adapted to the market demands and created a new status quo in streaming services. Companies like Amazon also made huge strides in customer experience optimization with a modernization strategy that has changed the way we shop from physical stores to eCommerce.
True industry leaders know how to focus on customer experience systems by leaning into innovation and digital technology. The ability to think outside the box and welcome new solutions will create a better future for businesses and consumers.
The Acceleration of Innovation
Innovations in technology have accelerated at an all-time high since the invention of the computer and the mobile phone. Businesses and society have imagined new ways of connecting, solving problems, and speeding up procedures. Within only the past year we have seen a huge acceleration in technology and digital software with the onset of the Covid-19 pandemic as the world had to imagine a new way of living, working, and connecting.
These trends in digital innovation will only continue into the future and it’s better to hop on board than be left in the dust. A 2019 study showed that 70% of organizations have a digital transformation strategy or are working on one. Now that we’ve reached a post-pandemic 2021, those numbers are likely even higher. The sad truth is that businesses that aren’t leaning into digital initiatives will be left behind.
of organizations have a digital transformation strategy or are working on one.
Your organization needs to adapt to new technology and the ever-changing digital status quo or you risk losing consumers who have outgrown aged business models and practices. But don’t stress! This is a situation that all business owners are facing, so you aren’t alone. Instead of fearing the future of digital transformation, it’s time to welcome it with open arms as we imagine new possibilities.
Imagine Innovations in your Business Capabilities
Digital transformation is all about getting creative and imagining innovations in your business capabilities with the help of technology. This is the time to brainstorm what you can improve about your business processes.
Take a deep dive into what is and isn’t working in your various business models and processes. What can you do to speed up manufacturing or deliveries? How can you give customers a better-personalized experience? What smart technologies have you read about recently that can be utilized in your business? Posing these questions to your team in all departments will begin to cook up some new ideas that will only benefit your organization’s growth.
The top benefits of adopting a digital model include improving operational efficiency, meeting customer expectations, and improving new product quality. Consider these areas while you analyze your business models, products, and workflows.
Once you can take a deep look at your company as it stands right now, you can begin to envision how it can grow with the acceleration of innovation. With that vision, you can set goals and take concrete steps in your digital transformation journey.
Setting Goals for Your Company
Once you have a vision of your company’s digital future, you can begin to set goals. Transformation doesn’t happen in a day but planning that digital transformation can start right now.
What do you want your company to look like in a year? Sometimes it’s easier to break up your digital transformation initiative goals by the department. Once you have that vision for faster procedures on the manufacturing end or more personalized customer experiences for your consumer basis, you can set goals for each department and your company as a goal.
Remember that digital transformation isn’t merely one step in modernization, it is the collection of new technologies and software working together in different areas of your business to improve overall efficiency so that you can grow with modernization. This is why you should set digital technology goals within each department and for your company as a whole.
By the year 2025, where do you want to stand? Do you want your company to be an industry leader? Do you want to increase revenue by X amount? Do you want to penetrate the eCommerce market? Create a smoother onboarding employee experience?
In 2018, studies showed that 39% of executives expected to benefit from their digital transformation initiatives in 3 to 5 years. The companies that are benefiting today are the companies that set goals for this week and goals for years from now. Thinking ahead prepares you for the future as innovation accelerates. Set some goals, big and small, and then you can find some partners and strategies for a successful transformation.
Develop a Digital Transformation Strategy
Developing a digital transformation strategy is a team effort. This is where research, collaboration, and partnerships come in. You may have imagined a vision for your company and set some goals, but tackling the digital transformation process comes with challenges on all fronts. Different aspects of business require a unique modernization strategy.
Many companies fall short in their digital transformation efforts for several common challenges: they lack direction and they try to do it all themselves. The digital transformation market is booming right now because experts in the field have partnered with various businesses to help them modernize their procedures and practices. To be successful, your company must take guidance and support from digital transformation leaders.
The partnerships that you make in your digital business transformation strategy will play a key role in your overall transformation. Digital leaders who are responsible for the accelerators of innovation know the ins and outs of end-user experiences and they can also offer predictive maintenance for new market demands. These partners may also see opportunities for new digital capabilities within your company that you didn’t even know were possible while helping you face digital transformation challenges.
Talk to your IT department, shop around for a marketing agency, appoint staff to transformation-specific roles, and look into automation and AI companies.
Your organization’s digital strategy can only benefit from B2B deals that let you focus on running your company while your partners help you run it better for the digital future.
We Can Help
At Mosaic, we are here to help you begin your digital journey and lay the building blocks for true transformation. As you partner with other companies in more advanced technologies, you will need your accounts payable department to be functioning with top speed and accuracy.
The future of accounts payable is automating B2B payments for a smoother, faster process with fewer human errors that cost you profits. The market will soon demand business process optimization solutions like AP automation as it fixes the invoice approval process and businesses choose to ditch the costly paper system that is killing our planet.
Implementing an enterprise content management (ECM) solution will also significantly increase the ease of your digital business transformation journey. ECM will keep your organization’s most valuable documents secure while also reducing costs.
We know the digital capabilities of your HR and AP departments, and we’re here to help you implement smart technologies that will get you up to speed in your digital transformation projects. For more information on what we can offer your business, check out our products and services.