Steps to Built a Successful Digital Transformation Strategy in Business

Introduction

A digital transformation strategy is the process of using digital technology into all aspects of a business, fundamentally reshaping how a value is delivered to customers, how internal operations are managed, how the business operates, how to serves customers, specially the way things work and how it adapts to market changes. A well defined digital transformation strategy is a road map for how a business plans to achieve its digital transformation goals. It streamlines your internal work  flows and makes it easier to engage with customers across digital interfaces.  It is not just about adopting new technologies and strategic changes in processes, but it also about developing a new culture and mindset that embraces change and innovation.

Types of a Digital Transformation Strategy

There are four main  types of digital transformation strategy.

Ø Business Model Transformation

Ø Business Domain Transformation

Ø Business Process Transformation

Ø Cloud Transformation

Business Model Transformation

A business model is basically strategic plan of how a company will make money, it is the first type of digital transformation strategy in business. Business model transformation, or simply a business transformation, relates to fundamental changes in the way organizations operate. This transformation include changes in organizational structure, operational processes, company goals and it typically requires a significant shift in how a business creates, captures, delivers and monetized value. Business model transformation is  typically involves changing core components like who the company serves, how it deliver products or services, or how it earns revenue. 

Example, a business makes electronic parts for a cell phone, like Amazon transformed its business model from an online bookstore to an E-commerce platform.

Business Domain Transformation

Domain transformation in business occurs when an organization or a company expand their business into a new industry sector. In business, domain transformation is essential because new technologies are continuously reshape their products and services. These changes blur company or industry boundaries and it introduce new competitors, so the companies might choose domain transformation strategy due to very tough competition, new technologies and industry changes. As a result, businesses have a significant opportunity to explore new markets, beyond their current scope.

Example, business domain transformation involves moving after a company's current market to explore new ones, like a company develop a new business-to-business (B2B) solution and then it start selling it to other businesses/ companies,  creating a new source of revenue.

Business Process Transformation

Business process transformation is fundamentally redesigning and restructuring existing business processes to achieve significant improvements in operational efficiency and agility. It involves a shift in correct mindset, operations, culture, and technology to meet new objectives and adapt to the ever evolving business landscape. In business, the seven phases of digital transformation strategy provide a structured road map to solve all the problems and complexities. Understanding and effectively implementing each step is essential for a successful business transformation process because it helps to enhances overall business performance.   

Example, business process transformation include the operational procedures like marketing & sales, payments and shipping processes.      

Cloud Transformation

Cloud transformation is a major component of the digital transformation strategy, it involves in the approach you take to make your transition to the cloud as seamless as possible. Cloud transformation is the process of moving your business applications, data and IT infrastructure from traditional on-site servers to the cloud. It unlocks a range of benefits and can improve your business operations profitability. It can be as simple as using an established digital transformation model to keep your cloud transformation on track.  Through cloud transformation its easier to stay protective and competitive, enabling business growth.

Example, the best example of cloud transformation is Netflix’s migration to Amazon Web Services that is began in 2008 and its completed in 2016.

Key Components

Technology

Technology is typically refers to systems, devices, or solutions that are easy to understand, maintain and operate. These technologies often have straight forward designs and functions, making them accessible to a wide range of users without requiring extensive training or expertise. Technology is the product of transferring scientific knowledge to practical use, different forms of technology came about from people trying to find more efficient ways to do things and testing new ideas. In digital transformation strategy, technology is constantly improving and generally aims to make processes easier for people. Technology became most advanced through a cycle of invention, innovation and diffusion.

Example, the invention of the wheel led to the innovation of the cart and eventually  this  various  forms  of  transportation.

Processes 

In business processes are the main key component ,to streamline and optimize existing processes, new digital processes, it also keep focus on identifying bottlenecks, mapping current workflows, leverage technology and automating repetitive tasks. Processes are made up of individual tasks that must be done in a particular sequence to complete an item. Even when you map your business processes, you clearly identify every step in the process and make sure everyone knows from where one task ends and another begins.

People

Actually, the digital transformation strategy is all about using technology to change existing business models or to create new business models, optimize processes,  and transform organizational culture. This shows that the real change you are trying to achieve it totally lies with that people who are the part of your organization or company like ,the managers of your business model, executors of your processes, and custodians of your urban culture. Organizations that focus on who these people are and how digital transformation strategies impact them are more likely to succeed in their quest.

Platforms

Digital transformation strategy rely on many platforms that helps to make it popular arranged and appropriate to work with an organization or a company. Low code and no code platforms are indeed types of digital transformation platforms, it allow users with limited coding experience to build and deploy applications, accelerating development and innovation. These platforms are software development tools that are designed to simplify or accelerate application, it allow users to built applications with no coding. Low code platforms require less coding than traditional methods, while on the other hand no code platforms allow users to built applications entirely without writing any code. 

Users do not need any coding experience to build the applications, it allow programmers and non-programmers to create software applications its closely related to visual programming languages. The demand for no code development has grown day by day because of its speed and agility, it provides for the businesses to run, by overcoming the limitations of traditional development, it has became one of the best platforms to develop applications through digital transformation.

Culture

Culture of digital transformation strategy refers that how  people use and interact with digital technologies, a culture that supports  innovation and digital change is created from a blend of capable digital tools, employee support,  and communication between them. The digital technology will help to explode organizational transformation, but only if it is supported by a staff that is fully motivated to embrace this change. The connection between culture and the successful implementation is a foundation that shapes and influences the behaviors, attitudes,  and actions of individuals within an organization.  It  plays an important role in driving and sustaining the necessary changes, it encourage collaboration, provide resources for promoting creative thinking.

Implementation and Execution

Change Management

A change management strategy is a defined framework and set of protocols that organizations can rely on when making fundamental shifts to internal operations, goals or technologies. Change management strategy is a detailed plan to facilitate the effective implementation of an organizational changes, these changes play a vital role in business structures, processes or a culture. Basically, it provides a framework and guidance on how changes are identified, approved, evaluated,  and implemented. Digital transformation strategy is to ease the innovation and implementation for staff at all levels and increase its chance of success in change management. All management should be aware of it that change in management is essential because innovation is the key of an implementation.

Continuous Improvement

Digital transformation and continuous improvement are often merge because they both keep focus on change and improvement. Yet, its important to recognize that continuous improvement is a basic element that supports digital transformation success. A strong continuous improvement culture fosters a mindset of adaptability, decision making, data driven, problem solving. Continuous improvement skills involves data analysis, problem solving, optimization and processes are invaluable assets for teams embarking on digital transformation journeys. Continuous improvement is a proactive approach to enhancing processes, products, or services over time, these skills enable employees to evaluate new technologies, identify areas for improvement, and adapt to the changing demands of the digital landscape.

Iterative Approach

An iterative process is a methodology where tasks, projects or solutions are developed in incremental cycles where each iteration built on previous one. It is the practice of building, refining, and improving a project or product. The iterative development process create, test, and revise until they are satisfied with the end result. An  iterative process begins with the first iteration, where the development team creates a basic or simple version that meets the initial project requirements. Then, through user feedback from testers, stakeholders, or focus groups, the team fine tunes the product adding new features, improving functionality, and fixing any issues. It built a loop structure which starts from the first iteration and continues until the final product meets the project goals. Iterative approach is a common and value able method, its not a building block of each project, but its a powerful tool for managing projects with evolving requirements or where continuous improvement is crucial.

In today's fast changing business world, the digital transformation strategy becomes more essential for companies to stay competitive and relevant. Digital transformation strategy covers digital technologies & digital leadership, culture, organization & processes, employees & skills, innovation & products, customers,  and digital strategy, prioritization, assessment, change management, iterative approach. Digital transformation strategy establish a clear vision to achieve the aims of what the organization aims to achieve, it evaluate existing skills, processes, and technologies to identify their strengths and weaknesses. This strategy creates a cultural change that embraces experimentation, innovation and continue learning, its built a team structure in an organization or a company that how people manage their work as a team.