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Digital transformation is a trend that goes beyond just an option and has now become a necessity. Due to the ongoing pandemic, the transformation of business is vital not just for businesses to thrive but for businesses to survive. The pandemic has shown the necessity of transformative technology in the midst of a huge shift in how physical businesses do business.

While a lot of traditional businesses have been able to function at ease without the need for digital transformation before the pandemic, times have changed and without the transformation of business, these businesses have slowly faded. Of course, the digital transformation of business is not always a guarantee that they will succeed. This is why there are 7 key pieces in order for the business to have an effective digital transformation strategy.

Here are 7 key pieces for an effective digital transformation strategy:

1. Tell a story: How will digital transformation help the company

Catering To Needs. Before everything else, it is important to understand exactly what transformation technology can do for the company, why it is needed, and what parts of this transformation of business will be needed in order to make the shift effective. There are a lot of different methodologies and different factors that could either work well with a business or not be effective.

Strategies for Success. It is important to identify within the businesses’ story what exactly the business would need in order for the transformation of business to be successful. This includes the different approaches, the different digital transformation models, and what can be taken from different transformation technology strategies that work.

2. Align transformation with business’ goals

Once the particular segments of digital transformation has been identified, the next step is to slowly align this with the business’ original goals. While certain goals might need to be modified, it is important to not give up the heart of the business when adapting transformation technology.

Make sure to carefully craft the digital transformation strategy around what the business’ original goals are. This way, despite adaptation to more sophisticated systems, the business does not lose the essence of what it truly is.

3. Leave room for failure

In every strategy, there will always be things that don’t work and need to be eliminated from the total strategy. This is normal which is why it is important to leave room for testing out the transformation technology before it is completely integrated into the total system.

With this approach, the mistakes made during the integration of new systems won’t damage the business because of the allocation for failure. Although this might seem unnecessary and a waste of resources, this eliminates the risk of bigger issues that could also cost more to fix.

4. What skills can be digitized

Identifying. While certain skills cannot be digitized, others can. Making a list of the given skills that would be needed in order to make the whole system run smoothly is important for the owner to see which skills can adapt to transformation technology and which skills have to remain.

Testing. For the skills that can adapt to digital transformation, it is better to slowly start the transition by first testing it out. This way, the business can slowly go a little more automated. One thing about technology that makes the transformation of business effective is the automation it is able to present in the end.

5. Try experimenting

Start Experimenting Small. There are different solutions to different skills that are to be automated and this is why it is important to experiment at first without going all in. Experimentation, however, should be done with the right mindset which is finding the perfect transformation technology that fits with the business and not the other way around.

Finding A System. Initially, it is better to find a system that can substitute certain skills needed to run the business than to modify certain skills in order to adopt the digital transformation. Of course, this is a case to case basis so the owner should really determine whether adopting a new methodology would be beneficial or not.

6. Have good risk management

Although technology is oftentimes referred to as efficient, automatic, and very systematic, this does not mean that it is perfect. There should also be room for failure. Instead of rushing into digital transformation, it is important to go step-by-step.

By going slowly, every time a new system does not work, business owners can easily take a step back instead of having to start from scratch once more. Risk management also helps conserve resources as digital transformation might be quite costly for some.

7. Prepare for change

Change is oftentimes uncomfortable but this does not mean business owners should stop there. The change made within a business has to be slowly taken in by the business as a whole and although there will be a lot of adjustments, these are still for the better.

At first, there will still be a lot of adjusting needed to be made to the new protocols, systems, and overall feel of transformation technology but this is necessary to make the transformation of business possible.

If there is something that this 2020 has taught us about economics (no matter what industry) digitalization is one of the unstoppable ice ages which means that business owners will have to adapt to transformation technology or be left behind. Sad but true, digital transformation was highlighted due to the pandemic wherein the more tech savvy companies were able to survive while the traditional businesses struggled.

The transformation of business is not an easy step to take for those traditional businesses that have been able to cultivate a system that works and that has been working for quite a long time. Now, businesses need to adapt or survive.

ICTS is a Vietnam-based software development boutique that focuses on cutting-edge technologies. We help SMEs (small and medium enterprises) digitalize their business and handle the digital transformation in the most professional way, at a reasonable budget.

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