Digital transformation is now considered an essential step in order for businesses to survive and thrive in this digital age. The reality, though, is that despite this rising trend, several companies have yet to commence their digital transformation journey. Sooner or later, as the trend progresses even more, several of these companies may end up forced to undergo digital transformation in order to survive and remain competitive.
However, despite this push, it is important for the step to not be rashed and impulsively taken. In order for digital transformation to turn out successful, several things need to be considered. Hence, it is important for the digital transformation strategy to be well crafted and well thought of.
Before starting this digital transformation journey, a number of things need to be taken into consideration. Let’s look into 5 key questions that companies can ask before they start their digital transformation journey.
5 questions to ask before starting the digital transformation journey
1. What is the current state of your company in terms of operations, processes, and technology?
When it comes to this digital transformation journey, it is important for you to thoroughly analyze your current state in order to know how to effectively bridge the gap between where you are and where you want to be. To do this, a complete and comprehensive analysis of your company must be conducted. In doing so, a number of things can be focused on, such as:
- Which processes work and which ones don’t work
- The team’s opinions about the current technology
- Pain points in systems and operations
Knowing such details could help you get an in-depth understanding of your company’s current state. This could also help you in determining which concern is of priority. When doing so, it is important to take into account two types of experiences – the employees’ experience and the customers’ experience.
Digital transformation can then be utilized in order to boost everyone’s experience. The approach may be different from business to business and industry to industry.
2. What is the goal of your digital transformation journey and how will you achieve it?
Knowing the destination sets the direction. Once you have finished analyzing your company’s current state, you can then devise your digital transformation roadmap. It is important for this road map to be feasible and realistic. As a start, core functions and processes can be focused on. Later on, the digital transformation can spread to other segments as well.
It is important to know that the digital transformation journey would involve not just time and effort but also adjustments for the people on board. Hence, when devising your digital transformation roadmap, it is also important to think of the people who would have to adjust to the changes. Upskilling and training may be necessary.
3. Are there any risks that would arise because of the digital transformation?
Certain risks may result from the digital transformation process. Hence, it is important for companies to take these potential risks into account even before starting the digital transformation journey. Delloite cites ten various areas of risks that companies should take into account. These are:
- Data leakage
It would be helpful for companies to thoroughly think through the potential problems that may arise in these specific areas. Early identification and prediction of such risks would help the team to be more effective in mitigating them before they lead to unsurmountable damage.
4. How much will you allocate for the digital transformation project?
In order to meet the digital transformation goals, it is important to have a budget that is sufficient enough to support the process. Discussing the budget prior to the commencement of the project is a crucial step.
To plan for the budget, make sure to thoroughly discuss with the stakeholders the value and importance of the digital transformation journey. Being on the same page would help you be able to set a fit budget. It would also be helpful to brainstorm for ways to maximize the budget.
5. How can you cultivate a culture of growth and innovation within your existing team?
The roles of the leadership and the onboarding team are crucial to the outcome of the digital transformation journey. An organization is not an organization without its people. Hence, even before commencing the digital transformation journey, those at the forefront should not forget the people who would have to undergo this transition.
Cultivating a culture of adaptability and innovation is key. This responsibility starts with the leaders and those at the forefront of the digital transformation efforts. However, it must not end with leadership. This culture should permeate through every member of the organization.
Despite their vital role, technology and tools are not all that there is to digital transformation. A successful turnout cannot be attributed to a single factor. Thus, companies must look beyond and beneath the surface, even before the journey begins, in order to maximize the efforts to be undertaken.
ICTS Custom Software is a Vietnam-based software development boutique that focuses on cutting-edge technologies. We help SMEs (small and medium enterprises) digitize their business and handle the digital transformation in the most professional way, at a reasonable budget.
Contact us and discover what benefits we can bring to your digital transformation project.
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