26 Jul Why your current strategy is insufficient for digital transformation
The constant speed with which technological changes occur causes companies with traditional business models to rethink their future. It is clear that adopting technologies that allow us to continue advancing at the same speed as society, and that offer the possibility of remaining competitive, is essential. Therefore, today there are many companies that are committed to digital transformation projects to enable company growth.
The concept of digital transformation is not just a buzzword. Starting this process is not so simple without fully understanding exactly what is involved, its phases, the benefits and how to adapt it to the situation of each company. Current statistics reveal that 90% of digitization projects fail when designing a successful strategy and, as the AURA team wants you to succeed, we explain the most common mistakes in a digital transformation strategy and the offer key advice to face it successfully.
Digital Transformation Objectives
Digital transformation is necessary for all companies, regardless of their size and the sector in which they operate. As society evolves and becomes increasingly digital, it is vital for organizations to adapt in order to remain competitive.
Thus, it is necessary to design an appropriate digital transformation strategy and integrate the new processes or redesign the old ones within an organization. The objective of a digital company is primarily to continue obtaining results and benefits, without being displaced by new organizations or competitors. Even so, the most sought-after objectives among companies are the following:
1. Attract new and retain existing customers
Digitization offers companies the ability to attract new and retain existing customers. Thanks to new technologies, they can act strategically based on customer behavior patterns, offering a personalized experience, follow-up, offers, etc.
2. Reduce business costs
Beyond the digitization of files and documents to reduce the use of paper, digital transformation in the business environment also cuts expenses that provide little or no results.
3. Streamline decision making
Technology gives us the insight to consider specific data, better understand challenges and find the right solutions capable of delivering value to consumers and positively impacting the business. In this way, it helps companies to streamline and strengthen decision-making.
4. Improve employee productivity and performance
Digital transformation supports the implementation of new processes, activities and the development of new skills that give work a more productive dynamic.
5. Working in a digital environment and promoting remote work
We live in an increasingly virtual environment that requires companies to face the challenges caused by today’s digital society. Opting for digitization creates the possibility of working remotely thanks to cloud resources, automating processes to reduce manual and repetitive work and accessing information in real time, among other advantages.
6. Increase brand visibility
Having digital visibility is as important as building and offering an excellent product or service. Thanks to the Internet, companies can capture the attention of consumers at the right time and on the right platform. Thus, digitization offers companies the necessary information about the public, which facilitates the segmentation of campaigns and the creation of personalized communication actions.
And if the theory is so clear, what is going wrong?
Wrong strategic approach
Digital transformation aims to help companies evolve through technology to a more modern and innovative approach. Therefore, a wrong strategic approach has consequences such as wasted resources, poor execution of actions and, consequently, the frustration of its managers. Understanding the main causes of failures in a digital transformation strategy is essential:
1. Technology is important, but it is not everything
One of the most common mistakes among companies starting their digital transformation is choosing a process automation platform without previously evaluating the relationship between actions, business model and medium and long-term objectives. Contemplating digital transformation as if it were just another project for the IT department is a catastrophic mistake. It is not a short-term initiative, but a continuous state of adaptation and change. Therefore, it is essential to form a correct strategy and, later, choose the platform that best suits the needs of the company and helps to achieve the objectives.
2. Lack of internal communication
Considering all the employees of an organization is one of the key factors when initiating a digital transformation strategy. For this, it is essential to guarantee correct internal communication throughout the process. Establishing a clear structure on how digitization will take place, engaging employees and motivating them to provide new ideas, or ensuring cross-department collaboration is key. In this way, the percentage of resistance to change will be minimal and the success of the digital transformation will be assured.
3. Unclear objectives
One of the most important factors in a digital strategy is setting objectives, but at the same time, it is one of the most common mistakes. And worst of all, most of the time companies don’t realize until it’s too late. Before starting the digital transformation, it is necessary to think about what you are really trying to achieve and, once this is defined, it is necessary to transmit it to the entire company and acquire the appropriate technology.
In short, digital transformation is a powerful way to achieve greater collaboration, agility, efficiency and productivity in companies. To get the benefits across the organization, you need to have the knowledge to create an effective digitization strategy. If you want to know more about the functionalities of AuraQuantic and why it could be the ideal platform to achieve a successful digital transformation in your company, contact us.