Beginner's Guide to Adopting Digital Transformation
Published: 11/08/2018
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Every online source nudges us to embrace digital transformation as soon as possible. Yet very few provide specific reasons for why it is necessary or how it works in pratice. As a result, we see 70% of digital transformation projects fail. We wrote this piece for every MD, CMO, and CEO who seeks clarity on the topic, including potential caveats they might encounter.
Today’s business landscape is shaped by emerging tools and technologies that continually transform our work methods. For companies of all sizes and across all sectors, digital transformation is not merely an option; it is crucial for success.
But many rush to jump on the bandwagon without sufficient preparation, resulting in crashes and failures. This article will focus on a vital element that often gets neglected: it is not all about technology. Humans are also a part of digital transformation.
Digital transformation involves incorporating digital technologies into business strategies to enhance the efficiency and effectiveness of processes through their redesign. Rather than merely replicating existing procedures with technology, the objective is to reinvent them into improved versions.
While it primarily focuses on the inclusion of innovative solutions, digital transformation also greatly depends on corporate culture and mindset. For it to succeed, the company must balance technology with its team.
Whether you enjoy technology or favor traditional practices, your business will need Software-as-a-Service (SaaS) tools to achieve success. Its comprehensive and varied benefits enable you to create complete tool systems tailored to your unique needs. Now, let’s discuss three key advantages that SaaS offers.
No matter the type of service your company provides or the sector in which it operates, there are certainly tasks that require a significant amount of time to complete. These tasks do not drive progress, yet they cannot be overlooked. For example, if you are working with an outsourced workforce, invoicing may be one of these tasks. Alternatively, if you run an eCommerce store, you might find yourself manually counting the remaining stock at the end of each month.
These tasks can be automated using SaaS tools. Essentially, you will transform processes such as invoicing and stock calculation through digital means, enhancing their efficiency. Consequently, you will improve your team’s productivity.
Delegating manual tasks to software will save significant time that can be redirected towards activities that promote your business's growth. Moreover, automation will handle repetitive manual processes more efficiently and eliminate human error.
Digital transformation unlocks previously inaccessible data. Most SaaS platforms also feature visual dashboards that present metrics and insights in an easy-to-analyse visual format. This new in-depth knowledge will reveal patterns that guide you toward opportunities and identify areas where you struggle.
When you link different solutions together through integrations, allowing them to exchange the data they’ve collected separately, your reach will expand once more. You will place the aforementioned data into various contexts, which would not be achievable otherwise. In other words, the more processes are digitised and interconnected, the more in-depth and actionable your insights will be.
Accessing deeper data insights offers another benefit: it enables you to quickly identify any emerging changes in the market. Additionally, it allows you to respond to these changes promptly, rather than waiting to observe their effects.
Since you will already have data available, you will also be able to make informed and precise decisions quickly. Naturally, this minimises the risk of miscalculation and positions you ahead of the competition by enabling you to address and adapt to changes more swiftly.
As mentioned at the beginning of this article, the success of digital transformation depends on your team as much as on the digital tools you use. In fact, the former is more important and more complex to manage. So, how do you start transforming your team?
The first step that must not be overlooked is ensuring that everyone on your team understands what digital transformation is and why this is the direction your business is taking. Otherwise, you risk encountering opposition when it comes to changing or abandoning processes. This is particularly true for core procedures such as HR or legal. Lack of team alignment can lead to significant delays or complete failure.
Rather than concentrating on securing buy-in from stakeholders, you should emphasise the significance of the benefits of digital transformation to the whole team. Some individuals will require more time to comprehend than others, but progress cannot be made until everyone is aligned.
Digital transformation is intended to be disruptive. While it may sound easy in theory, many businesses encounter obstacles when they fail to embrace it. You should not be attached to the current processes or the entire business model to achieve positive outcomes. The goal isn’t just to optimise them; it is to transform them.
Just as you can’t acquire a new skill without stepping out of your comfort zone, you won’t be able to scale your business if you continue clinging to legacy processes that have proven ineffective. We understand it can be daunting to move away from what you know works in favour of the unknown. However, remember that digital transformation opens up new data revenue opportunities, and the likelihood of failure decreases when you analyse them appropriately.
During digital transformation, particularly when adopting new technologies incrementally, some departments might feel overlooked. For instance, if you begin the transformation by investing in a marketing automation tool, your HR and legal teams may feel excluded from the process.
The easiest way to foster a company-wide digital transformation mindset is to illustrate how each department will gain from it. Understand the key challenges facing different parts of your business and demonstrate how they are being addressed individually. Then, connect the benefits each department receives into a unified vision, highlighting the overall profit for the organisation.
Determining your readiness for digital transformation is something only you can do. Ultimately, you have complete visibility into your business, both from a financial perspective and regarding team culture. Be honest with yourself when assessing: are you prepared to be disruptive? Is everyone in your company aligned?
While the benefits of digital transformation are undeniable, and you may be eager to kickstart the process, you must not rush it. As discussed throughout this article, success depends on the balance between technology and people. If the organization's mindset is not quite there yet, you risk spending a significant amount of money with little to no results. This can seriously discourage you from trying again anytime soon. Therefore, do not rush into digital transformation until you’re 100% ready. It’s always better to be safe than sorry.
Digital transformation is not merely a buzzword or the latest ‘shiny’ object in the business landscape. It represents the way forward. It goes beyond just acquiring the newest technology and employing it; it entails maximizing its full benefits by integrating it with innovation and a progress-oriented mindset.
It’s safe to say that digital transformation is fundamentally a mindset rather than merely a strategy. It focuses on disrupting existing processes and transforming them into something greater, while collecting data along the way for further optimisation.
This is why it’s important to start with people. The technology will be there whenever you are truly ready.
If you are already set up, begin with Timesheet Portal.