digit transformation is a broad term that can have many specific meanings for different companies. For example, if you’re a digital marketing agency, you might see transformation as the need to overhaul your technology and processes to work with the latest and greatest digital tools. But this transformation should not be undertaken blindly.
Define Your Problem
Before you can identify your business goals and requirements, you’ll first have to identify the specific problems your organization is trying to solve.
This is easier said than done, but it’s something you’ll need to practice to get better at over time.
Identify Your stakeholders
What are they interested in? What do their pain points or desires feel like? You’ll probably want to start with your highest-level stakeholders and work your way down. You may have to dig into your bottom-line customers or products to find the ones that need the most help. You can then work to create solutions to these problems, or pain points, that your company can help with.
Set Goals
These goals will give you something to work towards, and they also let you know where your company is headed.
Once you’ve set goals, it’s time to break the big news: You’re moving in a new direction. You may have heard this term before, but it’s worth repeating: Digital transformation is a process, not a destination. It’s the journey, not the destination.
Create an action plan
Once you’ve set goals, identified who you want to help, and defined your problems, it’s time to break down all of the details of your transformation action plan. This will allow you to more effectively identify and solve problems, as well as set a more detailed course for your transformation.
Once you’ve broken down your transformation action plan, the next step is to map out your journey. This is the process of achieving your goals, and it will depend on where you are in your digital transformation journey.
Define your technology requirements
Now that you’ve mapped out your transformation journey, it’s time to identify the specific technology requirements that will define your company. For example, if you sell products that require a certain level of customization, you’ll want to be able to track the progress of your customizations and deliver the modifications as needed.
Typically, this is the responsibility of the technology side of your transformation, but it can also be the responsibility of the business unit if the technology requirement is within their purview.
Identify your suppliers
Now that you’ve broken down your technology and business requirements, it’s time to identify your suppliers. The suppliers will play an important role in the success of your transformation, and it’s good practice to work with a few key vendors to build out your initial contracting strategy.
You’ll likely choose your vendors based on price and product fit, but it’s also a good idea to get to know your competition. You can learn a lot by looking through the eyes of your competitors, and by working alongside other businesses you can build a stronger connection.
Beyond choosing your initial vendors, you’ll want to look for suppliers that are similar to yourself. This helps you to get context on what problems your company is solving, as well as who your key competitors are.
Determine your transformation roadmap
Now that you’ve selected your initial suppliers, it’s time to determine your transformation roadmap. This will help you to map out your journey and decide which companies and technologies will be key elements of your transformation.
For example, let’s say you select three companies to work with for your initial supply chain implementation.
Communicate your transformation story to your team
Now that you’ve selected your initial suppliers, determined your transformation roadmap, and defined your technology requirements, you’ll want to start to tell your team about the transformation journey. This is the process of moving to a new system, and you’ll likely start by telling your managers and executives.
End with a happy note
Finally, end the meeting by giving your team an optimistic note.
You can also share your timeline for the transformation, and how you’ve drawn up your action plan.
Why is digital transformation necessary?
If you’ve been in business for a while, you’ve probably run into the problem of lagging behind your competitors in the areas of technology and processes. The answer is that business transformation is necessary in order for companies to stay competitive in the future.
For example, if your industry is tech-based, your competitors may already be using the latest and greatest technologies.
7 stages of digital transformation
Now that you understand why digital transformation is important for your business and what it entails, let’s take a look at the different stages of transformation.
How to effectively and efficiently complete digital transformation
At the heart of any transformation plan is an effective and efficient use of your time.
In addition, you should also ensure that your team is working towards a shared vision that guides the entire effort. This helps the team stay focused on their task and avoid diverging into tangents and bickering.
Key takeaway
There are seven different stages that a digital transformation can go through, and each stage has unique challenges and opportunities.