Digital Transformation Framework for Reinventing Your Business

Digitization is the latest talk of the town, while its implications are being debated across the businesses, old and new. So what’s all the buzz about? Digital transformation has taken the world by storm, most notably during the pandemics. Business experienced ups and downs, with few being flushed out while others crossed the billion-dollar mark. When new startups aggressively entered markets with digital strategies as the foundation, incumbents were completely out of their depth and struggled to keep up. Take, for instance, newspapers that suffered huge losses with the fall in print subscriptions and classified ads. Eventually, rerouting their revenue model with digital subscriptions to resume earnings. The dynamics of the markets changed dramatically with the digital age, and reinventing the business models to remain competitive was no longer an option. This, right here, is the beginning of a new story on how digital transformation opened new doors for traditional businesses, where companies must be bold enough to push through these doors.

Now that we understand, digital makeover is the only way to stick around, the next step is to figure out how to master it. In an attempt to imbibe this transformation, companies have been trying out different approaches. The most common mix of strategies includes setting up independently functioning units, testing out some digital experiments, or employing new technologies to economize. Even if this may work just fine, it’s impact on the core business is short lived. But such initiatives do not prevent the companies from fizzling out wit their temperate gains. Ergo, in order to have a significant and long-term impact across the business value chain, it is prudent to employ a methodical integration of digital apparatus into the core business composition.

Digital evolution requires roping in many factors, starting with designing the whole digitization journey, stringing in data analytics into the mix, and defining the online platforms on which to rest your digital infrastructure. The whole carnival involves multiple capabilities, from creating data pools, integrating digital systems and artificial intelligence into operations, a cloud based safe house for the infrastructure and a talent pool to run everything smoothly.

Although, it is important to know that for a successful digital transformation, companies need not throw everything out of the window. For ease of understanding, there exists a defined framework that can direct businesses towards existing opportunities within their business makeup and explore newer, more scalable means for future growth. The framework is based on four fundamental elements:

1. Reimagining your business: A digital mindset demands bold but thoughtful steps. It needs the companies to rethink the kind of business they are and how they are able to help customers achieve their objectives through their products. A systematic approach is to look at three defined elements – scope, business model, and ecosystem. With head-on competitions coming along the way, companies need a fresh perspective on the scope of their business to prevail in the market. Although it is essential to hold on to the core essence of the business while expanding its scope. Next up is evaluating the business model by simply understanding what better value or experience the product can offer to the customers and the marketing channel for better customer experience. Even after all this, the business may face roadblocks due to various industrial developments. Therefore, creating an ecosystem of competitors and associated businesses, results in cumulative growth.
2. Re-evaluating your value chain: Digital intervention is a preliminary requirement to changing the way things are done in the company. Automation or digital integration of certain value chain segments, such as supply chain and research, or the introduction of certain capabilities, such as analytics, into mainstream processes, can save a great deal of time and money. It is not only about the existing operations but also about discovering new touchpoints in the value chain that directly influence the customer. So, restructuring the operations and decisions around the value proposition is the key to a successful digital mechanism. For instance, travel companies directly interact with customers through online portals, completely surpassing the role of intermediate vendors and agents.
3. Reconnecting with customers: The upsurge of technology has changed the way people do shopping. No more going from store to store looking for a single item of clothing. With the information available online, people are more conscious of the purchases they make. At the same time, this technological dependency has led to the collection of important consumer information that affects their buying decisions allowing companies to come up with new ways to connect with their customers and subtly direct them towards the offering.
4. Rebuilding your organization: Digital metamorphosis, although imperative, is also complex to carry out and sustain. The ultimate goal is not only to sail through the current circumstances but also be future ready. The process may disrupt the entire architecture of the organization and the patience of the strongest leadership. Hence, it demands a fine-tuned alignment between the goals, operations and new initiatives that initiate a chain of actions automatically falling in line. Data analytics, artificial intelligence, and Internet of Things , for instance, are some digital tools that provide valuable insights into understanding customers. This in turn needs a capable and skilled talent pool to run the whole mechanism. So companies are using technology for a more data-driven hiring process.

Thus, digital transformation demands businesses to adopt, learn, and reinvent themselves to not only to remain in the game but to flourish and future proof themselves