Digital transformation strategy is a plan of action describing the way a business must strategically reposition itself in the digital economy. When Covid-19 struck, it forced digital transformation changes for all business around the globe. Indeed, we’ve seen the COVID crisis rapidly re-shape both the “what” and the “how” of business’ digital transformation agendas. In this post, we will show you the significant changes which COVID-19 affected digital transformation initiatives.
Even before the COVID -19 pandemic, most if not all business were invested in leveraging the power of digitalization to automate their processes, boost their revenue, and outperform competitors. However, the pandemic has enormously accelerated the demand to implement digital transformation strategy that quickly create impact – by boosting production speed and flexibility, improving supply chain resilience, and generating more transparency around complex processes and global business models.
What is the digital transformation ?
Since the digital transformation will look different for each firms, it can be hard to have a definition that applies to all. In general, the digital transformation is integrating the digital technology into all areas of a business to help businesses operate more effectively and provide value to their customers.
Moreover, it’s a cultural change that require companies to continually challenge the status quo, experiment often, and get comfortable with failure. Although digital transformation strategy will vary widely depended on organization’s specific challenges and requirements, there are a few digital transformation elements among existing case studies that all business and technology leaders should consider when they start implementing digital transformation. For example, these digital transformation elements are often included:
- Customer experience
- Operational agility
- Culture and leadership
- Workforce enablement
- Digital technology integration
How has the COVID-19 pandemic changed the digital transformation strategy?
COVID-19 is still here, and it’s continuing to impact businesses’ digital transformation plan.
Automation is not optional
The COVID-19 pandemic has forced organizations to motivate digital transformation efforts. Also, many companies realized that operations did not have to operate perfectly before implementing the digital transformation plan. They need a solution that functioned adequately supported businesses to keep running. Prior to the pandemic, over half of companies thought that a lack of prioritization was a leading reason for implementing digital transformations. Covid-19 forced business to make these transformation a top priority, they were able to perform so at lightning speed.
Increased use of customer-friendly apps
With more of the clients confined to their homes due to pandemic quarantine requirements, business leaders need a solution to deliver their customers the best possible shopping experience. That is a reason for business to deploy the customer-friendly systems and applications. Moreover, minimizing the likelihood that existing and prospective customers would switch to another website, generating a one-stop shopping experience became a major goal for most companies
Increased use of self-service apps speeds client data collection
One of the important advantages of digital transformation is the integrating of applications that enhance access to self-service resources. This is essential for offering top-notch customer experience. Moreover, with self-service, clients can perform more activities on the online store, such as shopping, comparing prices, and completing transactions. On top of that, companies can easily access to the valuable data customer. That data can later be analyzed to identify purchasing preferences and other metrics. As a results, it be further transformed into advertising and promotional messages that create additional customer activity.
Investment in cybersecurity
The critical nature of cybersecurity has become an important part of the digital transformation. Therefore, keeping that information secure has become a top priority. With businesses across industries relying on technology and software to help them offer key services for their shoppers. The average cybersecurity breach takes an average of 290 days to identify and contain, which leaves criminals plenty of time to wreak havoc on company computer systems. It also costs companies an average of $3.89 million.
During the pandemic, the priorities for cybersecurity within business have also shifted. They have transitioned away from offering support during routine tasks and support internal networks towards empowering the remote workforce. By using capabilities such as virtual private networks (VPN) and working to educate and protect staffs from scams and attacks that threaten remote workers, those in charge of cybersecurity have quickly pivoted in their work and emphasis. With the increase in remote work, many business have recognized the importance of enhancing their cybersecurity spend. the importance of cybersecurity has become a priority for business across industries.
Increased use of advanced e-commerce platforms
With more users accessing ecommerce websites due to the pandemic, increased demand for products dramatically impacted supply chains. Business realized that, by owning advanced e-commerce platforms, they could use data from the apps to analyze and modify supply chains as needed to accommodate shifts in demand.
Collaboration between HR and IT to enhance employee experience
With many employees now working remotely, HR encountered many troubles, including how people will interact without physical, in-person contact; potential increases in stress and discomfort working remotely; and the requirements for increased e-learning to make sure employees are still connected to the business and its culture. HR coordination with IT became crucial for ensuring that staffs had the most positive work experience possible.
Use of AI in data analysis confers competitive benefits
AI and machine learning play an increasingly crucial role in digital transformation success. Moreover, the deployment of AI technology, for instance, can greatly improve the ability to analyze data from advanced e-commerce websites and deliver a better customer experience. This, in turn, can translate into an enhanced competitive benefits for the company.
Digital transformation strategy trend after the pandemic
Digital transformation depended on the effective combination of two development vectors: business and technology. Therefore, you need to ensure that your business’s organizational processes don’t block the progress of the technology transformation.
Business digitalization trends
- CEO leads the way: digital transformation strategy should always work from top to bottom. CEO should deliver a clear vision of the firm’s development and knows how to share these objectives with the staff.
- Digital education and implementation of technology solutions in daily processes. Therefore, you need to integrate tech to communication, task management, customer support;
- GDPR-compliance: ensure to familiarize yourself with the privacy regulations before coming up with tech solution;
- Scalability: All digital practices should include growth potential. Considering a change, always ask yourself – what’s the next move?
Digital transformation strategies should be applied at the very beginning before you even start investing in tech progress. However, it doesn’t mean you shouldn’t use professional support. This is where you can turn to an experienced IT consultant.
Tech digitalization trends
The Digital transformation strategy starts not with applying buzz technology that would already be one of the final stages. Instead, business should focus on making smaller improvements that are of no less importance.
- Tech debt reduction means fixing bugs, removing redundant code, making it readable. Furthermore, ensure that the foundation is solid before starting something new. Also, investing in performance testing and refactoring before you start building new features.
- Moving to Cloud: digital transformation comes with large volumes of data and storing all this on hard drives is expensive and unreliable. Therefore, before moving on to innovation, it is crucial to shift to Cloud computing;
- Setting up analytics: allows the business to get any of the transformation metrics to operate, you need to ensure that you established KPIs and generated data channels to check your progress digital trends for 2021
- More importantly, for enterprise, the responsibility of implementing innovation should be distributed between the team leader and digitalization experts.
- Also, keeping everyone involved in the process will help the business to speed up innovation and cut down the end cost.
Looking to begin your digital transformation journey? Get in touch our Business & Technology Consulting Services to discover how you can get your transformation initiatives off the ground. With the in depth knowledge and expertise, Arrowhitech will help you shortcut your way into the world of IT and leverage your IT in your business environment effectively.