While most companies know the importance of digital transformation (DT), many are slow to take on and/or complete projects that will take them to this new frontier.
In a recent report, SAP found that:
- 55% of businesses are piloting DT programs
- 22% are in the planning stage
- 19% have completed projects, but only in some areas of the business
- Only 3% have completed digital transformation projects across the organization
- 1% haven’t even begun planning
Image via SAP
So how do you ensure your business becomes a part of that 3% that actually completes DT projects across the entire organization?
Let’s take a look at what SAP found makes what they call a “digital transformation leader”.
Ensuring Digital Transformation Success
In order to ensure your DT project is successful, you need to prioritize the following four factors.
1. Focusing on the customer.
Meeting the customer where they are, when they’re ready to buy is one of the main reasons why the shift to a digital strategy is so necessary in today’s buying environment.
Those with successful DT strategies know this. In fact, 92% of them have these processes and strategies in place in order to improve the customer experience, as opposed to only 22% of others.
What’s more, 70% have seen “significant transformational value” in customer engagement and satisfaction, versus just 22% of others. These leaders are also more likely to cite customer empowerment as a key global trend.
2. Adopting a digital mindset.
In order for a DT strategy to truly work, the entire organization—from the C-Suite down to sales reps—has to buy in. After all, it’s called a transformation for a reason. And one of the foundational elements of a true transformation is the adoption of a digital mindset.
This means businesses must rethink business models to avoid piecemeal change, utilizing purpose-built project teams to implement the strategy company-wide. That’s why, at 56%, more leaders have seen their organizational structure change as a result of DT.
That’s probably because 96% of these leaders consider DT a core business goal, whereas only 61% of non-leaders have the same view.
3. Investing in the right technology.
DT leaders are more likely to invest in “next-gen” technologies, like Big Data and analytics (94%), the Internet of Things (76%), and machine learning (50%).
According to SAP:
They do so using a bimodal architecture so that they can make their core infrastructure more effective and cost efficient while quickly incorporating innovations and new technologies to get ahead of the competition.
4. Recruiting forward-thinking talent.
These forward-thinking strategies also attract forward-thinking candidates. In fact, 71% of leaders said that their DT efforts made it easier to attract and retain top talent. Moreover, digitalization itself changed their overall talent management efforts.
Last but not least, leaders are more likely to believe that investing in digital technology and skills is most important for driving revenue in the next two years.
Now that you know what makes a DT initiative successful, what perks are these leaders experiencing?
SAP found that “leaders who are fully committed to DT across their enterprises are three times more likely to report high levels of value creation from [it].” They also reported that:
- 85% say transformation efforts have increased market share
- 80% report it’s increased profitability
- 70% say they’re already seeing increased customer satisfaction
- 64% of employees feel more engaged
- 23% higher revenue growth is expected in the next two years
What’s more, these leaders are already seeing a positive impact on education and training.
With all these benefits, why wouldn’t you make digital transformation a priority?
Ready to start your DT journey? FPX can help. Contact us today to learn what we can do for your business.