Get to Know Digital Transformation

Get to Know Digital Transformation

In today’s world, nearly everything is moving digital. Technology changes by the second and there are always new updates and solutions being created to solve problems. The business world is not exempt from these innovations. At this point, it is almost essential to incorporate digital technology into business plans to achieve success.

This brings about the topic of Digital Transformation. The term does not imply turning every aspect of business digital but utilizing modern day technologies to bring together all parts of a business. Digital Transformation is a true cultural shift in the way that business is conducted. By using technology to bring together people, business processes, and crucial data, businesses remain competitive while providing customer’s the best possible experience (1). Interconnectivity of all business processes, departments, and employees sets business on the path of success, and this is achieved by implementing a digital transformation strategy.

Many businesses may be interested in implementing digital transformation but are unsure how to start or what technologies can help them achieve greater connectivity and efficiency.  Understanding what solutions and platforms help drive digital transformation is a great start to see what drivers can be integrated in a business strategy. Some digital transformation drivers include: Artificial intelligence (AI), cloud technology, mobile technologies, and social media platforms (2). All four of these digital transformation drivers play large parts in moving business operations forward utilizing technology.

Moving forward with digital transformation is a process that should be mapped out as its own strategy. Deciding what technologies to adopt and the phases of implementation may seem like a lengthy process of research and planning, but it all begins with analyzing the business as a whole. SAP Insights designed a road map for businesses looking to move forward with a digital transformation strategy and using the suggested steps will help make the process move smoothly. Below is SAP’s seven step process for creating a unique digital transformation strategy (1).

1. Assess Current Digital Transformation Initiatives – Taking the time to take a close look at the entirety of the current state of the business is the best first step to see where the gaps are. Analyzing strengths and weaknesses will help determine what digital transformation drivers will work for the specific needs.

2. Establish KPI’s for the Digital Transformation Journey – Key Performance Indicators (KPI’s) are great to set realistic and detailed milestones to achieve from planning a new business strategy. Being realistic with KPI’s and making them as detailed as possible helps all departments understand what the specific goals are and what role they play in successfully completing the strategy.

3. Identify the Top Priorities – There may be many business goals one wishes to achieve from implementing a digital transformation strategy, however, there may be some that are of greater importance than others. Spending the most time planning how to achieve the top priorities from the beginning will benefit the business in the long run and leave time afterwards to focus on the goals that are of less importance. Attempting to tackle all of the goals at once without phasing them in will only result in an overwhelming and unachievable plan.

4. Prioritize Change Management – Many may think the biggest challenge when introducing new technologies into a business strategy is the technologies themselves, however, it is in fact poor communication, silos, and short-sighted planning. Implementing digital transformation drivers requires open and clear communication through every department of a business to ensure success.

5. Utilize Data-Driven Insights – When implementing digital technologies, making sure a business’s data is clean, accurate, and organized will make the entire process less stressful. Accurate data is critical for every business and is especially important when moving data to digital technology such as an ERP solution. Cleansed data also makes it much easier to create reports and charts to review past performance. Understanding how data is currently being managed and deciding what needs to be changed for greater accuracy is an integral step in the process.

6. Look at Customer Feedback – Understanding customer satisfaction is key because ultimately, customer input should be a core component in designing a new strategy. Implementing digital solutions will not only improve internal business operations, but in turn, will provide customers with a more personalized and positive experience. Timeliness and efficiency help improve customer satisfaction, and there are incredible digital options to streamline processes such as production and distribution.

7. Establish the Business Specific Road-Map – Now that the backbone of the project has been assessed and completed, the framework can be filled in. There are amazing technologies that are ready to solve any business specific problem, so working with a technology provider can help determine and narrow down the options that fit the best.

In conclusion, the resources available to help with the planning and strategy process will help make adopting digital technologies feel less overwhelming. A great technological solution to begin the digital transformation process is an ERP. Enterprise Resource Planning Solutions are comprehensive fully-integrated business management software that truly connects every aspect of a business. SAP Business One is the leading ERP for the small to midsize business market and is packed full of features and functionalities to customize the solution to fit specific needs.

Softengine is a SAP Gold Partner specializing in SAP Business One implementations. Contact us today to help kickstart the digital transformation strategy and gain competitive advantage in the technological business world.

More information about SAP Business One: https://softengine.com/product/sap-business-one/

Resources

(1). https://insights.sap.com/digital-transformation-strategy-road-map/

(2). https://www.techtarget.com/searchcio/definition/digital-transformation