"Social media is but one component of a complete strategy"
Ask people from five different enterprise departments about their digital strategy, and you're likely to get five different answers. Chances are social media would be mentioned, as well as mobile, advanced analytics, and cloud. But few could describe how their company is connecting these initiatives to enable digital transformation - something that needs to happen for businesses to succeed in an undeniably digital future.
A recent IDG survey of 166 business and technology executives suggests that, while most companies are focused on certain aspects of digital transformation, their strategy is disconnected. Few are taking a "business first" approach to capture digital's full potential. For example, 78% of respondents in business roles said that generating new revenue was a key driver for digital transformation; yet only 20% named sales as an early focus area for their digital efforts. Clearly, there are disconnects between what companies deem as important and what they're actually working on.
So what's the holdup? 89% of respondents said that both "changing the company culture and mindset" and "getting business alignment and agreement on strategy" were challenging obstacles for digital transformation.
Getting on the same page
Creating a consensus of what digital transformation means, and how the business can optimize IT, should be a key priority for every digital strategy.
Of course, social media is an important part of the equation - it's a catalyst for productive conversations with customers and employees, and can also provide insight into business-building decisions. But social is only one part of digital. Progressive companies are thinking on wider scale that includes using cloud-based software applications to reduce costs, capturing and analyzing big data to reveal insights, and enabling mobile technology to open new revenue streams.
In many cases, enterprises are reshaping the very structure of their organizations to take full advantage of digital capabilities, linking all of these components to create value across their company.
Digital role models
While many organizations are working toward digital transformation, some have realized breakthroughs created by a well-executed strategy.
For example, Dell Digital Business Services worked with Staples, to get more from their social media program, deploying a cloud-based social media listening solution that filters out "noise," identifies valuable input, and influences business decisions in near real-time.
The University of Kentucky takes advantage of data analytics to help its students excel in school and graduate on time. By automatically scrutinizing vast amounts of student information, they're able to identify at-risk students in seconds and offer personalized guidance for coursework and degree plans.
Meander Medisch Centrum, a Netherlands-based healthcare provider, uses a custom-built mobile application for tablets, which gives its practitioners easy access to information on the move, and ultimately improves the quality of patient care.
These examples prove how digital transformation delivers business outcomes in various ways. And, when brought into synch, digital strategies can translate to maintaining a competitive edge.
Five steps toward transformation
For true digital transformation to succeed, it can't be an afterthought or a "nice to have" approach. It must be seen as a business imperative. To move past siloed digital projects and embark on an enterprise-level transformation, here are five key steps:
- Get strong commitment from the c-suite. Without early buy-in and visible support from the leadership, meaningful change is all but impossible.
- Appoint a chief digital officer or look to incorporate digital as part of the CIO's role. A uniting influence between IT, operations and business support functions can ensure a straightforward execution of strategy.
- Shift the core focus of transformation initiatives to driving business growth. Challenge leaders to move toward engaging all aspects of the business with an eye toward tangible ROI.
- Manage change carefully. Help employees understand what's changing and why, and provide the tools and training they need to make those changes effectively.
- Partner with a proven expert. Going it alone is tough when your staff is stretched thin and too close to the problem. An objective digital transformation specialist can help the business recognize its potential, map out a cohesive plan of attack based on best practices, and bring the right skills to the table to help you execute.
The sooner companies embrace digital transformation for what it is - a sweeping, monumental opportunity with implications for every aspect of the business - the sooner they can seize its enormous potential for growth and long-term profitability.
Link to full IDG Report here. Main image via Shutterstock.