The organisations that will truly benefit from the digital opportunities that are already present today are those that are able to define, from the first level, digital transformation and optimisation plans for all areas of their work.
In previous sections we have discussed the general aspects that need to be considered and reshaped in a company in order to achieve disruptive change. But, once these aspects are known, the questions that automatically arise are: where do I start, what phases should I follow in my business so that the process is scalable and effective?
A generalised model for achieving digital transformation is as follows, which consists of six phases:
Awareness-raising and training in digital skills.
In the first phase, the main objective is to understand the benefits that digital transformation will bring to the company. A service that is not adapted to the digital world will be difficult to use and will create barriers for users. Therefore, the goal should be to create solutions to integrate technology and make it available to people, facilitating processes and improving their experience.
Firstly, the company must understand how technology, the Internet and social networks are revolutionising the business world, relations with current and potential customers, the role played by these, the new leadership model, the "social asset" as an added value or the empowerment of employees.
Subsequently, the company must analyse in detail the benefits of digital transformation, reflect on the need for its implementation in each of the areas of the business and on the limitations that not doing so would entail.
Of course, technologies must be fully integrated in all areas, and used knowledgeably and effectively by employees. An employee who does not have a thorough knowledge of the tool he or she is going to work with will work inefficiently and in an environment in which he or she does not feel comfortable and competent.
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For this reason, all teams need to be involved in collaborating to integrate the technology and make it available to customers.
Employee empowerment is necessary to adapt to customer needs. For example, employees should be aware of the professional use of LinkedIn, Twitter or those social networks most closely linked to their business.
Research opportunities
Once the context has been analysed, and the benefits the transformation will bring and why it is necessary to implement it are clear, it is time to adapt it to the needs of the business. No digital disruption strategy is exactly the same for every business; it will depend on changing internal and external factors. Thus, it is necessary to analyse the main variables that will influence the process and against which a viable model will have to be created. The business model currently in place, the skills and competencies available, the organisational culture that defines the company's team, etc. must be taken into account.
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There is no single way to make the digital transformation of the business. Therefore, before considering which approach is the most appropriate to carry out the change, the main variables of the company, such as its culture, its skills, and its business model, must be analysed.
Remember that beyond the need to transform digitally, there are certain factors that you must take into account when choosing how to digitise. The important thing is not to fall into opposites, i.e. avoid closing yourself to change because you see it as something threatening, without even giving it a chance, or, on the contrary, accepting the first thing you see without analysing how this technology can help you.
It is necessary to evaluate the pros and cons by asking questions such as: What are the benefits of this new tool? Are there any cons? How could it improve or transform my process?
Finding the answers to questions like these will allow you to draw a roadmap that will enable you to start that transformation.
The most important thing will be to know how to choose the way forward for the company, and also to identify the "agents of change" in your organisation, who will be in charge of carrying out this evolution towards the new digitalised business model.
Definition of the digital strategy
When the approach adapted to the needs of the company reaches a certain maturity, it is time to define the Digital Strategy, or in other words, to move on to the implementation of digital technologies according to the proposed model.
Digital strategy is the application of technology and digital media to create value, i.e. it defines digitally what we do and how we do it. A successful digital strategy requires different domains, as it will mix technology with marketing and operations. This phase, which is probably the most complex for a team, requires involvement from all areas of the organisation.
The aim is to bring about a change in habits and mentality, so this transformation has to be designed according to the resources and conditions available to the company. It is important that it is seen as a process, not a one-off event, as technologies improve and change, and the company must be prepared to take advantage of the benefits of this continuous advance. Updating digital tools will provide better adaptability to the changing context. We live in constant change and it is essential that we adapt quickly to what is happening in the environment. Innovation will be key for the organisation to be competitive.
It is also important to distinguish between a digital strategy and a marketing strategy. In fact, a digital strategy will usually contain a marketing strategy.
The digital marketing strategy will generally be outward-facing, focused on adding value to our customers, giving us visibility, increasing our reputation, brand value, etc.
Instead, digital strategy applies to the organisation as a whole, both internally and externally. So our digital strategy will look at how we apply technology to our entire value chain.
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Creating a digital strategy is not complicated, but it does require talent and knowledge, as well as some experience. It requires:
- Multidisciplinary skills: marketing, operations, sales and technology profiles.
- Pre-defined business objectives.
- Support from the executive level of the organisation.
Once we have what we need, we only need to find a way to reach the proposed objectives using technology and digital media. To do this we must have multidisciplinary profiles and create actions that will lead us to the proposed objectives.
For each line of action, or part of the plan, we must have defined metrics that inform us of our progress. The environment is very dynamic and many of the actions in our plan will need to be adjusted, so having metrics that are easy to consult is key. We must test, measure and modify in order to optimise and obtain the best performance from our strategy.
The biggest difficulty is often having the necessary talent in the company to implement a good strategy. One possibility is to rely on consultancy firms that can provide the company with the talent it needs.
Business and HR transformation
In addition to defining a digital strategy that adapts the change to the company, it is necessary to assess the business variables internally and revalue the employee as a determining factor in the digital transformation.
It is clear that for a strategic plan to be implemented, managers must agree and dare to accept any changes that arise as a result of the process.
It is necessary for the team to lose its fear of uncertainty and not only to train in the digital skills described in previous phases, but also to adopt an entrepreneurial attitude, open to learning and innovation. In this area, the management carried out by the company's Human Resources department plays a fundamental role, as it must assess the team's skills, encourage them to take on new projects, foster communication between company and employee, resolve any incidents that may arise in the transformation process, and even promote open leadership. In short, making employees feel that they have real support in their work and facilitating their collaboration in new challenges. In addition, it is important to select talent when considering new team members.
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We have no choice but to prepare the organisation so that employees and managers can lose their fear of insecurity, sharpen their wits, reinvent what they have learnt, and train not only in digital skills, but also in a more entrepreneurial attitude, open to learning, research, innovation and analysis. Objectives should be defined such as:
- Implementing corporate social networks.
- Training in collaborative work and project management.
- Enhancing open leadership.
- Develop a culture of customer experience.
- Define new employer branding and recruitment and selection 2.0 strategies.
- To promote a customer-focused organisation.
Implementation and execution of key projects
Once the strategy has been defined and the organisation has been empowered, the key projects for the transformation of the organisation towards a new digital, global and customer-oriented environment need to be defined at a practical level. These, as in all phases, will vary according to the objectives of the company:
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- Creation of a database of clients and potential clients.
- Implementation of Customer Relationship Management processes, or CRM, which allows the management of all relationships between a company and its existing or potential customers, facilitating and streamlining the contact process. The so-called "CRM system" is a digital tool used to improve all interactions within the company, from marketing strategies to sales analysis or customer service.
- Implementation of a new customer service strategy and creative processes to facilitate customer experience management.
- Review or creation of a website, a blog, or digital channels that raise awareness of the company and encourage interaction with the customer.
- Definition of a content strategy.
- Identification of digital businesses that inspire effective ideas to be implemented in the transformation process.
- Identification of products or services to digitise. It is necessary to be clear about which services or products we can digitise within our offer, and to analyse whether it is profitable.
- Identification of processes to be digitised. It is also necessary to discern the specific processes within the company where digitisation will be beneficial.
- Implementation of a social media and digital reputation plan. In the new business model based on digital technology, the public perception of the company on the Internet is a key point. This reputation is built by adding user interactions (ratings, opinions and comments) and content such as news or articles that may refer to our business, published on social networks, specialised websites or blogs. Our company must build an attractive image on it.
- Implementation of a digital marketing plan and Inbound marketing. Inbound marketing combines non-intrusive marketing and advertising techniques with the aim of contacting the user from the beginning of the purchase process to the final transaction. This facilitates customer loyalty.
- Implementation of a multi-channel management plan. One potential option is to create a plan in which our communication with the customer makes use of different digital channels: web, chat, social networks, mobile applications, etc. Although this process is more complex to implement and requires a greater investment, especially in terms of time, it allows us to establish contacts and long-term relationships with the company's users or potential customers and is the most effective option to encourage the expansion of the business. This digital management can be accompanied by offline events that contribute to greater proximity with potential consumers.
- Identification of KPIs and creation of the necessary dashboards. The term KPI (Key Performance Indicator) is a measure of the performance level of a process. The value of the indicator is directly related to a previously set objective and is normally expressed in percentage values. Thus, in a business, it will serve to assess and quantify the effectiveness and productivity of the actions carried out. The objective of a KPI is to facilitate decision-making regarding a project, strategy or process within a company based on the variables measured, and to establish a route for future action that in numerical terms is advantageous.
Digital analysis, review and optimisation
Deploying means developing a process of continuous improvement: plan, do, measure and act. Once our business model has been executed and the parameters that we have considered appropriate according to the needs and the environment have been implemented, it is necessary to know whether or not this model meets the predictions and objectives proposed. In this sense, the quality indicators (KPIs) established in the previous phase reappear. These KPIs, which make it possible to quantify variables in a simple, objective, reliable and automated way, offer results that must be analysed and assessed through the preparation of reports, in order to provide an overall view of the situation in the new business plan.
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This is the only way we can, on the one hand, find out where the transformation has been successful. If this is the case, it will serve as an incentive for the implementation of new objectives. On the other hand, it will allow us to know the aspects to improve, those in which the established plan has not given the expected results, and where we will have to direct our efforts to optimise the process. We must not forget that learning is consolidated in the process of recognising, admitting and correcting mistakes.