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Digital transformation is no longer a fashionable term — today it is a matter of business survival. Companies that do not restructure processes, introduce new technologies and do not change their approach to work are losing market positions. But implementing IT solutions is not enough. We need a systematic digital transformation strategy.
In this article, we'll figure out what a digital transformation strategy is, why businesses need it, and how to develop it so as not to waste money.
What is a digital transformation strategy
Digital transformation is not just about implementing IT solutions. This is a review of the company's business model, processes and culture, based on technology.
No matter how the market changes, the winner is the one who knows how to work with data, automate routine and scale value for the client. It all starts with a well-designed, business-oriented strategy.
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Why strategy is more important than automation
Companies often start with automation: they implement CRM, BI systems, and mobile applications. But without a strategy, these decisions remain fragmented, do not provide synergy and do not change culture.
Strategy development allows you to:
- build a competent solution architecture;
- synchronize IT and business goals;
- avoid budget spraying;
- accelerate the achievement of results;
- make the company resistant to crises and changes in the market.
What will it do?
First, you will save your budget: instead of chaotic spending on “targeted” IT solutions, there is a clear plan where every ruble works to increase profits.
Secondly, increase revenue: synergy between systems = fewer customer losses and more deals.
Thirdly, reduce stress: predictable processes instead of constantly “extinguishing fires”.
When a business needs a digital transformation strategy
Strategy development is particularly relevant if:
- the company's processes are not scalable;
- costs are rising, but revenue is not growing;
- it is impossible to track the effectiveness of decisions;
- customers are moving to more technologically advanced competitors;
- data is stored in different systems, and management decisions are made “by eye”.
The lack of a systematic digital transformation strategy leads to the fact that IT is becoming a costly rather than a strategic asset.
How to develop a digital transformation strategy: 5 steps
Here are five steps to get you started:
1. Digital maturity assessment
Understanding where you are is the first step to strategy. Diagnostics covers:
- the maturity of the processes;
- digital infrastructure;
- team skills;
- willingness to change;
digital culture within the company.
This makes it possible to record the starting point and build a realistic roadmap, where the path has been developed step by step.
2. Formulation of transformation goals
A digital strategy should work for businesses. For example:
- reduce operating costs by 20%;
- double the company's turnover;
- achieve a 50% increase in net profit:
- accelerate the introduction of new products to the market;
- improve the accuracy of demand forecasts;
- improve customer experience.
It is important not to replace the goal with technology. The goal is a business result, not “the abstract introduction of analytics, artificial intelligence, bots and other digital technologies”.
3. Selecting priority areas
After assessing and setting goals, it is necessary to identify key areas for transformation. This could be:
- automation of key processes;
- digitalization of the customer journey;
- introduction of analytics and predictive models;
- transition to cloud architectures.
- integration into the AI customer support system.
You don't have to change everything at once — just start with zones that give the maximum effect at minimal cost.
The ICE method can be used to prioritize business tasks. ICE is the abbreviation for Impact, Confidence, Ease. Each direction is assessed by the magnitude of the expected effect (Impact translated from English. Influence), the level of confidence in getting results from implementation (Confidence from English. Confidence) and expected ease of implementation (Ease). Each direction is graded from 1 to 10; the final ICE coefficient is the product of the scores obtained. Based on the results of this analysis, the most priority areas are formed.
4. Solution architecture design
At this stage, the IT architecture of the future is being formed: what systems are needed, how they interact, and what data they process.
It is important to consider:
- scalability of solutions;
- integration with current IT systems;
- safety and compliance.
Without a unified architecture, it's easy to get a “zoo” of unrelated solutions and problems for years to come.
5. Preparation and launch of pilot projects
It is not necessary to launch a transformation in all departments at once. It is more correct to test solutions in a small business area, test hypotheses and scale up what works.
Pilot projects help:
- reduce risks;
- get quick results;
- reduce costs;
- involve the team;
- demonstrate business benefits.
Controlled and measurable test launches and pilots are an extremely important tool in implementing a digital transformation strategy.
What should I do right now?
Take a checklist for a quick self-diagnosis:
- Does the company have clearly outdated approaches?
- Are competitors overtaking in speed?
- Data in disparate Excel?
If at least one point is your case, you need a strategy.
Take 15 minutes and write down the one business metric that suffers the most without digitalization (for example,% of customers lost due to slow order processing). This is the starting point.
Why transformation without a team is doomed
Even the best strategy doesn't work if the team doesn't support it. Therefore, people are at the center of digital transformation. Digital technologies are just a tool in people's hands. It is necessary to:
- rebooting culture: from control to responsibility;
- developing digital competencies among employees;
- leadership by top managers and support for change.
Mistakes when developing a strategy and how to avoid them
Mistake 1: only bet on technology
Decisions without changes in processes and people do not produce results. The main thing is to change the approach to management and thinking.
Mistake 2: Start by automating private tasks
Without a single picture, transformation breaks up into disparate initiatives. A strategy is needed to connect these points into one trajectory.
Mistake 3: Copying someone else's experience
The digital strategy should take into account the specifics of the industry, business model and corporate culture. There are no universal solutions.
When to hire an external partner
The development of a digital transformation strategy is a zone where external experts can provide an objective assessment, methodology and experience. Especially if the company has:
- there is insufficient expertise in digital solutions;
- the strategy is needed quickly and without trial and error;
it is important to avoid internal conflicts during transformation.
The partner helps build a strategy, launch pilots and train the team. But the business owner or top manager still remains responsible for implementation.
Digital transformation is an investment in the future!
The introduction of digital technologies into business is not just the installation of new software, but a deep transformation of processes, thinking and corporate culture.
That is why competent digital transformation specialists are becoming key figures on the way to the effective modernization of companies. They not only understand IT tools, but also understand how to adapt them to the goals of a particular business, avoiding one-size-fits-all solutions.
Such experts are able to build communications between technical and management teams, minimize implementation risks and achieve real results: increasing productivity, reducing costs and increasing customer satisfaction.
The digital transformation strategy is a business tool. It allows you not only to survive in a changing world, but to adapt faster than competitors and use technology as a competitive advantage.
No matter how the market changes, the winners are those who know how to work with data, automate routine and scale value for customers. And it all starts with the right strategy!
Your next step is not to “think” but to act
Conduct an express audit. Discuss with Team 1 the key process that “inhibits” profits and requires automation.
As a result, contact digital transformation specialists with a key request right now.
Digital transformation doesn't start with a budget, but with your decision to test where technology can save you money this quarter.
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