Digital transformation is a term coined in 2013 by the McKinsey Global Institute (MGI) and has often been described as “disruptive” or “revolutionary.”
This article will review three ways digital transformation is affecting organizations and what you can do about it.
Data & Analytics:
While data driven decision making was once an obscure method for many business functions, such as marketing and sales, data driven decision making has quickly become an expectation within most industries. It’s important to note that this shift in expectations isn’t driven purely by the presence of new technology; rather it comes from a fundamental change in the way individuals behave online. Individuals have grown accustomed to interacting with brands through social media platforms, expecting personalized experiences and personal attention.
How You Can Use Data & Analytics:
You’ll want to start by considering the question “What is our primary data collection method?” It’s important to note that this will likely be different for each organization, which is why you’ll need to take some time in order to truly understand how your business collects and analyzes its data. The biggest benefit of understanding your company’s digital makeup is the ability to automate processes through software or artificial intelligence (AI). If you aren’t sure whether you’re utilizing AI at your organization, think about uploading an image in MS PowerPoint; chances are it auto-enhanced the photo. This is a very rudimentary form of AI known as Image Recognition.
Using automation within specific strategies can have several benefits including reducing manual processes, increasing productivity, and increasing data security and increasing customer satisfaction.
It’s important to note that the rise of social media isn’t limited to just individual use. Businesses are also increasingly utilizing social media platforms to interact with their customers. Social media has become an incredibly powerful tool for businesses looking to increase their visibility in search engine rankings and drive traffic toward websites or physical locations. One way many businesses are using this information is by creating targeted advertising campaigns based on user comments, demographic information and past purchasing history (see example below).
How You Can Use Social Media:
Another benefit of digital transformation can be seen in the emergence of chatbots; these AI-powered bots tend to mimic human conversations when interacting with other digital users. Chatbots can be used to track customer service requests, automate systems and provide information within the context of a conversation (see example below).
Another benefit of digital transformation is an increase in organizational efficiency. This increased efficiency comes from using enterprise-level software to streamline internal processes, such as project management or client outreach. These programs tend to come with mobile apps and other integrations that allow organizations to access their data and workflows anywhere, anytime (see image below).
How You Can Use Business Optimization:
One way businesses are increasing productivity with business optimization platforms is through the use of cloud storage for digital files. Businesses can upload all of their documents into these services, then share them internally or externally as needed (see image below).
Finally, it’s important to note that digital transformation isn’t just a buzzword used by marketing teams – it indicates a fundamental shift in how businesses collect and synthesize data through new technology. These platforms have become an expectation within most industries, meaning that if your business is not leveraging digital technologies to help solve specific problems, you may be falling behind the competition.
How You Can Stay Ahead of Digital Transformation:
In order to stay ahead of the curve you’ll want to start thinking about ways to evolve beyond traditional marketing strategies. The easiest way to do this is by hiring a college intern who can assist with management and strategy for analytics, artificial intelligence and social media platforms. In many cases these interns will be more knowledgeable on these topics than even top management.
One big tip is to avoid getting lost in the seemingly endless sea of new digital technologies available within the market. Rather than trying to become an expert in every single field, think about your company’s needs and how they can be met through specific platforms. For instance, if you run a healthcare practice don’t try to adopt an AI or business intelligence platform that may not apply or align with your core values.
As you start embarking on your digital transformation journey there are some key questions you’ll want to ask yourself: How can I automate processes? What data sets do I need to collect? Where should this data be stored securely? How will this affect my customers or employees? And lastly, how can I use this information to improve future workflows?
Be sure to check out the interactive Google Sheets doc mentioned in the article above for a few more digital transformation projects worth checking out.
Organizations should start thinking about how to take advantage of digital transformation. The process can be broken down into three key aspects: business optimization, social media and chatbot integrations and the use of machine learning/AI learning for digital processes.
While it may seem like a monumental task, taking advantage of these technological advancements can help improve internal processes while also improving the quality of service provided to customers and clients. Additionally, many tools such as cloud storage or CRM platforms can help businesses stay organized and efficient at all times.