Digital technology is changing industries for the better. However, with new technology, comes a need for companies to undergo digital transformation in almost every facet of the business. Digital transformation is the integration of digital technology into all areas of a company and is considered by many organisations as a survival issue. These changes fundamentally alter how the business operates, both internally and externally.
Large scale changes to a business can be complicated. They take time, but the results demonstrate the benefits of the practice. A staggering 70% of companies have a digital transformation strategy in place, or they are currently working on one. Most digital transformation initiatives are driven by the opportunity for business growth, followed by an increase in pressure from sector competitors. While digital transformation embodies a range of elements, the steps towards a successful digital transformation are clear: a thorough understanding of the digital customer, integrating a digital culture into the company, developing an endemic technology framework, data use, storage, and exchange, and the success of the brand and it’s eCommerce projections and engagement.
Understanding the Digital Customer
At this early stage of a digital transformation strategy, companies have to ask themselves vital questions about their target audience.
Do we know the profile of our digital customer?
Do we understand the consumer journey, and how the consumer finds us? Also, do we understand what platforms customers use to engage with us?
Is consumer engagement on our platforms good?
Do consumers think highly of our brand and product? Does our content resonate with our audience?
Are we a leader in our field?
If companies answer questions honestly and utilise available audience data to make accurate conclusions, they will have a clearer picture of what needs to improve regarding the digital customer. Without a clear view of how the digital customer interacts with a business, a successful digital transformation strategy succeed. The company must change to be able to innovate and offer their target audience the best possible service.
Integrating a Digital Culture
A digital culture describes how technology and the internet are shaping humanity. For digital transformation to be successful, companies must integrate a digital culture into the workplace. Not only does it lead to a successful transformation, but it also impacts corporate culture in a significant way. Digital culture breaks stale hierarchies, increases workplace efficiency, and encourages employee innovation at all levels.
Another critical aspect of any business is personnel, and this is a contributing factor to whether digital transformation will be successful. Companies thrive if they employ the ‘right’ people. 50% of the global workforce comprises of Millennials, who were born between approximately 1980 and 2000. For businesses to attract highly skilled employees from this tech-savvy generation, an innovative and exciting digital culture is essential. Millennials grew up with technology and are accustomed to using a range of technological devices to achieve their goals.
Technology literate employees, who full integrate into a workplace’s digital culture, provide multiple benefits. Employees can connect with each other no matter where they are in the world. For example, applications such as Zoom have never been more important due to the coronavirus pandemic. Positive workplace culture is one that values regular, friendly interaction between employees, and video conferencing applications have made this possible while employees work remotely. The internet also offers new learning opportunities to employees that may not have had previously. If businesses are prioritising new technology, they also need to prioritise employee learning if innovation is to continue.
Developing an Endemic Technology Framework
Companies must have a technology framework which employees use to compete with their industry competitors and sustain sufficient revenue growth over time. By analysing the digital platforms a company utilises, and by assessing the average user experience, we can determine what technology needs implementing for a company to be successful in the future.
Case Study: Digital Transformation Consulting for a Pharmaceutical Brand
For example, we recently completed a digital transformation project with a pharma company. The client needed OneFourZero to undertake an analysis of target digital audiences, platforms and compliance review, as well as a go-to-market strategy. We mapped the digital behaviours and journeys of the company’s customers, healthcare professionals and relevant patient groups. We provided a compliant platform and content roadmap, which would allow the pharma company to reach their desired audience, including recruitment into closed networks. Then, we utilised search and engagement data to make strategic content recommendations for paid, owned and earned channels. This research enabled us to create a clear roadmap for digital transformation, which included the use of new digital platforms and channels.
Data Use, Storage, and Exchange
With digital transformation comes an increase in how much data is used and then stored for future use. As an organisation becomes digital-focused, security concerns become increasingly stark. Every digital activity needs to be secure if businesses are to protect themselves from data breaches. Thankfully, cyber breaches are reducing year-on-year, down from 61% to 39% in 2020. This suggests that companies are better equipped to fend off data breaches as more companies embrace the digital world. However, the costs of cyber breaches are increasing. As companies embrace digital transformation, their businesses, and, by extension, their revenue, becomes deeply integrated with data. If this data is then compromised in a cyberattack, companies can lose thousands in revenue as a result.
It is not only data security that matters, but it’s also how companies use available data. As a result, a company needs access to more data than is currently available to them. OneFourZero can utilise a wide range of data to determine a digital transformation strategy. This includes commercial market size data sets that display search traffic and social media volumes that companies can use as a proxy to determine market size, share and growth. We also conduct digital health checks to understand the digital robustness of a business. By analysing marketing spend analytics, we can uncover optimisation potential and find indicators of wider operational efficiencies.
Brand Success and Projection
A vital aspect of a digital transformation strategy is to access how a brand performs and how they are likely to perform in the future with a suitable digital transformation strategy. By combining more than 17 data sources, our team of expert consultants deliver commercially focused reports and diligence. We use data to determine the demand for particular products and services and how industry competitors are performing. By collating relevant data about how a brand is performing, we can make recommendations that heavily influence the digital transformation strategy. This may involve a reassessment of a brand’s marketing strategy or their eCommerce activities. By analysing audiences and the customer journey, we can understand the strength of a brand and customer cohorts to increase retention.
Digital Transformation and the Digital Maturity Framework
The above points make up what we call a Digital Maturity Framework, which enables us to understand how a company is performing and which areas need attention in the company’s digital transformation strategy. Using this framework, we have assisted traditionally ‘offline’ brands grow their digital capabilities which allow them to expand their businesses to new audiences and generate more revenue.
If your company needs a comprehensive digital transformation strategy formulating, OneFourZero can help. By consulting at all levels of digital maturity, we can provide plans and pathways to a full digital transformation from product and service re-alignment, through to full technological and organisation implementation.
To find out more about onefourzero’s Digital Transformation services in more detail, click here.
