HOME ABOUT US SUGARCRM » CUSTOMERS BLOGS & INSIGHTS EVENTS

MEDIA CONTACT US

Insight Article Type keywords...

14 OCT 2014 WENDY EVANS BUSINESS, BUSINESS SUCCESS, CUSTOMER ENGAGEMENT,DIGITAL TRANSFORMATION, LEADERSHIP, MARKETING, SALES

0 COMMENTTransform Digitally or goExtinct

You might have seen it in the news, the message to business isclear: transform digitally, or go extinct – and you would be hardpressed to find an analyst that would disagree. But there is a lotof confusion over what digital transformation is and how it can beapplied. So to help you understand the basics, we iron out digitaltransformation, identify what is driving the change and discusshow strong leadership can make the process easier.

 

WishingYou aHappyHolidaySeason!22 Dec 2014

CampaignPlanningTemplateforLinkedIn &GoogleAdwords19 Dec 2014

Recent Posts

Contact InsightfulCRM on 1300 307 147

photo credit (cropped): Matt Callow via photopin cc

What is digital transformation inbusiness?Digital transformation is the process of embracing digitaltechnologies, and it is thought of as the third and final step inbecoming truly “paperless” (digital competence → digital literacy→ digital transformation). In this final stage the use of digitaltechnology enables new types of innovation and creativity in aparticular area, rather than simply enhancing or supportingtraditional processes.

From a business perspective digital transformation is the processof whole scale change that affects every aspect and function ofthe business from HR to technology, to communications, salesand marketing. Businesses around the world are using digitalservices such as analytics, the cloud, big data, social media and“smart” digital technologies as well as improving their use ofexisting traditional technologies through intelligent software tokick start digital transformation. These choices, coupled withclear strategy, allow businesses to better understand theircustomers, to change customer relationships, and adapt internalprocesses to changing needs. Below is a graphic from Altimeterthat illustrates some of the key elements of digitaltransformation.

 

Whole-scale change vs constantinnovationBusinesses usually (but not always) only undergo large-scaledigital transformation when they haven’t kept up with changes intechnology or when have fallen behind adapting to the demands

How Do I Fix Data inSpreadsheets: Proper Case17 Dec 2014

8 Tips forCreatingStandoutContent16 Dec 2014

13 CoolTactics toPrevent aPressureBlowout atWork09 Dec 2014

B2B and Social Media (15)

CRM (12)

CRM in Higher Education(4)

CRM Industry News (10)

Digital Insights (4)

Digital Transformation (2)

How long is a piece ofstring? (7)

InsightfulCRM CompanyNews (4)

Insights from otherThought Leaders (9)

Marketing Automation (5)

Marketing News (4)

Marketing Strategy (35)

Blog Subjects

Elements of Digital Transformation: The Wheel of Disruption. photo credit: AltimeterGroupvia photopin cc

of their industry and customers. Digital overhaul doesn’t oftenhappen by choice because it can be expensive and risky,especially when it is on a large scale. However, a business that isconstantly innovating and adapting is unlikely to need to undergofull-scale digital transformation rather small constant changes toprocesses and procedures allow for gradual, less riskytransformation.

 

Who is driving the change?In many businesses marketing teams are leading digitaltransformation as new technology and tools become available. Inaddition many transformative initiatives start in customer-facingfunctions such as support and customer service. Companies thatembrace these initiatives then become more customer focusedthrough the use of digital technologies. While the success oftransformative processes relies on co-operation andcollaboration between departments, the changes can also be asource of conflict between them. For these reasons, successfuldigital transformation requires strong leadership from the top.

 

The importance of a “top down”approachKirill Tatarinov, executive vice-president of Microsoft BusinessSolutions, stated that:

Quirky (11)

Relationship Management(25)

Sales 101 (7)

Sales Effectiveness (42)

Startup (4)

SugarCRM How do I? (20)

SugarCRM Technology (4)

Training (2)

When I find great examples of a digitalenterprise it’s the CEO who is the leader andthe driver of digital transformation in almost

every one of those cases.

And, according to Michael Barnes, vice-president and researchdirector at Forrester:

CEOs must absolutely embrace digitaltransformation, and those that don’t risk boththeir own jobs and their company’s long­term

success.

They are not wrong. Strong leadership from the top, from thosewho embrace digital technologies and are keen to implementsuccessful digital transformation, is incredibly valuable to theprocess and will help a business to be more competitive andsuccessful long term. Strong leadership also keeps the process oftransformation on track and helps to motivate and inspire thosewho are implementing the change.

 

The state of digital transformationDespite advantages of top down leadership, a 2014 study byAltimeter found that this top down leadership was rare. They alsofound that where digital transformation was being lead from thetop, it was being driven by the CMO (54%), CEO (42%), and theCIO (29%).

In 2011, a three-year study conducted by the MIT Centre forDigital Business and Capgemini Consulting found that only one-third of companies globally had an effective digitaltransformation program in place. In 2014 Altimeter found that88% of executives and digital strategists stated that theircompany is undergoing a formal digital transformation this year.However, they found that only 25% had mapped out the digitalcustomer journey and of strategists, 42% had not researched thecustomer journey, but were investing in digital technologiesanyway.

So, even though there is a growing trend for digitaltransformation, a lack of research into the customer experienceand a deficiency in top down leadership could negatively

photo credit: ♥KatBPhotography♥ via photopin cc

impact on the success of digital transformation initiatives.

If you would like to know more, you can read Altimeter’s fullreport here.

 

Don’t end up a fossil…Digital transformation has to start somewhere and the process isgoing to be different businesses to business. But what’simportant to remember is that investing in new digitaltechnologies, such as social media, big data, and the cloud,doesn’t automatically equate to “digital transformation”.Transformation is more than that. It is about uniting technologiesaround a common set of strategies and supporting these withmodern and integrated infrastructure, while guiding the processwith strong top down leadership, to effectively compete inglobal markets.

Over the coming years, digital transformation will lead toimprovements and innovation across everything from marketingto sales, customer service and beyond. For effective digitaltransformation to occur it is time for business leaders to fullyembrace digital transformation and lead their companies into thecompetitive markets of the future. Don’t let your business end upa fossil, embrace digital technologies and transform with strongleadership and innovative strategy instead!

You might also likeDigital Transformation inGovernment

Using Social CRM for Business

Be Found: New Lead GenerationStrategies

B2B with Social Media: How to BuildYour Audience Online.

Further ReadingThe 2014 State of Digital Transformation Report – Altimeter

Group

Microsoft Urges Leaders to Embrace Digital Transformation – WAToday

Digital Transformation by any other Name - Jason Bloomberg

Digital Transformation Creating new business models wheredigital meets physical – IBM

Digital Transformation – IBM

Digital Transformation – Google Books

 

About the Author

Wendy Evans is a marketing specialist atInsightfulCRM with a degree in Media andover 10 years of experience in business,educational and marketing roles. An awardwinning writer, Wendy also loves toresearch and get creative with content andmarketing solutions. When not in the officeyou might find Wendy lost in a good book,studying for her Masters Degree or chasingZen at a yoga class. Wendy can also befound on LinkedIn.

Social Share

Tell us what you think

Logged in as Robert Klose. Log out?

Post Comment

InsightfulCRM helps our clients better engagewith current and future customers through theuse of innovative technology.

We use SugarCRM to deliver customer-centricstrategies for lead generation, sales, service,and loyalty.

InsightfulCRM is a SugarCRM Platinum Partnerand recognised developer.

About Us

Our privacy policy is available here

Privacy

WishingYouaHappyHolidaySeason!22Dec2014

CampaignPlanningTemplateforLinkedIn&GoogleAdwords19Dec2014

HowDoIFixDatainSpreadsheets:ProperCase17

Recent posts

Dec2014

© InsightfulCRM Australia 2013