In the era of digital technologies, we cannot imagine a successful company that does not keep up with modern technological trends. Have you ever wondered how to make your business more effective? Are you interested in technological innovations? If so, digital transformation is a solution for your business.
According to recent research, over 39% of companies worldwide include digitalization in their business strategy. However, there are many myths about the digital transformation which can confuse someone who is considering this improvement. Don’t worry, though! Having extensive experience in this sphere, we are here to dispel seven popular myths related to digital transformation.
What Do You Need to Know about Digital Transformation?
Most digital transformation myths arise due to poor understanding of this process. So, what exactly is meant digital transformation? This term describes the integration of digital technologies into business to change its performance and open new opportunities. It is a complex process that requires cross-department collaboration to apply digital technologies in a strategic and prioritized way.
When we talk about digital transformation, we usually refer to changes in a business. However, this approach can impact governments, analytical agencies, public sector companies, etc. What is more, some countries, such as Japan, aim at digitalization of all spheres of social life by creating a “super-smart society.”
Top 7 Digital Transformation Myths
Like any other modern trend, digital transformation is surrounded by numerous myths. Some of them are quite innocent while others can completely distort the idea. We will discuss several popular myths of digital transformation in detail to provide a clear understanding of this subject.
1. Better Technology Is a Key Point of Digital Transformation
Many people make a mistake of thinking that digital transformation means simply digitalization of the business. While the technical part is important for the improvement, the organizational structure and culture inside your company also need to undergo changes. Digital transformation requires not only switching to modern software, but also establishing new roles, specific skills, and changes in the leadership model.
2. Digital Transformation Can Be Implemented by Top Managers Only
Some leaders may find it hard to cope with their role in the new conditions, refusing to share responsibilities and restructure the funding for agile management. However, the success of digital transformation depends on the work of the entire company and cannot be implemented by top management group only. You should focus on the cultural change inside your company, encouraging communication to collect valuable bottom-to-up initiatives of middle managers and employees.
3. Only Start-Ups and Service Companies Can Benefit From Digital Transformation
Another common myth is that digital transformation is necessary for new enterprises and B2C companies, and less important for the B2B model. Indeed, there are many service companies that have successfully applied new technologies. For example, the New York Times managed to overcome the print newspapers crisis by providing its readers with high-quality online content.
At the same time, digital transformation can solve many problems B2B companies have. Technological improvements can help you to automate the routine processes and raise the efficiency within the company, while a corporal culture of open-mindedness will help to satisfy your clients.
4. You Need to Completely Recast Your Business
In fact, this is one of the biggest digital transformation strategy myths. However, there is no need to completely switch to online communication and digital services. Digital transformation is about bringing more efficiency and effectiveness to your company’s workflow by opening new business opportunities. However, you don’t need to change your business goals fundamentally. On the contrary, it would certainly confuse your clients.
5. Digital Transformation Doesn’t Matter to Customers
You may think that digital transformation will affect only the internal side of your company while the clients won’t notice any changes. However, proper digitalization helps to improve customer engagement by opening new communication channels and providing a convenient, personalized, and interactive service for both individual customers and businesses. Furthermore, digital transformation may become a solution for overcoming competitors on the market.
6. You Have to Transform the Company Just to Be in Trend
Since there is so much hype around digital transformation nowadays, you may fall under the impression that you have to start right now. However, doing it just because you want to be in trend would be an absolutely wrong approach to such a strategic change. You have to prepare for the transformation by learning the business data and analyzing your niche to understand the impact of future changes. The real business metrics of your revenue, customer engagement, expenses, etc., will point on the spheres that you can improve and will make sure the future transformation is efficient.
7. Digital Transformation Is a Quick Process
It is impossible to see significant results fast. Like any other strategic change, digital transformation requires hard work, resources, and time. You should maintain constant workflow in your company, sharing the leadership, changing the corporal culture, and being prepared to face doubts and disruptions along the way. The crucial thing here is to stay patient and focused despite any ups and downs you may face.
8. Digital Transformation is Too Expensive
Any improvement requires investments, but with the right planning, you won’t break the budget. At the same time, digital transformation has the power to improve your company’s workflow and reduce the resources and time spent on routine tasks. Just consider management tools that help to keep all employees well informed while saving time for actual business tasks.
What is more, according to Forbes, digital transformation can increase the company’s revenue by 23%, so it certainly will pay off in the future.
Reasons to Digitally Transform Your Business
Now that you have learned the truth behind common digital transformation myths, you have realistic expectations from the strategic changes. It can be a challenging process, but the result will be worth the effort. And this is how your business can benefit from the digital transformation.
Consider transforming your business for several reasons:
- customers prefer digital experience – people enjoy the kind of personalized high-quality service digital technologies can provide;
- technologies create new opportunities – you can radically improve your company’s performance and open new communication channels involving cloud technologies, social media, IoT, etc.;
- customer expectations are going up – and digital transformation can help you to keep up with their pace;
- skilled employees are more mobile now – you need to shape the perfect work environment because otherwise, professionals will leave you for a better job.
We have dispelled seven digital transformation myths that cover the most popular delusions you may face in the future. Our aim was to give you better understanding of the principles of digital transformation, along with realistic expectations. The digital transformation may be a challenging process, but if you want to meet the customer’s expectations, enhance your company’s workflow, and be open to new opportunities, you should consider transforming your business right now.