Companies must keep up with digital advancements in today’s fast-paced world to stay competitive. Digital transformations help businesses use new technologies to improve operations, provide better customer experiences, and drive innovation. However, not all transformations succeed. To ensure a smooth digital shift, here are seven secrets that successful businesses follow.
1. Invest in Your Team to Drive Innovation
Investing in your team is one of the biggest secrets to successful digital transformation. As companies adopt cloud-based services and third-party tools, IT teams shift from creating technology solutions to managing these external services. This change can create a skills gap within the organisation, which needs to be filled either through hiring or retraining employees.
Take the example of Saatva, a luxury sleep company. According to Evan Huston, chief digital officer, Saatva transitioned from traditional quality assurance (QA) testing to a crowdsourced QA model. This global approach to testing freed up internal resources, allowing Saatva’s internal QA team to focus entirely on automated testing and managing the crowdsourced process.
By investing in training and upskilling their existing workforce, Saatva enhanced innovation without increasing turnover. High-performing employees often have the potential to learn new, complex skills, which can prevent costly turnover and preserve corporate knowledge. By empowering employees to take on more advanced tasks, companies can accelerate their transformation efforts and unlock their teams’ full potential.
2. Thoroughly Vet Vendors and Write Detailed Requests for Proposals (RFPs)
Digital transformations usually involve working with external vendors for technology solutions. Choosing the right vendor is crucial to avoid potential setbacks. Successful companies carefully vet their vendors and write detailed RFPs (Requests for Proposals) to ensure they find the right fit for their needs.
For example, VIA Metropolitan Transit in San Antonio implemented an AI-powered chatbot that provides 24/7 customer service and a mobile app for purchasing bus passes. These technological advances didn’t happen without thorough vendor selection. Steve Young, VIA’s Vice President of Technology and Innovation, emphasised the importance of carefully choosing vendors to avoid service disruptions. Writing detailed RFPs allowed them to ensure that vendors met their specific requirements and avoided future complications.
When working with external providers, businesses should take the time to evaluate all options, ask the right questions, and ensure they are selecting vendors that align with their transformation goals.
3. Free Up Resources for High-Level Tasks
One major obstacle during digital transformation is a need for more resources, particularly time and skilled personnel. Companies should automate routine tasks and use outsourced services to solve this. This allows internal teams to focus on more strategic and high-value activities.
Saatva’s decision to move from traditional QA to crowdsourced testing is a prime example. By outsourcing a portion of its QA process, the company freed up its internal team to concentrate on automated testing, which requires more specialised skills. This shift allowed Saatva to innovate faster and ensure its digital transformation efforts ran smoothly.
Similarly, IT departments that adopt automation can relieve their teams from mundane tasks, giving them more time to work on innovation, problem-solving, and improving the customer experience.
4. Encourage Collaboration at All Levels
Collaboration is a crucial component of digital transformation success. When employees from different departments and levels of an organisation work together, they can share ideas, solve problems faster, and implement changes more efficiently.
Honeywell, a global technology company, provides a great example of collaboration in action. Sheila Jordan, chief digital technology officer at Honeywell, leads a company-wide transformation effort that involves 42 active digital projects. During the pandemic, her team quickly transitioned tens of thousands of employees to remote work. Despite the challenges, Honeywell maintained communication and collaboration across its various business units and functions. This open communication allowed the company to adapt quickly and continue its transformation without significant disruptions.
Collaboration within teams and across departments ensures everyone is aligned with the digital strategy and can contribute to the company’s success.
5. Adopt an Agile Mindset, Not Just a Framework
Many companies use agile methodologies as part of their digital transformation efforts. However, more than adopting an agile framework is required. Successful transformations require adopting an agile mindset—a way of working that emphasises flexibility, iterative development, and continuous improvement.
Charles River Laboratories, a company focused on early-stage drug research, has embedded an agile working method into its culture. The company’s IT department aims to quickly bring new technologies to market by launching beta versions, learning from them, and improving the product in small, iterative steps.
This approach allows companies to test and learn quickly, identifying and solving problems as they arise. Agile thinking enables businesses to respond more to customer needs and market demands, leading to quicker innovation and successful transformations.
6. Focus on Customer-Centric Innovation
Digital transformation should always keep the customer at the center of decision-making. Successful companies use digital tools to enhance the customer experience, improve service delivery, and respond to customer feedback.
For instance, VIA Metropolitan Transit introduced its AI-powered chatbot and mobile app to enhance customer interaction. These tools made it easier for customers to get information and purchase bus passes, improving their overall experience. By focusing on customer-centric innovation, VIA ensured that its digital transformation efforts aligned with the needs and preferences of its users.
Businesses prioritising customer experience during digital transformations are more likely to build stronger customer relationships and enjoy long-term success.
7. Measure Success and Continuously Improve
The final secret to a successful digital transformation is the commitment to continuous improvement. Digital transformations aren’t one-time projects but ongoing processes requiring regular evaluation and adjustment. Successful companies measure the impact of their transformation efforts and adjust their strategies based on data and feedback.
Using data analytics, businesses can track the success of their digital initiatives, whether it’s improving customer satisfaction, increasing efficiency, or boosting revenue. Companies can make informed decisions about what to improve, tweak, or expand their digital strategies by regularly evaluating their progress.
Final Thoughts
Digital transformation is complex, but following these seven secrets allows businesses to navigate the journey successfully. Invest in your teams to foster innovation, thoroughly vet vendors, and free up resources for high-level tasks. Encourage collaboration, adopt an agile mindset, focus on customer-centric innovation, and commit to continuous improvement. With these strategies, companies can unlock the full potential of digital transformation, staying competitive and innovative in a rapidly evolving market.
