Businesses worldwide are undergoing digital transformation and dominating the market today. Small companies are also harnessing digital transformation’s power, modernizing business models, optimizing internal processes and building new value chains. According to Cisco, they are expected to increase GDP growth by about $2.3 trillion by speeding the digital transformation initiatives.
Transitioning to digital initiatives comes with its fair share of challenges, but a well-planned implementation strategy could serve as a gold mine to help get the most out of your business.
The cornerstone of ultimate digital transformation is redefining how a business does business with digital technology at the leading edge. It is an opportunity for small businesses to embrace technology that boosts efficiency and improves agility creating fundamental change. This includes developing new business processes and improving team culture and customer experiences.
So, what efforts should small businesses make to guarantee they implement the best digital transformation strategies? This article will help you as it outlines the best practices for creating a winning plan and serves as a guide for small businesses.
1. Think big, start small.
When developing your digital strategy, thinking big can help you embrace the possibilities and explore all potential solutions to discover more about what your business can gain from going digital. It will lay the groundwork for subsequent efforts and help gain support from teams and leaders.
Now here’s the thing—using the right technology and a basic plan can help you digitalize your business, but investing in too many digital channels early on will spread you too thin. It’s best to have a broad perspective while keeping your execution focused.
Follow the proper steps and set aside enough time to figure out an effective strategy to kick-start your efforts. One approach is to assess two or three valuable use cases where your business would gain the most from the shift. It will be simpler to prioritize your tasks and concentrate on immediate outcomes that you can improve upon.
The business can only sustain the change if there’s a cap on the number of changes made at once. Consistent changes can halt all your digitization efforts. Therefore, trust the process and develop new ideas rather than just focusing on the end result.
2. Prioritize strategy before technology.
Technology introduction is a strategic step toward digital transformation for businesses. However, any attempt to bring forth new and unique concepts through technology would be met with a defense if it didn’t align with what people want and believe. That is because most businesses prioritize multiple technologies rather than integrating the change into the entire business plan.
MIT Sloan Management Review and Deloitte’s digital business study found that the power of digital technologies isn’t the technology itself but how businesses incorporate it to improve their businesses and work. A distinct business strategy planning and a culture and leadership team prepared to lead the transition can set small businesses up for success.
While many technologies can sometimes add nothing of real value, the correct strategy will help you attain your objectives as a business. Rather than integrating multiple technologies, focus on creating unique strategies.
3. Manage the power dynamics with data.
Instead of being data-informed, businesses frequently focus on becoming data-driven. In other words, data shouldn’t be used as a substitute for existing experience and knowledge. It would be best if you put your efforts into implementing technology that lets your team reach conclusions and value from varied datasets.
When developing a digital transformation strategy, businesses rely on their chosen technology before analyzing their data. Rather than depending on previous experiences and analysis, a company must be able to question its status quo by gaining insights from current, updated data. Without data analysis, there’s a high chance you will be aware of all the shortfalls your team needs to work on—however, the risk of overlooking the gaps that your customers frequently encounter increases.
Data analysis and its delivery can help your small business determine the most appropriate solutions to challenges, resulting in developing a better digital transformation strategy and making the most effective use of the transformation process.
4. Master the company culture.
It takes something less tangible than software, artificial intelligence or other cutting-edge technology to effectively foster a culture of digital transformation. The right technology will spark organizational change, but only if it is backed by a team fully committed to accepting it. According to Mckinsey, employee resistance is the main reason why digital transitions commonly fail, at a rate of 70%.
Small business teams typically resist significant changes, so any transformation can be challenging. Here are some crucial factors to remember.
Lead by example.
Your company’s leadership must be aligned, and managers must embrace new techniques, digital tools and channels enthusiastically.
Communication is the key.
Discuss the digital transformation plan with your team. You can prepare your people in advance by demonstrating how crucial it is to match culture with future initiatives.
Training is a never-ending cycle.
At every level of deployment, there must be a plan for change management and personnel training. Set your team with a weekly training schedule, keep them updated with the latest trends and technologies and make sure you are consistent with the entire approach.
Recognize and value input.
Set up an open platform for employee feedback on transformation initiatives and regularly evaluate, promote and recognize staff members.
Regardless of how rapidly technology progresses, staying on top of trends is becoming more crucial. Employees must adapt to organizational structures and a culture of innovation to allow long-term market adaptation.
While the digital era has its share of snags, gradually adopting the aforementioned practices can improve your digital business transition strategy. It is crucial to check in with your team and your goals. Do the updates you’ve implemented promote your prioritized goals? Is there an approach that could be better? As a small business owner, you must address these concerns to develop more durable partnerships and understand your clients’ demands.
At a time of rapid outbreak of various viruses, there is a growing demand for working from home due to limited travel. As such, companies desperately need a platform that can make it easier for employees to work together and many Vietnam business consultant out there can help them to solve this problem, not only to help you save costs and time, but also improve the productivity of your business.