Digital Transformation Strategy: What You Need to Know
Digital transformation is the idea of using different technologies to enhance and transform your business’s traditional processes and working on creating new and innovative procedures to meet the need of the market today, fit into emerging market trends and completely changing the way businesses are operated and how to provide value to the customers.
According to McKinsey, there are a few elements that help the brand stand out:
- Digital Speed
Big companies work faster, from building and reviewing digital strategies to allocating them to their use. For example, they redistribute workforce and capital to 3x more quickly than their competitors.
As a leading business, investment in reinvention comes as a core digital strategy that can bring plenty of profitable elements to their businesses. That is where businesses should be ready to reinvent.
- Data-driven choices
As per a famous quote, “The road to recovery is paved with data”. Data can provide great power to faster and more significant decisions. Major high-performing companies are likely to say that their data and analytics have been a major contribution to their growth.
- Follow customers
Retaining your customers when competing with pressure and priorities can be very challenging. But, being customer-centric can help you sustain for a comprehensive longer time and help you generate economic procure from more than 20 percent of your cost base.
Digital transformation strategies in various industries in 2022 with examples.
Digital transformations are spread across industries all over. We have set up real-world examples with industry-specific areas to understand digital business strategy and its implications better.
- Digital transformation in Health careDigital transformation in the medical sector is an assertive use of techno advancements to streamline and enhance a patient’s experience and provide healthcare facilities to patients cheaper.
Technological advancements like booking appointments online, or ease of access to reports online are examples of digital transformations in the Healthcare sector.
Let’s take an example of Brigham Health Hospital in Massachusetts; they allow their patients to book online appointments through online portals and video consultations with doctors. This resulted in acquiring a 97% of satisfaction rate amongst their patients.
Healthcare digital transformation in 2022
● Virtual consultation and telemedicine
One of the most important technologies in the Healthcare industry is the rise of virtual doctor consultations. Techno advancements like these allow the patient to meet the doctors via video call. The coronavirus pandemic is the major reason for the growth in virtual visits and consultations.
As a leading mobile app development company, Technostacks has an experience in delivering app solutions to the healthcare industry. We have created a Telemedicine app that offers patients to book apointments online and it is secured by the HIPAA-compliant environment.
● Patient Portals
Another emerging technology in the Medicare industry is patient online portals. These platforms are made for patients to access their appointments, health records, health reports, etc. It is said to be one of the most significant technological changes that have engaged patients.
This change provides ease of access and transparency among the patients. The data provided in these portals are easily sharable and eliminate the requirement to call and manual transfer records.
● Data Aggregation
When online patient portals help organize data on the patient side, hospitals are working aggressively on working on the back-end data. The data coming to doctors are from various sources like:
· Patient portals
· Health records
· Lab results
· Data from medical devices
With these sources, it is comparatively easier to look at medical history. Data aggregation enhances faster, more informative patient care, and subsequently, doctors do not need to worry about missing any important information.
● AI Screening
It is one of the major trends emerging in healthcare. Hospitals have opted for AI chatbots and voice systems to screen patients. This increased more widely after the hit of the global pandemic, which increased the workload of doctors and medical staff.
For example, Partners Healthcare is a Covid 19 screener, which is a chatbot that tells whether the person requires to take a Covid 19 test.
- Digital transformation in RetailDigital transformation in the retail industry is the infusion of new technologies in different verticals of the digital age. It includes things like contactless ordering, pickup, self-checkout, and AI monitored product recommendations for retail industries.
According to a Capgemini survey, it was found that 45% of consumers want digital payment options, and more than 40% prefer touch-free, self-checkout systems.
Retail digital transformation in 2022
● Customer experience like Target
The ‘Target’ app creates an amazing customer experience from 2016, the brand had different apps for creating accounts and finding discounts and coupons. Target wanted to encourage online shopping rather than usual shopping, increase customer enrolment, and more. The brand curated all of the apps into a single app to solve these concerns- the Target app.
● Self-training from Takealot
Not every digital transformation is for customer experience. Takealot is the biggest online retailer in South Africa, it works on a B2b model. It works with third-party sellers in the African continent, gradually their business increased in support tickets.
● Sephora uses facial AI technology in its app
A very famous cosmetic and skincare beauty brand, Sephora took a digital transformation in 2016 by directly responding to customer concerns. According to their executive VP, matching the correct shade of foundation was a big pain for shoppers.
Sephora launched their Virtual Artist app that helps shoppers find their correct foundation shade through facial scanning technology. The shopper gets a colour IQ number and personalized and customized recommendations in the virtual artist app.
● IKEA uses AR for at-home product tours
Imagine buying a piece of furniture or a home decor item without buying or even going to the store. IKEA made it possible through Augmented reality to let their customers see what the piece of item would look like in their spaces.
The company started working on the new AR app because majorly IKEA stores are on the outskirts of the city, and it is challenging for customers without cars to reach their stores. With the app’s help, customers can visualize what it would look like while the product is still in the app. Only six months after the launch of the app, it became the second most popular AR app.
Also, Technostacks has developed an AR-based app called AR space design app. It offers you to try a variety of products offering different color shades to get the most excellent shades fitting to your interiors. You can browse through multiple products and observe which would look the best for your space before purchase.
● Carrefour collaborates with Google to digitally transform its business
Carrefour is a grocery industry that recently partnered with Google to increase its e-commerce goals through a cloud migration strategy.
The idea was their collaboration to connect Google home and other google voice products and link them with the Carrefour account. They can add grocery items via voice and proceed to checkout.
- Digital transformation in HR and recruitmentA survey done in 2020 states that 38% of recruitment agencies agree that increasing through technology and automation is one of the most important focuses in recruitment and HR processes.
Adopting new advancements can level up your hiring processes more easily and adaptable. It can bring more intelligent and qualified candidates and can benefit you reduce your overall new employee acquisition.
- Digital transformation in the public sectorAccording to a digital engagement report published by Twilio, the pandemic Covid 19 was the digital accelerator of the decade. This might become an underestimation. The speed at which big giants across the globe are tracking the digital transformations is unmatched. Before the pandemic, digital techno advancements were vital for the time ahead.
This is why companies Amazon give an efficient, faster, and contactless customer experience. This is evident that Amazon’s market has increased by $700 billion since the pandemic.
But, this kind of fast-moving digital transformation is more relevant to government bodies.
Government organizations have to fulfil services for the well-being of the people. Since lives are at risk in the pandemic crisis, the government needed to transform digitally to keep up with the upcoming requirements and protect the citizens.
Digital transformation or digital government is not only improving efficiency in organizations improved and enhanced public services.
Areas of Change where government needs Digital Transformation
● The workplace
Line-of-sight vision is not necessary for today’s time at remote workplaces. Zoom and MS Teams have replaced the general conference meetings in board rooms. Remote work and learning have thrived within the boundaries of the IT sector.
Before Covid 19, the discussion was whether government workers should be present in the city. Hiring government employees was a lengthy process, but hiring the right applicant for the body is easier after adopting an AI-based recruitment process. Virtual onboarding has been an accelerant to this process.
With growing digital transformations, government bodies can easily track the work record of their old employees in different departments.
● Service Delivery
The pandemic is forcing government bodies to look at delivery services differently. Digital platforms and portals tend to have a user-friendly, easy, and simple interface to work. They try to include a feedback page at each stage to make it more engaging. COVID 19 has realized in people’s lives that only a few services need manual delivery.
Verticals like Healthcare and education have also seen components of digital transformations like crowdsourcing ideas to take care of the pandemic crisis more efficiently. The crowdsourcing collaborations are working because of the digital transformation.
● Speed and Process
Government organizations, have always been lengthy and slow. With several iterations and longer discussions, government policies have been obsolete since they were released.
However, the situation has changed, and the government has started to act fastly to combat the times of panic. Decision-making has become quick. The current legacy seems to be changing. Similarly, procurement of requirements like testing kits, covid kits, and hospital records is an example where the government has been swift by using technology.
- Digital transformation in Insurance
The modern policyholder wants an easy, mobile, and happy to take up policies from new people in the Insurance vertical. In other words, customers prefer P&C companies for their digital transformations. Your P&C company needs to start its digital transformations if it hasn’t started. You can choose a DAP (Digital Adoption Platform) that can help you reach your goals.Benefits of Digital Transformation in the P&C Insurance industry
● Customer Experience
An improved customer experience for policyholders helps businesses streamline the customer experience. Insurance policyholders can access all information at a single place.
● Lesser cost for P&C insurance companies
Self-service portals, automation, and building cloud storage improve customer efficiency and reduce the need for manual staff, eventually reducing operating costs for these companies.
Lesser cost means high profits. As a report by Ping An Life Insurance, the P&C unit grew to generate 70.7% because of its loss assessment and customer persona technology.
Digital portals that are self-service allow companies to reduce their support staff and serve more customers.
AXA’s platform helps brokers to look at the status of claims in daily life, channel suppliers and keep a track record. Before using this portal, the company went through a long stream of update calls and low on retaining the brokers.
Another major example of increased P&C scalability is in traumatic catastrophic events, when disasters, agents, and health providers need to move quickly to provide customer support and claims for policyholders who have gone through a traumatic event.
● Reduced risks and fraud
This is the time of smart devices in homes and in cars and office spaces. These help insurance providers track policyholder activities and monitor to gauge any risk. In terms of claims, they help assess and reduce fraud risks.
The SmartRide by Nationwide tracks the driven miles, driving, rash, hard-driving, and accelerate to bring exact quotes.
Artificial intelligence platforms are one of the biggest providers to help insurers monitor false claims. They track and refine any public data available and gauge it to claim before any decision making.
Scope of digital transformation
Businesses with digital transformations are completely new, but by offering a few fundamental improvements the efficiency, safety, and personalization, you can digitize your business.
The evolving scope of digital transformation has accelerated since the COVID 19 pandemic. It can says that the speed of digital transformation has started accelerating due to the pandemic, and organizations need to leverage digital technologies for their business.
The digital landscape works on business with digital transformation. All this while companies were expanding day and night shifts in new trends. The best approach to enhancing change and adopting transformation is by creating a solid digital business strategy that allows quicker deployment.
Components and examples of digital transformation strategies
- MLB- Collaborative hiring processMajor league Baseball (MLB) is making its recruitment journey collaborative as before starting the business’s digital transformation, MLB’s employees and managers could not able to access their central recruiting process. Each evaluation and information were kept for each manager assigned.
MLB substituted their current system to Greenhouse, a hiring platform that stores all the important information at the centre for hassle-free access. Employers and employees can easily access the greenhouse platform and see where the candidates are. They can refer, increase the candidate and keep the recruitment up to date.
- Atos: SAP success factor
The HR digital transformation of Atos, it is an international IT service provider. The workers of Atos found that data stored in SAP success factors, their main HD system, was not linked with the company’s employee information. The recruitment process had several touchpoints with employers mailing about candidates and waiting for physical offer letters. Thus, the company required a solution for 100,000+ employees across more than 60 to 70 countries.They chose PeopleDoc, cloud-based software and integrated it with Success Factor so that all the employee documentation could be stored and accessible. PeopleDoc also enabled employers to create offer letters and e-signatures automatically. Cloud-based technology resulted in time-saving, and the recruiters no longer spend effort and time creating, printing, and then emailing the letters.
- Anchor Trust- Chatbots
Anchor Trust is a group of companies providing non-profit housing and care services. The company group had a lot of mobile applications for new hiring, but it went low on engagement and follow-ups. Applicants were not interested in responding to messages or phone calls from the hiring team.The anchor then built a smart custom-made chatbot for the Facebook Messenger app. It started a send message call to action button that helped users to click directly to the company’s chat head. Due to this, the company engaged with candidates, and it took the stress from the upfront work of the employer.
The chatbot figures out the employee’s position, if the candidate is interested, qualifications, and the distance. It collected the candidate’s user information like name, address, email, phone number, etc. Anchor’s conversion rate reached from 2% to 27%.
- HopperHopper is a travel app company that transformed its hiring pipeline into a single centralized portal. Hopper was growing rapidly and struggling with recruiting software engineers; they had an old tracking system and an inefficient monitoring process for scheduling.
Hopper adopted a new technology, Lever, a recruiting portal that streamlines and organizes the entire hiring ecosystem. Lever provided one dashboard for managing and monitoring different aspects of hiring.
It included an easy interface, hassle-free management, and enabled Hopper to track metrics, number of hires per employer, a position they are hiring for, and interview scheduling.
- Sapphire VenturesIn addition to bringing the applicant hiring, digital transformations can make work uncomplicated for your HR team. A perfect example of this is Sapphire Ventures, a venture capital company. The company’s executive team is for building a connection of network of talent to fill up the company requirements as the positions open.
The company used Google Docs and Google spreadsheets to track potential candidates, which was time-consuming and difficult to find names and information. The stationary format makes it difficult to monitor applicants over a period of time. Sapphire adopted Thrive, a TRM platform (talent relationship management). It has a google chrome extension to easily add new information and add hiring managers to tag candidates.
- Johnson & Johnson
A big wellness and childcare giant, Johnson & Johnson recruits around 25000 jobs every year worldwide, yet their job descriptions were from the 1970s with a few changes. Johnson & Johnson needed to change their job descriptions to today’s times to make them appealing to the candidates.They did a major digital transformation and started using Textio, an augmented text platform that uses highlights like gender-neutral job descriptions, which were earlier inclined towards males. Integrating Textio increased in hiring of qualified candidates, including more than 87000 women yearly.
Core elements of digital transformation
- Understanding the massesDigital transformation begins with understanding people, a reminder about data- especially useful data- humans at the end. For big giants, the aspect of creating a digital transformation strategy component refers to the power to access their customers, clients, and employees. History says that these relationships have been poor on record.
If you think about Msme’s and small business owners, the salesperson has a great ability to access their consumers and clients. But what happens when a big giant or an organization becomes too large to understand its customers and clients is where new-age technologies and digital transformation strategies are required.
- DataIf you want to level up the knowledge you have about your consumers and employees and put it across a giant organization in more difficult situations, you must preserve your data. This is where digital technologies for your business create the biggest impact – the process of keeping and preserving the digital records of the people (their user information, why they prefer, etc.) is a digital solution for your business.
- InsightsInsights are the most useful components of a digital transformation strategy, no matter how hailed data we have, the value-driven factor comes when we keep it organized and clean it to make something impactful.
Without a proper framework, clearing the data will be of no use. But with appropriate tools and expertise, data can be useful and Insights could be used as analytics.
Key Advantages of Digital Transformation
● Employee Efficiency
Digital transformation makes employee workflow faster, quicker and more effective.
Let’s take an example of paperwork management to share documents to the correct location; with the right digital transformation, it automatically reaches employees resulting from the involvement of employees in better profit-generating activities.
● Better user experience
Digital transformation allows businesses to eliminate more customer friction, and providing your customers with a smooth, user-friendly experience results in more revenue generation.
● Growth in Business revenue
With the better employee effectiveness and better consumer behaviour digital transformation results in improvements.
FAQs for Digital Transformation Strategy
- What is Digital Transformation?
Digital transformation is about how an organization embraces digital technology and deploys its employees and professionals. It involves reanalysing the nitty-gritty that thrives on getting better values and services delivered to satisfy the consumer’s expectations.
- What are the main areas of Digital Transformation?
If a company is pursuing a Digital transformation project, these areas they should consider
● Process Transformation
● Business Model Transformation
● Omnichannel transformation
● Domain Transformation
● Cultural Transformation
- Why does a business require a digital transformation strategy?
Most companies have to adopt a digital transformation strategy to survive at a time when agile businesses disrupt the industry. At the time of the COVID 19 pandemic, a company’s ability to behave quickly to customers’ expectations has become tricky.
Digital transformations give an understanding of consumer behaviour, revenue, and productivity.
- What are the core elements of digital transformation?
The core elements of digital transformation begin from understanding your consumer’s behaviour to their cultural change and communication and technologies to be implemented for the digital business strategy. Digital transformation is like a customized roadmap to take huge modifications in the business.
- How do you develop a digital transformation strategy?
To develop a digital transformation strategy for your business, start from your research to get an audit, as it is crucial to understand the area, identify your business’s outcomes and objectives, and conduct an analysis of competitors and the market size.
- What are the main components of digital transformation?
While planning a transformation strategy, understanding your objectives behind the transformation is crucial; a data-driven approach is likely to get the best outcome and is holistic in terms of consumer acquisition. Similarly, adaptability to new market shifts and trends is important for the workflow and is efficient for the business.
- Which are the technologies used for digital business transformation?
To start your digital transformation journey, there are numbers of technologies you can use as per your industry and market needs, like Augmented Reality and Artificial Intelligence. A customized and integrated approach is considered to be ideal for any business.
- What is the scope of digital transformation?
The scope of digital transformation has increased since the Covid 19 pandemic, and companies have witnessed major revenue and digital empowerment growth.
Here we have discussed the best digital transformation strategy for businesses. We have seen the industries that can adopt digital transformation, core elements, components, and advantages of using digital transformation strategies.
If you want to convert your business digitally and want to enhance your revenue then you can contact us. Technostacks is a top IT company that has experience in working with diverse cliently and industries globally. Get in touch today for your business digital transformation consultation.