Digital Transformation Optimization: Best Practices

Digital transformation a term is used to describe the process of changing a business to make newer products, services, and models. This includes the implementation of eSignatures, eForms, ID verification, and more. These tools completely alter business processes and customer experiences in a positive way. As a result, when a business commits to a digital transformation, it tends to gain the upper hand against competition and thrive.

What is Digital Transformation?

When digital transformation occurs within a business, it uses new technologies to create or change existing business procedures, culture, and customer experience. The overall goal of any business during this process is to leverage emerging digital technologies to scale and improve existing processes. Companies are following the changing demands in the business world and market. Digital transformation at its best is very customer-focused, as it is all about improving customer engagement during the switch from paper to digital.

Best Practices for Digital Transformation

Digital transformation requires a ton of planning and hard work — the process cannot simply be done overnight. Many businesses underestimate the process and fail at their attempts. In fact, according to McKinsey, 70% of digital transformation efforts fail to reach their goals. With this percentage being so high, it is important that any business undergoing a digital transformation does so the right way to avoid wasting time and money. Here are some of the best practices for digital transformation to help your business grow:

1. Ensure a committed executive workforce

The most important factor of a successful digital transformation is executive alignment. If your high-level executives are not on-board with the transformation efforts, the project will most likely fail. Digital transformation is a top-down process, so if the C-level executives are not aligned, the rest of the workforce will have doubts as well. And with doubts come little motivation and effort to make it happen. Plus, the owners of digital transformation efforts are typically CIOs and CEOs (51%). So, a strong, established leadership is a necessity.

2. Clear communication with all employees

It is vital to make sure all employees are constantly on the same page and have goals that are aligned. One way to do this is by communicating a “change story” — help employees understand where the organization is headed, why it is changing and why the changes are important. When a company does this, they are three times more likely to have a successful transformation. Additionally, using digital forms of communication within the organization increases communication. Messages are more easily spread and understood this way, as opposed to in-person or traditional channels of communication. Plus, when senior leaders use digital channels to communicate with employees, the success rate is three times greater.

3. Keep track of budget and resources

It’s no secret that a complete digital transformation is very expensive, but the “cost” is nothing compared to the benefits in the end result. It requires a significant investment of money, time, and effort. The International Data Corporation (IDC) predicts that global spending on the necessary technologies and services for digital transformation will reach $2.3 trillion by 2023. Typically, companies need to free up budgets and resources from other operations and allocate them to the transformation process. This allows for a strong focus on prioritization and value-based budget allocation. Resources and budgets are usually distributed among numerous divisions and lines of business, and innovation leaders take time to gain access to said funds and talent. However, many divisional and line of business executives are not open to the idea of halting existing projects, which creates pressures to rearrange funds as well as friction for assessing top talent. As a result, 54% of organizations feel that the digital talent gap is holding them back in the digital transformation process. To avoid these issues, organizations must plan ahead and thoroughly assess their financial situation. It is also important to remember that in the end, digital transformation is meant to reduce costs, so the right technology will ultimately pay for itself.

4. Create a culture for innovation

Organizations that are most successful in digital transformation are those who create a strong, positive culture in which ideas are always flowing and everyone is open to trying new things. A recent survey indicates that over 47% of organizations are investing in creating a culture for innovation, mandated from the executive level. Additionally, 46% of companies stated they are building in-house innovation labs with dedicated resources. Creating a culture of innovation is more than just investing money and resources though. It also requires employees to work together and be on the same page. With so many changes going on inside, it can be difficult to ensure everyone is on the right track. It is up to the leaders of the team and everyone’s top communication skills to keep the culture intact.

5. Build skill-sets

The lack of digital skills is a major setback that organizations face during digital transformation. The whole process of the transformation is about going digital, so how can this happen when employees do not have the digital skill-sets? It can’t. As a result, investment in new skill development and training is vital. An Industry Week report compared performance management, leadership/management training, and skills training. Skills training took the leading spot with 52% of companies planning on investing to improve skills. In fact, all this company training can not only help on an individual level, but also in a group effort. Employees can work together and share what they know to further everyone’s knowledge. In turn, the company as a whole becomes more educated and skillful. These five practices work together to best optimize digital transformation and benefit both the business and its customers. The days of annoying paperwork and traveling back and forth to physical locations are over. In fact, with Lightico’s top of the line platform, businesses can amplify their customer experiences, reduce costs, and complete processes much faster. Learn more about Lightico’s eSignatures, eForms, digital payments, ID&V, and more at Lightico.com.