Digital transformation, as the world knows it, is an exciting concept, especially when companies that succeeded without it make the transition into utilizing digital platforms. However, when it comes to integrating new processes in any business, there is going to be a lot of gray area that needs attention and support. 

Any change that’s worth undergoing demands businesses to step out of their comfort zone and embrace it fully.

A great example of this is IKEA which traditionally required customers to visit physical stores to embark on the customer journey. Flash forward to now, with all the IT innovation the company has implemented, it is said that about 80% of customers start their buying experience with IKEA online.

Change in an organization is never an overnight effort and some studies even suggest it takes upwards of 5 years to a decade for significant change to unfold in a business. Obviously, in 2023, this isn’t an amount of time that any company could survive without implementing some form of digital solutions which means that the demand for guidance with IT solutions is beyond significant. 

With that said, the first thing we need to cover is some of the common struggles businesses generally face when beginning their digital transformation journey:

1. The leadership team may not fully understand or support the implications of digital transformation, making it difficult to get the necessary funding or resources for the project.

2. Some businesses may have an outdated IT infrastructure that cannot support their digital transformation goals.

3. Employees may be hesitant to adopt new technologies or processes, or they simply may not have the necessary skills or training.

4. Companies that lack proper data management processes and tools will struggle to handle the vast amount of data that digital transformation requires.

5. Some companies may be hesitant to invest in new technology or processes because they simply don’t have the budget or don’t know how much ROI they will see. 

6. Companies that are not prepared to handle cybersecurity risks may be hesitant to undergo digital transformation.

7. Businesses that lack a clear vision for either what they want to gain from digital transformation or how they will implement it are simply not ready to take it on. 

The common thread in all of these scenarios is the need for proper planning. Companies in any industry can mitigate these risks by simply delving deep into analyzing three things:

• Infrastructure

• Current processes

• Resources

With these aspects clearly identified, the organization can start to develop that vision for its digital transformation. When we talk about the “vision” for digital transformation, we’re talking about the big picture. This change is something that everyone in the organization must be aligned with for it to work. 

When we think about the companies who’ve completely remodelled the idea of how they deliver their service (like that of IKEA), we’re looking at companies who’ve done significant analysis and research of their market and resources at their disposal. With that in mind, now it’s time to go over what needs to be considered during analysis and how the findings will lead to execution.

Plan, Then Do

Analysis: The key inspiration for digital transformation is usually a belief that certain processes aren’t as simplified as they should be. Analyzing everything from the back-end infrastructure to the end of the customer buying journey will help identify the pain points. This analysis should ideally involve collecting and analyzing data on:

• Market trends

• Customer behaviour 

• The organization's operations

Execution: Once the analysis is complete, the next step is to create a roadmap for digital transformation that outlines the specific steps and timelines needed to achieve the vision. This roadmap should include:

• A prioritized list of initiatives and projects

• Required resources

• Potential risks

• Clear metrics and goals to track progress and ensure that the digital transformation is on track (KPIs and benchmarks for each initiative)

This breakdown gives a general sense of the ideal way a company would set itself up during their transformation but it is certainly not set in stone. Every organization has a unique vision and there are going to be points where they need to pivot and re-evaluate their purpose.

The Takeaway

Ultimately the most ROI from digital transformation stems from this aspect of the process, returning to the vision and understanding all the facets of the organization that need to work together. A solid IT infrastructure can only succeed if it’s aligned with the organization's overall business strategy and goals. 

No matter if we’re talking about a start-up, or a fortune 500 business, guidance when integrating IT services is something everyone will benefit from.

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.