Digital transformation: you can no longer ignore it in 2020

Digital transformation: you can no longer ignore it in 2020

At this point in 2019, it's time to look back at our work, but also look forward. At TRIMM we evaluate with our customers how the work went and how we can do it better in the coming year. Topics as personalization, big data, integrations, PIM, lead generation and marketing automation are discussed. However, a more important topic is the foundation that's making the condition of making technologies successful: digital transformation. 

The 'transformation' in digital transformation

Many companies have been working on it for years: digital transformation. A beautiful buzzword that is often talked about. In practice, we see that it is difficult for companies to get a grip on this word because digital knowledge is lacking or there is no focus on digital transformation. If there is a sufficient focus, this focus is on 'digital' and not on 'transformation'. That's where it can go wrong. 

Digital transformation is a strategic topic

Many companies struggle in the digital world. There is often the misconception that only IT and marketing have to work in the digital world. We often notice that it is stored away as a little project at a digital marketing manager. And that's a shame! 

Digital transformation is not an 'IT party', but a topic that needs to be addressed and anchored at the board level. Many companies run the risk that if they do not focus on this, they will lose business to competitors who do participate in digital developments. And with that, you can lose the right to exist as a company. And even worse: your company won't exist anymore in the coming 5 years. 

From digitization to digital transformation

Many companies are in the phase of digitizing internal and external processes. In many cases, this is not yet digital transformation. Digital transformation means that you will over new added value through digital. 

For example: 

• A battery charger is connected to the internet and provided with a data dashboard. Because the data provides valuable input to the consumer, the product delivers new added value.
   
• Lamps can be operated via an app and can be linked to new services such as voice control and geofencing. This creates a new business model. 
   
• Based on user data from similar distributors, a company advises its distributors which product should be entered into the range. As many relevant products as possible are offered to end-users. 

It's important to realize that digital transformation is a continuous process and therefore has no endpoint. 

Customer experience: the difference between B2C and B2B is getting smaller

The core of digital transformation is in excellent customer experience. As a customer, B2C companies neatly inform you about the status of your order, update your bonus points and personalize your offers. These expectations and needs are increasingly penetrating the B2B domain. 

So, for example, the lady who orders in the morning before work at PicNic is the same person who is working as a buyer of an engineer at your customer's side. 

Let's go to work!

For those with a limited budget and resources, we first advise prioritizing. Start by talking to different employees within the organization. They will point out bottlenecks and provide you with valuable input to help you prioritize. Also, talk to your customers. They can often state in detail what they are currently lacking and indicate their wishes. Make sure that you keep your focus and that you are not distracted by the daily routine. 

Another tool that can be used is Alex Osterwalder's business model canvas that helps you look at your current, but also the future business. Look from the perspective of your business strategy and then determine how digital contribute tot this. 

Organization, process, technology

When introducing digital tools and systems there are always questions from the organization. When introducing the technology, we touch all kinds of processes and as a result, the organization is critically examined. In practice, we often see that the processes are not clear or do not appear to be logically structured. 

Technology, process, and organization cannot operate independently of each other. Approach this integrally, with the organization as the foundation, with processes and technology as the cornerstone on top. In order for technology to yield an optimal return, it is necessary that the underlying layers are well-designed and functioning. 

Bring the interests of IT and business together

As digital transformation comes higher up the agenda, alignment between IT and business becomes increasingly important. The wishes and interests of business and IT are often not the same. IT interests lie in areas such as continuity, stability, security, availability, and robustness. In many cases, the business wants to bring business value to the market as quickly and effectively as possible, which in turn has consequences for the IT landscape. That is why it's important to have a clear line of digital transformation and to share mutual interests. In this way understanding is cultivated and objectives can be achieved together. 

Accept mistakes

At various organizations change processes take a long time and sunk costs and the existing culture do not contribute to the acceptance of inevitable errors in digital transformation processes. To limit possible failure costs and achieve quick results, we recommend that the projects are as small as possible. Learn from the mistakes, and see the value of this. Practice shows that agile work processes and a learning mindset contribute strongly to accelerating and improving digital transformation.