Digital transformation (DX) is a major challenge and opportunity for businesses. Even though executives are willing to apply digital transformation to the organization, in-house teams may not have the experience or time to achieve this objective. Digital Transformation Consultants can help the organization overcome the challenge by establishing a digital strategy and implementing digital technology across the enterprise.
We’ve written before about digital transformation, feel free to read that as an intro to the topic.
What is Digital Transformation Consulting?
Digital Transformation Consultancy is a service that helps companies formulate their digital transformation strategy and implement it to enhance their performance through digital technologies. Digital Transformation Consultants (DTC) analyze the company’s tech infrastructure, processes, people and organization to both strengthen the organization’s short-term performance and maintain sustainable long-term improvement.
DTCs generally provide services in these broad areas:
- Formulating a digital transformation strategy and roadmap including both short term, high ROI initiatives (i.e. low-hanging fruits) and long term initiatives
- Implementing digital technologies to diminish the manual workload of organizations to
- reduce costs
- Increasing process effectiveness (e.g. reduced error rates)
- increase employee satisfaction by reducing dull work
- enabling faster responses to clients.
- Building digital products to allow the company to expand into new businesses or new channels
- Outlining necessary changes to people and processes to enable and sustain the digital transformation
Why is Digital Transformation Consulting important now?
In order to understand the relevance of DTC, first, you need to recognize the importance of Digital Transformation.
The world is shifting through digitization and technology. However, organizations are lacking either awareness, expertise or the manpower to complete their digital transformation. DTCs provide knowledge and experience to businesses so that they ensure that digital technologies and strategies of the company are connected.
How do consultants add value to digital transformation projects?
Consultants add value via their additional manpower, global expertise from working with hundreds of companies on similar topics and outsider perspective. This is also the case in digital transformation.
It is expensive and difficult to attract digital experts to your company. Consulting companies have been improving their digital workforce via acquisitions. Expertise is a valuable asset in most digital transformation projects. Consultants should have seen processes being automated with various technologies through their work in many client engagements. For example, they should be able to point you to the most effective automation solution for your accounts payable process based on their experience with hundreds of clients.
Outsider’s perspective is crucial in organization related projects. And since organization is a key part of the digital transformation, consultants can add value with their outsider’s perspective.
Finally, companies tend to be afraid of consultants sharing their strategy and secrets with competitors as consultants share their experiences within their consulting organization. While this is a concern for strategic projects, it should not be a concern with digital transformation projects. All companies are doing their best to digitize and automate their processes, therefore, in most cases, there are not many company-specific secrets involved in these projects.
How to choose a Digital Transformation implementation partner?
The success of the project will be mostly dependent on choosing the right digital transformation consultant. Here are a few critical criteria for evaluating digital transformation implementation partners. We sorted them from higher to lower priority:
- Since consultants add value with their expertise, it is important to make sure that they have the relevant expertise for your project. For example, a digital transformation company that focuses on back-office automation may not be a good fit for your company if your priority is to boost digital sales. Companies need to analyze consultants’ previous projects to see that they have the right
- Technical expertise
- Process-specific expertise
- Industry-specific expertise.
- Though the expertise of the consulting company is important, individual consultants are the ones that get the job done. Companies should review CVs of individual consultants to ensure that these individuals have the necessary expertise.
- Finally, the best consultants are the ones that can objectively assess the technologies that will be implemented. Companies need to understand that consultants that work as part of a tech vendor will be biased towards that vendor’s solutions
What are digital transformation strategy companies?
Emerging digital transformation companies with innovative approaches
There is a new category of consultants that rely on your company’s data to suggest which areas your company should focus on.
Bandwitt is an emerging consultancy that works with local Fortune 500 as well as SMEs to help them identify areas of digitalization and select digitalization partners.
Founded by BCG alumni, Faethm.ai works with Fortune 500 and governmental organizations and benchmarks their data to identify areas of digital transformation they should invest in.
Established digital transformation companies
Here is a list of consulting companies with more than 5,000 employees that offer end-to-end digital transformation services:
- A.T. Kearney
- Atkins Global
- DXC Technology
- McKinsey&Quantum Black
- NTT Data
- Tata Consultancy Services (TCS)
If you are interested in AI transformation, which is the next step of digital transformation, feel free to check our article about it.
If you have questions about how digital transformation consultants can help your business, we can help: