The digital transformation framework has four main components, which are customer relations, processes & systems, products & services, and organization.
- Digitizing Customer Experience: In order to maximize customer satisfaction and life-time revenue from a customer, companies are collecting data of customers and providing personalized products to individuals. Customers expect to engage with the company 24/7 from all available channels; omnichannel interaction and services are the key for successful digital transformation.
- Digitizing Products & Services: Companies need to focus on selling to customers a journey rather than the product. This can only happen if companies insert a digital tag that enables them to analyze customer behavior and lets to interact with customers. For example, a digitized wallet which counts the cash in the wallet then, if necessary, alerts individuals’ phone if they want to go ATM.
- Digitizing Operations: Automating operational processes make organizations cost-efficient and more agile. Agility is an essential characteristic for a firm because increasing competitiveness in the market obligates organizations to act quicker.
- Digitizing Organization: Companies need to achieve a new organizational model which involves human and machine together. Labor force should transfer into processes that are about designing, auditing, and innovating rather than operating processes. A culture that is open to change and prioritize improvement is an essential driver to evolve through digital. Organizations should encourage innovations so that new technical capabilities can be implemented to help employees adopt the digital world and gain the skills and knowledge they require to transform.
For more on digital transformation, feel free to read our article on the topic to be published next week.