How Digital Transformation Is Driving
Customer Experience

 

Digitally-savvy Customers Expect More

According to global market intelligence firm IDC, worldwide spending on Digital Transformation technologies reached $1.3 trillion in 2017; forecasted to surpass $2.1 trillion by 2021. Why so much? #DigitalTransformation is fundamentally enabling businesses to get closer to their customers and thereby accelerating achievement of their mission through innovative, digital solutions.

"Out of the companies who ignored work culture during digital transformation efforts, only 17% saw improved financial performance. But, 90% of companies that did focus on digital culture saw incredible financial performance. Additionally, 80% of companies that prioritized digital culture sustained breakthrough performance.”

- Boston Consulting Group (2018)

Given the scale and imperative of these technology investments – along with the workforce responsible for evaluating and deploying these modernization solutions – leading executives no longer view IT as a ‘cost of doing business.’ Investments in technology – and technology professionals – are now recognized as transformational assets that enable these organizational leaders to reimagine and redefine their business value, while simultaneously improving the customer experience with enhanced data analysis, and data-led change.

There is broad consensus that #DigitalTransformation is much more than simply enhancing your technology platforms. Organizations are developing a digital business strategy that includes modernizing the culture, redefining operating models, innovating product and service strategies and finally, developing and honing modern skills necessary to serve today’s digitally-savvy customers within a highly disruptive, technology-centric marketplace.

What Is Digital Transformation?

Investments in technology – and technology professionals – are now recognized as transformational assets that enable organizational leaders to reimagine and redefine their business value, while simultaneously improving the customer experience with enhanced data analysis, and data-led change.

Data Behind The Data

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Where to Start? Explore our training framework for a successful digital transformation.

View Digital Transformation Training Framework ›

 

Why Your Digital Transformation Needs A Digital Business Strategy

The purpose of a Digital Business Strategy is not to simply define the application of emerging technologies. Conversely, its purpose is to architect a revolutionary, data-driven design for improving the customer experience and mitigating disruptive threats to the enterprise. Aside from Amazon, Google, Uber and other known digital leaders, traditional companies are also successfully executing digital business strategies to reinvent themselves to remain relevant in this evolving digital economy –

  • Kaiser Permanente: 52% of their 100M patient visits are now virtual.
  • AIG: Implemented machine learning resulting in automation of >140,000 help desk tickets.
  • Home Depot: Created a digital retail channel; 7% increase in revenues without any new brick-n-mortar store openings.
  • GE: Integrated sensors in traditional products, now generating very beneficial data for its customers, and profits for GE; $6B in business line revenue, 20% growth from the prior year.
  • Everything But The House: Even “small business” is digitally transforming. This Ohio based auction company moved their estate auctions online and grew from $8M to $70M in less than 4-years.
  • Other Disruptive Companies: Check out these digital trailblazers – Disrupt100.

 

 

of c-suite executives expect digital to drive significant change or complete transformation in their industries.

- Workforce of the Future: Humanizing work through digital, Accenture (2018)

These initiatives are not isolated. According to Riverbed – a Gartner 2018 Magic Quadrant Leader – 77% of global decision-makers believe their businesses must actively invest in improving digital experiences in the coming years. Similarly, according to IDC, leading executives are forecasting that by 2020, 47% of revenues will be influenced by their #DigitalTransformation efforts.

These use cases and forecasts strongly validate the importance of fostering a #DigitalCulture across multiple departments and multiple teams, while developing vertical alignment throughout the leadership layers. According to most reports, #DigitalTransformation initiatives are most likely to fail when established organizations fail to assimilate to a #DigitalCulture, given the complexity of this transformation effort within legacy operating models.

 

 

5 Major Phases for Fostering a Digital Culture

Culture is the undercurrent of an organization. It provides the freedom to high-performing employees to make decisions confidently that help advance organizational strategy. Modernizing an organization’s culture to a #DigitalCulture is creating profound results in how organizations develop agility, attract talent, increase employee engagement, and deliver improved user experiences; faster. A #DigitalCulture will complement, augment, or reinvent an existing culture by accentuating focus on customer experience, digitized operating models, and an optimized workforce.

Implement a Digital Business Strategy

Similar to other strategic plans, the key to a Digital Business Strategy is to empower your employees and the marketplace with a clear and thorough plan for delivering quantifiable business results – expanded value creation, improved customer experience, and a workplace that attracts key talent. Minimally, the Digital Business Strategy must include details about organizational leadership, capabilities and expectations of the workforce, redefining customer engagement, tools and technology modernization, and a formal communication and change management framework. This crucial phase will help establish the vision for change.

Engage the Entire Organization

Jeff Bezos, CEO, Amazon, discussing #DigitalTransformation stated, “In today’s era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility; that’s it. Because nothing else is sustainable, everything else you create, somebody else will replicate.” The entire organization must be rowing in the same direction, at the same pace and with the same enthusiasm to create and sustain a #DigitalCulture capable of delivering products and services that meet the high, and constantly evolving, expectations of today’s consumers.

Target Specific Improvements & Technology Upgrades

Wholesale changes to an organization will inevitably fail given the reluctance to change within a culture and the confusion that a transformation of this magnitude will unveil. Once the Digital Business Strategy has been formalized, and the team is accountable for its execution, select some key priorities that align with the Digital Business Strategy that will yield quick wins to further reinforce adoption and engagement. In parallel, evaluate existing and emerging technologies – web tools, mobility solutions, big data analytics, blockchain, AI platforms – that will enhance and accelerate a digitized operating model.

Proactively Address Resistance

#DigitalTransformation initiatives are journeys that will force several culturally-sensitive decisions about existing departments, technology, and people. Proactively addressing these concerns and decisions are essential for a successful implementation. Contracting with coaches and transformational experts to support key employees and early adopters will help an organization more seamlessly navigate through the challenging implementation efforts. Coaches will help keep a focus on transformational outcomes, mitigate the common emotional responses, and deliver confidence to the team when it most requires it.

Implement a Learning Culture

Digital literacy is key in creating an effective and sustainable #DigitalCulture. The Digital Business Strategy should clearly define how employees and leadership will continually cultivate digital literacy as part of an ongoing learning culture – a multi-faceted approach that provides continual learning opportunities on-the-job, through mentors, in the classroom or via digital learning assets. Creating digital literacy will empower employees to think analytically, purposefully, and confidently during the transitions from an existing operating model to a modern model that more effectively serves digitally-savvy consumers.

 

8 Key Areas of Technology-Enabled Digital Transformation

#DigitalTransformation is a business initiative that seeks to enhance end-user experiences with modern technologies, tools and operating models. Most organizations are adopting several technology strategies, depending upon the desired business outcome, or expected customer experience. Learning Tree International has identified some of the typical technologies, and its purpose, associated with #DigitalTransformation efforts.

  1. Web Technologies – Basic tools used to conduct web development and improve user interface.
  1. Artificial Intelligence – Computer systems that perform tasks that normally require human intervention, such as audio or visual recognition, decision-making, and language translation.
  1. Machine Learning – Machine learning is an element of artificial intelligence that employs statistical techniques that allows computers to dynamically learn from data, without the requirement of programming.
  1. Chatbots – Computer programs that simulate conversations with customers over the Internet, or via phone conversations.
  1. Internet of Things – Networked devices embedded within common consumer products – cars, electronics and home appliances – that send and receive data via sensors.
  1. Cloud (SaaS) Migration – A common strategy to consolidate hardware expenses, improve operational performance and streamline administration, while delivering improved functionality and user experience.
  1. Big Data & Analytics – Resulting from a desire to overhaul and improve data analysis from existing business intelligence, CRM, social media channels, and other customer data sources.
  1. Cyber Security & Blockchain – Building and maintaining customer confidence is critical in a #DigitalTransformation. Implementing a modern security architecture, and the use of capabilities such as blockchain enable improved information-sharing within modern businesses.

 

 

 

 

 

 

 

Digital Transformation is a Business Initiative to Serve Today’s Digitally-Savvy Customers Within a Highly Disruptive, Technology-Centric Marketplace

Explore our interactive #DigitalTransformation Training Framework below:

 

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Directly Involved in a #DigitalTransformation to Revolutionize the #CustomerExperience?

Contact Learning Tree – a global leader in supporting organizations to gain the right skills, for the right people for any phase of #DigitalTransformation initiative. We’ll get you in touch with our team of expert Digital consultants who are qualified to listen, learn and support your workforce development needs as a critical component of your transformation initiative.

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