Not every organization can perfectly integrate digital transformation. Nevertheless, for many companies, dropping actual processes is a necessity. The 2019 State of the CIO report notes that forty percent of investments are going into technology. Despite this, there are no guarantees that your transformation projects will succeed.
You want to ensure that your strategy is completely aligned with the execution. You also want to leverage new technologies and digital platforms because that’s what innovation requires. McKinsey notes, however, that less than thirty percent of these initiatives succeed. You would rather not be a negative statistic. A digital transformation can and will run smoothly.
How To Successfully Implement A Digital Transformation Journey
There are several simple guidelines that any firm can follow, regardless of their industry or specialty, to have a successful digital transformation. Not all of them require tech; you need to get people involved with the plan and be sure they keep being aligned.
1. Conduct Your Research On Digital Transformation Initiatives
This is basic common sense; the Internet is always the first source, but as we know, sometimes it is not accurate what we find. For example, if you are looking for specific technologies and case studies you can probably find an overall idea. But is very hard to understand how you can apply this for your business. A solution can be to reach out to tech vendors to see the technology and software that are available, and research what may come out in a few years. Technology trends run on an exponential level, where what seems farfetched now is more than possible in a decade. Smartphones were one such example.
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2. Determine Your Specific Digital Transformation Goals
No one firm will have a cookie-cutter solution to digital transformation. You can’t just take a program or process and decide that you’re done. Instead, you need to assess your current problems with records and data, but more than that you need to know where you want to go.
What are your specific goals? By this, we want to know if you desire increasing profit, reducing costs, opening new markets, designing new digital products and services or such. How do you want to organize data and use it within an organization? What is your budget and what would you consider a return on the investment you put in for technology? When you answer these questions, then you can choose your tools.
Let’s say that you are a mortgage firm that is going digital. You started digitalizing documents years ago but see that new generations don’t like the idea of sending you documents by email. The sales cycle is becoming longer and your internal resources are overwhelmed between new regulations and manual tasks. Imagine if you can have a digital system where applicants can fill out online forms instead of documents, cutting several emails back and forth, phone calls to review and check information.
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3. Make Your Digital Initiatives A Team Effort
Despite what the name may entail, digital transformation also involves having humans within the implementation stage. That means making the transition with everyone onboard, from the highest tiers of management to the lower one. You need effective leadership so that employees can implement transformation efforts successfully.
For employees who are entry-level, train them readily in these programs. Get them to see the benefits of these programs. Involvement is key, McKinsey asserts, to ensure they develop muscle memory and emotional investment. Keep communications open so that employees can get answers to all of their questions and know the purpose of these new developments. Provide rewards for those who complete training fast.
Upper management may need other incentives to make such an investment. If possible, hire a Chief Digital Officer (CDO) who can assist everyone with the transition and have your CFO explain the tangible benefits to your board of directors. The investments need to translate into tangible numbers for the long-term. While you need managers and entry-level employees, you obviously want everyone in higher employment tiers to agree to these terms.
4. Assess Your Current Strengths And Weaknesses With Technology
How would you define the technology level of your company? Are you leveraging new tools and technologies like Artificial Intelligence, Blockchain, Process Automation, and so on? When was the last time that you updated your computers and devices? Did you implement a work from the home strategy with an adequate level of IT Security?
Not all technology needs to be scrapped necessarily. Assess what you can still use with new programs and what are your core competencies. This would be called your tech stack. The tech stack can include the current servers, computers, devices, and software that you use. The goal is to benefit your employees so that they can do work better.
On the other side of the coin, you can see what deficits you can fill with technology, and how to complement current strengths. Do your employees have trouble finding information? Did you ever considered that implementing new software can open a risk for your IT Security?? Do you have a team that can take care of the help-desk activities or you need to find an outsourcer?
If you are looking to automate your processes and need support to evaluate what is the suitable technology for you, we can help!
5. Prepare For Constant Adjustments And A Long Haul
You may have the seemingly perfect digital transformation project and vision. Does that mean all of your problems are over? Far from it; in fact, adapting to new technology can have its own set of learning curves.
Not only it takes time to implement a new transformation, but also, o system is perfect, and the demands for your business may change for external or internal situations that you cannot control now. Additionally, consider how loan regulations, for example, can vary depending on the years in question.
You may have a year where the government introduces new regulations, as one example. The software you have for processing loans now needs to handle that. Fortune has warned that the government will let the GSE patch expire in January 2021. The GSE patch provides liability protection and thus is important. Have software that will take the expirations into account for loan processing.
Constantly test your new processes and technologies over the years, and expect results to trickle in slowly.
→ 6 Reasons Why Digital Transformation Strategies Fail
Refine Your Digital Tools With Virtus Flow
Virtus Flow is ready to help you enter the digital realm. With our Intelligent Automation, your institution will be on top of changing processes and keeping them aligned with your vision. We want to ensure that businesses can make the transition with ease, and proper knowledge of a new digital world.
Reach out to us to talk with one of our Digital Transformation experts. The world is changing, and you want to be ahead of the curve regarding your competitors and technology.
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