Digital transformation is the customer-driven process of radically changing the way you do business by integrating digital technology into all areas of your organization.
As the world becomes more and more digital, today’s businesses need to rethink their processes to meet increasing customer expectations and stay ahead of the competition.
Digital companies are more flexible and can adapt to changing market trends faster. Not to mention it is much easier for them to scale their operations.
Although the opportunities it creates are many, some businesses find digital transformation very challenging. After all, completely transforming your business is no easy task.
Therefore, we’ve put together this article to help companies with their digital transformation journey.
|Why is digital transformation crucial for businesses?|
|What drives digital transformation?|
|6 steps to a successful digital transformation strategy
|How can Penneo help you kick-start your digital transformation journey?|
Why is digital transformation crucial for businesses?
Today’s consumers expect personalized experiences, convenience, and above all – digital interactions.
With so many different products and services to choose from, customers can quickly switch to other brands and providers if the ones they currently use don’t live up to their expectations.
As a result, companies that don’t keep up with the times and refuse to change will eventually lose their business and be forced to close their doors.
On the other hand, companies that embrace digital transformation will reap its many rewards, such as:
- improved business agility
- new revenue streams
- increased efficiency
- better customer experience
- happier employees
What drives digital transformation?
Besides customer expectations, several other factors are accelerating digital transformation nowadays.
Business process automation, artificial intelligence, cloud computing, and business intelligence are some of the most important drivers of digital transformation. Such technologies help companies become more efficient and profitable and create exceptional customer experiences.
Intense competition due to globalization
In most markets, competition is fiercer than ever, and brand loyalty is steadily declining. Thanks to globalization, today’s customers have easy access to more goods and services than ever before.
To survive in this highly competitive environment, companies need to evolve and find new ways to differentiate themselves from competitors.
Unexpected challenges and events
In an ever-changing world, businesses must quickly respond and adapt to challenges.
The COVID-19 pandemic was an unprecedented shock to businesses everywhere.
However, digital companies have quickly adapted to the new market conditions. They started working from home almost immediately and came up with innovative ways to deliver value to homebound customers. All thanks to their businesses processes and culture already being digital.
On the other hand, companies that still used legacy systems and relied on outdated processes had a much harder time adapting. Some had to suspend their activities and regroup, while others went out of business.
Higher expectations of top talent
Attracting and retaining top talent has become a very challenging task.
Candidates get more offers than ever, so their expectations from potential employers are also higher than before.
Today’s top talent wants to work for companies that embrace digital business transformation and encourage innovative thinking. That’s because working for digital companies allows them to focus on value-creating activities rather than tedious administrative tasks.
Governments and regulators
Governments and regulators play an important role in driving digital transformation by developing policies that encourage a digital future.
Such an example is the ESEF Regulation. This regulation introduces a new mandatory digital format for the annual financial reports of issuers with securities listed on EU-regulated markets.
6 steps to a successful digital transformation strategy
A digital transformation strategy is a plan of action to better meet customers’ needs by improving business operations with the help of digital technologies.
The lack of a clearly defined strategy is one of the most common barriers to digital business transformation. Therefore, we have put together a simple 6-step framework to help you start your transformation journey.
1. Start with the why
The first step is to identify the problems you want to solve and clearly define your strategic objectives.
Ask yourself why your company needs digital transformation. Is it because you want to expand your business? Is it about keeping up with competitors? Or maybe you just want to improve overall efficiency.
Successful digital transformation starts with strategic objectives, not technology. Knowing what you want to achieve will help you only implement changes that support your vision.
2. Create and foster a digital culture
Digital transformation goes beyond the mere digitalization of processes and requires changes across the entire organization, including the company culture.
People often resist change because they fear the unknown. That’s why many are still reluctant about using automation tools, even though these solutions could reduce their workload and save them time. After all, better the devil you know than the devil you don’t.
Communication is crucial to reshaping your company culture. Sharing the digital transformation vision with everyone in the company gives employees an idea of what to expect. Understanding the business value of becoming a digital company makes employees more likely to embrace it.
Team leaders should also invite each team member to one-on-one meetings to discuss how digital transformation will impact them.
- How will digital transformation simplify and improve their work?
- What will be the impact on the employee’s workflows? Will they have to start using a new digital solution?
- What is the new solution, and how can they integrate it into their workflows?
Listen to their concerns, feedback, and ideas and use them to steer digital transformation initiatives in the right direction.
Also, don’t forget to provide new software onboarding for all your employees to teach them how to use new solutions. Continuous support should also be available until they feel comfortable working with these tools. And last but not least, lead by example.
3. Map and analyze your current business processes
Mapping and analyzing existing business processes will help you identify inefficiencies and opportunities for improvement. But digital transformation is an ongoing process, so don’t try to tackle all the problems at once.
Instead, start with a few impactful and concrete initiatives that will show measurable results within the first few months.
4. Invest in the right digital solutions
Clear objectives are the cornerstone of digital transformation. Whether you want to work more efficiently or generate more value, the digital solutions you implement should always support your strategic objectives.
But technology alone is not enough. You’ll also have to redesign your operating processes to get the most out of the new technologies and start creating business value.
5. Build strategic partnerships
As technology becomes more sophisticated, businesses that go it alone will eventually fall behind. Only by building strategic partnerships can they keep growing and maintain their competitive advantage.
The right partnerships can help both companies access new markets, benefit from their partner’s complementary skills, and stand out from the competition.
Strategic partners should share your values and be highly skilled and knowledgeable in areas outside of your expertise.
Having partners that can help you enhance customer value and accelerate growth is critical for successful digital transformation.
6. Focus on continuous improvement
Reach out to customers, partners, employees, and other relevant stakeholders to ask for their feedback. Use their feedback to identify areas for improvement and opportunities to scale.
Digital transformation is not a one-time event. Businesses need to continuously transform to create new value, stay competitive, and thrive in the digital age.
How can Penneo help you kick-start your digital transformation journey?
Are you looking to embark on a digital transformation journey? Here’s how our two solutions can help.
Does your business deal with documents, such as contracts, agreements, financial statements, etc.? Then, investing in a cloud-based digital signing solution can be a simple but strategic first step to digital transformation.
Penneo Sign allows you to automate signing processes with the help of predefined rules. You decide who should sign, what documents each person needs to sign, and in which order. Plus, all the signed documents are saved in your archive and stored in compliance with the GDPR.
Automating document-based processes reduces admin work and allows your employees to focus on value-adding activities instead. It also eliminates the costs associated with paper supplies, document storage, printing, scanning, and mailing.
Are you looking to optimize customer due diligence and risk assessment? Then, Penneo KYC is the tool for you.
Besides providing a frictionless experience for your clients, Penneo KYC can also help you save valuable time and better protect personal data.
With Penneo KYC, you can automate:
- PEP and sanctions screenings
- Identification of beneficial owners
- Data deletion following GDPR/AML requirements
Our solution uses encryption to protect both data in transit and at rest. Hence, you don’t have to worry about your clients’ data ending up in the wrong hands.
Automating KYC verification frees employees from tedious tasks, allowing them to spend more time advising clients.