What is a Digital Transformation Strategy?

A digital transformation strategy refers to a plan of action that strategically outlines how a business can position itself in the digital economy.

Digital transformation typically involves the use of technology to complete tasks that were once manual and time-consuming. The issue is that businesses have used technology to better deliver their services or products since the beginning of commerce, so what makes a strategy transformational? 

When it comes to digital transformation in the creative or marketing industries, this is often discussed through a digital marketing or user experience lens. The idea is that customers are able to use technology to research and select services or products to match their individual needs. 

Digital transformation doesn’t just come down to building online touchpoints. It should also provide an opportunity to completely reshape a business and align operating models with new-age business models. By infusing your business model with digital technology, you are able to reduce operating costs while increasing profit significantly. 

Developing a digital transformation strategy is completely different to a business-as-usual strategy, it is about setting out a plan of action to completely transform your business model, from consumer engagement to employee engagement. 

Creating a Digital Transformation Strategy

Before we dive into the concept of digital transformation strategy, let’s take a look at the term “strategy” and how it is defined in the context of business. 

In 1996 Michael Porter, a renowned Harvard Professor, wrote an article discussing the definition of “strategy.” In his article, Porter argued that operational effectiveness, though necessary for performance, is not enough as operational effectiveness can be copied from person to person or business to business. 

Essentially, strategy is not just a set of goals or objectives that needs to be achieved. It is about putting together a plan that is designed based on unique conditions that set a business apart from its competitors and results in profitability and business growth. 

According to Richard Rumelt, author of the highly acclaimed “Kernel of Good Strategy” states that good strategy can be created based on 3 critical components:

• Diagnosis: When you begin putting together your strategy you need to have a complete understanding of the situation and articulate the problem and challenges that need to be addressed through your strategy. In regards to digital transformation strategy: What elements of your business are experience backlog, what opportunities are being missed and where is there any miscommunication between teams and clients?

• Guiding Policy: This is a method for solving the diagnosed problems and this policy needs to rule out actions and direct strategy to required actions. In regards to digital transformation, what tools are available to streamline processes and amend any issues you are struggling with as a business? 

• Coherent Plan of Action: This consists of practical and coordinated activities that need to be implemented. Each action should help the other and create a streamlined effect and keep the flywheel turning. In regards to digital transformation you need to choose which platforms you want to use, how you want to use these platforms and create a game plan to implement these elements across your business and departments. 

When it comes to strategy you don’t want to skip any of these steps. Strategy is about diagnosing your problem, guiding your way forward and implementing a plan of action that will amend your problems and drive your business forward.

And if you are looking to drive your business into 2021, then you need to consider a digital transformation strategy for your business. 

Digital Transformation Strategy for 2021

Today, the digital economy is thriving and customers and suppliers have more expectations than ever before. Essentially, anything that can be digitised should be digitised. However, it is not just about digitising your services and products - it’s about digitising your entire business model to ensure optimal results. Many businesses approach this by creating a to-do strategy that includes operational plans and resource plans regarding digital technology. However, this is not the core of digital transformation strategy. 

Your digital transformation strategy needs to be a plan of action that can help reposition your business in the digital climate. It comes down to data capturing which allows you to find greater opportunities more easily than before. You need to create a business that leverages emerging technology, data and tools to find new opportunities with greater skill and targeting than that of your competitors - and this is what digital transformation is all about. 

So, where do you begin with your digital transformation strategy?

3 Steps to Launching Digital Transformation Across your Organisation

1. Strategy

Strategy is the starting point to digitally transforming your business. It is the first part of the transformation - but not the entire transformation. You see, having a strong strategy and the right technology to implement it is great, but this is digitising your business - not transforming your organisation. 

Your digital transformation strategy should be created by a team that has a digital mindset. These kinds of individuals will help bridge the gap between a traditional business mindset and the digital age. This kind of thinking is vital and the individuals who contribute to your strategy should speak to your sales, marketing and service departments to discover what problems need to be solved within the business. And this is when communication becomes important…

2. Communication

Creating a digital transformation strategy comes down to communication and your internal teams need to be on the same page - this is how transformation works - from within. 

As mentioned above, sit down with your team members and departments and discuss what manual tasks they are spending too much time on, what is falling through the cracks and what technology is able to assist them in amending these issues. Is there a disconnect between marketing and sales? Where is this disconnect coming from? What technology is able to bridge this gap? 

By having an open and honest conversation internally, you are able to pinpoint specific areas that require help and create a strategy to fix these issues and help your business grow better.

It is also vital that you educate everyone within your business about your digital transformation goals. For example: create a short video outlining what it is you are implementing and why you are rolling this out across the company. This makes your teams feel a part of the evolution as opposed to simple cogs in a machine.

Digital transformation is a journey and you need to provide your teams with leadership and support through this time to ensure greater success. 

3. Technology

What is digital transformation without technology? Technology is what enables new business models and greater business growth. Business leaders and managers may not work in the technological field but they are expected to understand the capabilities that these new technologies offer. 

Digital Transformation is not a one size fits all business model. It varies depending on a businesses specific needs, challenges and goals. However, digital transformation efforts can be placed in the below categories:

• Operational Agility

• Customer Experience

• Leadership and Culture

• Workforce Enablement
• Digital technology Integration 

While each of the above digital transformation goals has its own tools, Customer Relationship Management tools are able to deliver on all of the above goals. 

Customer Relationship Management software has quickly become the most sought after digital strategy for developing, retaining and acquiring customers. Essentially, the goal of this software is to improve marketing, nurture potential and current customer relationships, and drive sales growth. 

At its core a CRM should ensure that every interaction between a business and consumer is smooth and efficient, which in turn increases overall business profit and provides long-term value.

The Benefits of a strong CRM: 

• Data Collection: A strong CRM compiles and stores in-depth customer data from a variety of channels, or points of contact, between the lead/customer and a business. A powerful CRM can compile this lead information from a variety of touch points including a company’s website, live chat, email, marketing materials, social networks and telephonic conversations. 
• Understanding the Buying Cycle: Having in depth customer information such as data regarding past purchases and online interactions, helps customer support representatives provide greater service, and helps the sales team understand buyer intent.
• Marketing and Sales Alignment: A CRM is also able to launch and analyse marketing campaigns, and provide greater insight into audience behaviour and trends through reporting features. This helps marketing and sales teams better understand what the audience is looking for, what is working and what messaging best suits a specific lead.
• Marketing Automation: A CRM provides sales and marketing automation software that ensures your leads receive communication from your business that is triggered based on specific actions. This tactic cultivates personalised relationships with high quality leads and has the power to convert them into clients. 
• Data Driven Sales Insights: As a CRM stores all the data your marketing and sales team will need, it streamlines all processes from a single place - making for greater sales and business growth. 

This kind of digital transformation technology is becoming a necessity for businesses (no matter size or sector) as it provides a single location to store all customer data and lead information and is also designed to monitor sales processes, and track overall business performance. 

The demand for CRM's has seen hundreds of solutions pop up on the market. It is important that business leaders, managers and IT professionals do the relevant research when selecting the CRM platform for their business as many of these platforms do not offer the tools you need for specific business goals and objectives. Some CRMs are exclusively designed for smaller businesses and start-ups, while others are designed specifically for large corporations and big businesses. 

The key is to find a CRM that is able to scale with your business and grow with your team. And the HubSpot is the CRM that is designed to do just that...

How we can help you

As DXG, we offer the entire suite of HubSpot CRM solutions. HubSpot is a world renowned all-in-one marketing, sales, and service software that offers tools to help your business grow and transform for the digital era. The software provides a central location for your Search Engine Optimisation, social media, content creation, marketing automation, lead generation, audience segmentation, and more, and is transforming the way the world does business. 

From implementing the HubSpot CMS and CRM systems to training your teams, we transform organisations and adapt HubSpot to suit your business goals. Whether your focus is generating leads, accelerating sales or developing a powerful website, we offer the complete range of HubSpot services to meet your needs. Together, we build your custom digital transformation strategy solution. Get in touch with one our Digital Strategy Experts to find out more.

Explore digital transformation and why businesses in all industries and of every size are getting on board in our guide, "How to transform your business for HubSpot"

Get in touch with one our Digital Strategy Experts to find out more.