As a provider of data entry and document scanning services, we help organizations eliminate manual document processes, and improve and simplify different business tasks. Technologically advanced document conversion solutions enable organizations to build their digital capabilities, leverage new opportunities, boost scalability and stability, and deliver excellent customer experiences. Digitization is the key to building long-term resilience and staying competitive amid disruption – such as that fuelled by the pandemic.
However, any kind of transformation is challenging. According to research by Mckinsey, the success rate for transformation efforts is less than 30%. The study found that success rates vary by industry and also by company size. Traditional industries such as oil and gas, automotive, infrastructure, and pharmaceuticals face more challenges than tech, media, and telecom. Organizations with fewer than 100 employees are more likely to succeed in digital transformation than those with more than 50,000 employees.
So what does it take to succeed in digital transformation? Let’s take a look at the key factors that hold the key to success.
- Capability building: Building digital capabilities is key for successful digital transformation. Competencies ranging from social, mobile, and analytics to the cloud, artificial intelligence (AI), blockchain, and the Internet of Things (IoT) – are essential to manage digital information and establish automated processes and online services. Organizations with successful transformations are more likely than others to invest in and use these sophisticated technologies, according to Mckinsey.
- Empowering employees: Organizations also need to acquire and incorporate talent with specialized technical skills to innovate, while involving all employees in building the new environment right from the start. Technology-led professionals can manage the digital transformation, develop talent and skills among co-workers, and integrate new digital methods into existing processes and ways of working. Studies have found a higher rate of success in digital transformation in organizations that set hiring goals based specific skill needs, and offer programs for leadership development and to build skills among employees in new ways of working.
- Leveraging data and analytics: There is a lot of valuable data out there, and using it fully is essential for digital transformation. Up to 62% of retailers have indicated that data and analytics have given them a competitive advantage, according to IBM. With the pandemic, data and analytics became even more important. Analytics provides insights about customers – their shopping behaviour, perceptions about brands, product preferences, platform or mobile app usage, and much more. These insights can help companies adapt to evolving customer behaviors and improve the shopping experience.
- Upgrading tools: Innovative and efficient tools are necessary to support digital transformation. These include, but are not limited to, communication tools, intranet platforms, customer relationship management (CRM) tools, project management tools, recruitment management tools, and digital accounting and payroll management tools. Organizations need to upgrade their existing tools and adopt new tools that are suitable for their unique needs and can help them work smarter and faster. A Forbes article references an MIT Sloan Management Review and Deloitte’s global study which points out that digital transformation is not just about technology – it’s about companies integrating technologies that allow them to change how they work. For instance, with the rise in remote work, businesses are adopting new technologies, such as cloud-based resources, and developing other tools and resources that power digital connection and collaboration. This is an ongoing process.
- Communication: Clear and smooth communication is a critical aspect of digital transformation. Employees tend to feel anxious about change, new systems, and technologies, especially when they impact day-to-day operations. According to MDM, a leading research, analytical and educational provider in wholesale distribution, digital transformation can succeed only if teams are well-informed about the change and how it will benefit them.
The report references a CNBC report to illustrate this: in 2018 several major companies such as Ford and GE invested $1.3 trillion in digital transformation, but about 70% of their investment was wasted as many of their initiatives failed. Poor change management and lack of communication were identified as two key reasons for the failure. The companies could not utilize their new tools and their investments went to waste as the management did not communicate to employees about why this change was essential and did not give them proper support needed for the transition.
- Leadership: This is probably the most important driver of the digital transformation process. Digital leadership is about fast-decision making and empowering and motivating employees to encourage participation, involvement and contribution. Leaders not only provide a clear mission statement but also assign responsibilities to teams for achieving the defined goals and sharing in the success. Good leaders build team spirit to push initiatives forward.
Digital transformation is important for every business to stay competitive in today’s fast-changing world, optimize internal resources, and deliver value to customers. As organizations focus on implementing digital strategies and emerging technologies, outsourced solutions such as data entry, data cleansing, and document conversion can help them optimize their operations and scale to meet customer needs faster and more efficiently.