What does digital transformation mean today? It’s a big initiative that brings digital technology into every part of a business. Companies that modernize stay competitive and meet customer needs in a tech-driven world.
According to McKinsey research, an estimated 90 percent of all organizations are currently undergoing some form of digital transformation. However, making this shift isn’t easy. It takes a commitment to rethink and update processes, products, operations, and technology. A culture of adaptation and experimentation is also needed.
Learn more about digital transformation, what it takes to succeed, and how a strategic BPO partner can speed up and improve the process.
Defining Digital Transformation
Digital transformation is more than a buzzword. It’s not only about providing employees with new gadgets or incorporating chatbots. It’s about integrating digital technology into all areas of a business. This leads to better efficiency, lower costs, and improved customer experience.
The main driver is the need to remain competitive. Businesses must stay current with market trends. They need to launch products quickly. Meeting customer expectations is key, and they must also adapt to supply chain disruptions.
A successful digital transformation can change how a business operates. It improves customer experience, flexibility, company culture, leadership, and workforce skills.
When a business undergoes digital transformation, it prepares itself for long-term success. Take Netflix, for example. It started as a DVD rental service. Then, it became a streaming platform when internet speeds got better. This change helped it outpace rivals and become the top provider of digital video content globally.
Obstacles on the Path to Transformation
Getting past the vision of digital transformation to the execution is filled with obstacles.
Studies have shown that 70% of digital transformations fail. According to analysts and tech experts, the main reasons for this include:
- Lack of organizational alignment and clear goals
- Misunderstanding the role of technology and its usage
- Not having a suitable digital transformation team
Lack of Alignment
A big challenge for companies in digital transformation is not having a shared vision. They also struggle to prioritize changes effectively.
Everyone, from the board to the CEO to junior staff, must be on the same page and understand the process. A solid plan and clear priorities are essential. This focuses people and money on the areas that will have the biggest impact first.
Employees also need to be adaptable and innovative. They should help develop new processes that focus on efficiency and collaboration. Without this, many issues will persist, even with investment in change.
One well-known instance of a digital transformation failure is from Ford Motor Company and its “Smart Mobility” subsidiary in 2016. The idea was to build digitally enhanced cars with more features and mobility. However, the Smart Mobility group was seen as independent of the company rather than part of the whole. Instead of leading the carmaker to enormous success, the endeavor cost the company hundreds of millions of dollars in 2017 and led to the CEO’s resignation soon after.
For digital transformation to work, everyone must be involved. The whole company should know about the change and collaborate to achieve success.
Misunderstanding Technology and Needs
Technology is key in digital transformation. To maximize its benefits, understand your company’s needs, goals, and current systems. This will help you pinpoint where to direct your efforts.
If your company has used legacy systems for years, you may find it hard to connect them with new tools. Upgrading to compatible solutions might cost more. However, it’s smarter than using systems that don’t connect properly.
It’s essential to know the tools you want to adopt and your goals for them. Digital transformation should strengthen your teams and enhance workflows. This will help you serve clients more effectively. It’s not just about letting technology do all the work.
Cybersecurity brings its own challenges. Every company faces the risk of cyberattacks. You should create new programs and procedures to keep your data safe. This is especially important during system migrations.
Having The Right Team
A crucial element in the success of digital transformation is having the right talent in place. This talent includes key leaders like the Chief Technology Officer (CTO) and the Chief Digital Officer (CDO). It also includes lead data scientists who drive the transformation.
The right CTO or CDO is essential in setting the tone for the rest of the team. They must be able to evaluate the capabilities of the in-house talent and identify any gaps in technical skills and aptitude. They also need the power to close these gaps by hiring strategically or outsourcing.
Trying to shortcut the transformation by not investing in the right people can doom efforts before they get started.
Strategic BPO Partnerships: An Untapped Accelerator
A smart way to enhance digital transformation is by forming a strategic BPO partnership. BPO firms vary in type and specialty, including technology transformation services.
Think of BPO relationships as lasting partnerships. Team up with a skilled technical BPO for better long-term benefits. They are your partner in innovation and collaboration. They assess your needs, prioritize tasks, and create new processes. This helps your organization thrive.
Firms with industry-specific knowledge can help you quickly adopt emerging technologies. They use proven methods to make implementation easier. They can quickly spot problems and suggest changes. Their expertise also helps ensure regulatory compliance.
A strategic BPO partner can be cost-effective, too. With top talent and advanced tools like AI, automation, and analytics ready to go, they can scale according to your needs. This approach minimizes the risk of significant upfront investments in talent and technology.
Selecting the Right BPO Partner
Choosing the right BPO partner is crucial to your success. You need a partner who matches your company culture.
They should have a teamwork spirit and feel like part of your team. They should also have a proven track record of success and innovation. Other key factors to consider include:
- The ability to quickly scale and adapt
- Transparency, trust, and open communication
- Alignment with your strategic business goals
Accelergent Growth Solutions can be your preferred strategic BPO partner – aligning with your goals, analyzing your needs, and delivering results that will have long-lasting success. Our highly skilled and experienced team is ready to help you unleash your potential and accelerate your digital transformation. Contact us today!