Digital Transformation & Value Creation

I think it is becoming overwhelmingly clear that we are truly in the digital age. Remember the internet of things phenomenon? Everything is being digitalized, stored and used within the digital space. What does this mean to us as individuals and business people?

Let’s set the stage by providing a simple definition on the subject. “Digital transformation is the use of any digital technology to provide better products, services and experiences” – Brian Solis. Would you say this definition is simple enough? Can you identify with this definition or do you have a simpler one? I definitely can identify with it both as an individual and a business leader. Recently I developed and facilitated a workshop themed ‘TO DELIVER A BOLD NEW DIGITAL WORLD THROUGH INNOVATION’. One of the objectives of the workshop was to provide participants with a personal understanding of the digital phenomenon. This is so critical for anyone or organisation that wants to play in the digital space. You have to understand its implications to get a clear idea about how to play in the digital space, sell digital products and develop a road map of how to get the channel members accept the imperatives of the emerging business. This is particularly important in the African business space where a lot of people are still unfamiliar with digital technology.

Margins are narrowing and traditional income streams are fast disappearing. We have to hasten the business to take advantage of new opportunities. To hasten, we have to move with the time. A lot is happening in the digital space and we have to position properly to benefit from it and possibly lead in the market. This will require a change in the way we do things.  It is becoming inevitable for us to develop revenue streams from digital channels beyond traditional channels, appreciating the needs of the diverse customer groups. We have to be intentional to leverage existing platforms e.g. social media, e- commerce sites to mine data that can provide us with insights on how to offer relevant solutions to our customers. We need a good understanding of the digital world and its transformational processes to succeed in this new shift.

A client once said “Yes, we want to go digital but what does it mean?” Does this sound familiar to you? We hear this all the time. So let me attempt to explain what going digital means. It is about technology. It is a new channel to engage with customers, it represents an entirely new way of doing business. It’s about creating value; it’s about the series of core processes that implement a vision around customer experiences. It’s about the foundational capabilities that support the entire structure. It is about re-examining the entire way of doing business and understanding where the new frontiers of values are. Finally, it’s about implementing a cyclical dynamics in which processes and capabilities constantly evolve based on inputs from the customer and having a foundation that will ensure consistent delivery of value through time.

These are indeed a lot but if we think about it deeply, we will identify with it and locate ourselves and businesses where we are currently and plan for the future accordingly. The mistake that we make at times is to get into a new movement like this without being intentional about it. What do I mean? We ought to have a clear strategy to go digital and this call for three main things: define your digital strategy, appoint digital leaders and integrate the systems.

Successful digital transformation requires the collaboration of the entire system or workforce, from the top to the bottom. Yes, it must be driven from the top. If properly executed, the benefits would be endless. I can possibly write a book on the benefits of digital transformation. It’s so huge to the point that it’s truly a justifiable reason to go digital. 

Firstly, it will create quality awareness for your brand. Quality awareness is the type of awareness that leads to adoption. You see it, you like it, you go for it. As we all know, it is the ideas that spread, that win (Seth Godie). In other words, it is the brands that communicate well get rewarded with massive adoption by the customer.

Secondly, digital helps in creating consumer demand – demand pull. Modern digital advertising provides a great way of communicating the Unique Selling Points (USPs) of products and services, thereby helping to stimulate demand.

Thirdly, digital makes customer satisfaction and loyalty easier. It provides a strong multiple channel response system that encourages greater engagement with the customer which drives satisfaction and loyalty. It helps to show the consumer how their particular brand or product will best meet their needs. It combines audio, video and visuals to bring out product demonstration which is also a strong point in the digital space.

Finally, let’s talk about the effect it would have on consumer response and sales. All forms of digital engagement must drive traffic and sales for it to be considered effective on strategy. High rate of conversion is expected if properly executed. Then the two way communication opportunity it provides makes it more effective and efficient across board.

To conclude, permit me to lend my voice to those who say that the digital world has come to stay. People spend more time in the digital space and it only makes sense to meet them there. Also, it should be entered into consciously by having a clear strategy, getting right support structure and executing well. Digital activities are able to drive instant sales and conversions. They can be tracked and measured via analytics. Digital transformation should focus on creating value through the integration of business functions driven by a value creation leadership mind-set.