For over 20 years, digital technology is revolutionizing businesses in every sector. Even with this long history, some businesses are struggling to adapt or successfully deliver digital transformation. Challenges that they experience with new digitalization models include –
- Aggressive competition with legacy models that burdens profit growth and earnings.
- Even if businesses fight aggressively using innovative ways they slash more profits and revenue growth.
- When businesses implement transformation to stay ahead of the competitive curve the outcomes are generally underwhelming.
Fortunately, there are organizations that witnessed business growth and significant ROI from digital investments.
How did successful businesses the reverse obscenity of poor digital growth?
According to the professionals at TCMP or digital marketing experts ‘bolder digital strategy effective digital transformation’. The bolder you create a digital strategy the chances to obtain a fruitful digital transformation for your business increase. Bold corporate strategies are connected with superior performance in profitability, revenue growth, and ROI.
Offensive digital tactics
An offensive digital transformation strategy, on the other hand, is focused on leveraging technology to gain a competitive advantage and capture new market opportunities.
- Using digital platform strategies allow businesses and customers to interact directly.
- Use technology to create digitally enabled products or services.
- Use digital tools to tap supply sources that were inaccessible at marginal cost.
Defensive digital tactics
A defensive digital transformation strategy is one that focuses on mitigating risks and protecting an organization’s existing market position.
- Use digital tools to re-bundle and customize products for better-existing customer service.
- Set up a digital distribution channel, so that existing consumers can easily access their brand.
- More than 50% of business owners adopt digitalization for cost efficiency via automation.
Successful organizations choose an offensive digital strategy because they are aimed at attaining new customers or new products. If you use a cost-efficiency strategy then it focuses on survival instead of comparative advantage. Cost-cutting is a defensive tactic that leads to poor digital growth.
In short, defensive digital transformation focuses on minimizing risks and protecting existing market positions, while offensive digital transformation is focused on identifying and capturing new growth opportunities through technology innovation.
5 rules for successful digital transformation
Develop a clear strategy
Digital transformation requires a well-defined strategy that aligns with your business goals. This strategy should outline the key objectives, milestones, timelines, and resources required to achieve your digital transformation goals.
Build a strong digital culture
Digital culture is critical to the success of any digital transformation initiative. You need to foster a culture of innovation, collaboration, and continuous learning to empower your employees to embrace new technologies and ways of working.
Digital transformation should be focused on delivering exceptional customer experiences. You need to prioritize customer-centricity by gathering customer feedback, analyzing customer data, and designing solutions that meet their needs.
Invest in the right technology
Digital transformation requires investing in the right technology to enable your business to operate more efficiently and effectively. This could include cloud computing, AI and machine learning, big data analytics, and automation technologies.
Establish strong partnerships
Successful digital transformation requires collaboration with partners, vendors, and other stakeholders. You need to establish strong partnerships with organizations that can provide the expertise, resources, and technology needed to drive your digital transformation initiatives forward.
Businesses planning to implement digital transformation must ensure that the strategy they create is transformational.