Through the COVID-19 pandemic, businesses have learned the importance of meeting customers where they are. And today customers are online.
The pandemic rapidly accelerated the rate at which businesses employ digital tools in all aspects of their company to connect with and understand customers, find new customers, automate tasks, streamline work processes, and, ideally, drive revenue.
Business leaders see even more change on the horizon. According to a survey conducted by McKinsey in 2021, only 11% of respondents believe their enterprise’s business models will be economically viable through 2023, and 64% report that their companies need to build new digital businesses to get them through that target.
In other words, digital transformation isn’t an end game. It’s an ongoing process for businesses of all sizes. Today, every company needs to be a tech company, no matter what their core business is.
Whether you’ve already begun adapting to digital methodology, or you’re just getting started, here are some simple steps based on our experience to help you rev up digital transformation for your company.
When it comes to digital technologies, a one-size-fits-all model isn’t an option. Every business leader must analyze their own business to uncover how digital processes could improve their efficiencies and their bottom line. For some businesses, a digital leap could be as simple as going paperless. For others, adopting artificial intelligence and data analytics to streamline core workflows could be the answer. For still more, launching e-commerce capabilities, accepting mobile payments, or communicating with customers using chatbots could be appealing. Maybe it’s all of the above! After all, digital transformation involves your internal team as well as your audience/customers. Figure out what the competition is doing, determine what value digitization could add, and uncover your “why” for doing it. Then the real work can begin.
Since digital transformation is a process, the goal posts are forever shifting. That’s why you need a team that focuses on the overarching goal, itself, rather than fawning over specific technologies. At their best, tech tools can make processes simple and efficient. At their worst, digital tools can be shiny objects that seem cool, but don’t offer any return on investment (ROI). The key is assembling the right team to set goals and achieve them, as new technologies arise. If you're relying on a person or people in-house, make sure they have a passion for the project at hand, as well as for the company's longer-term goals, and can leverage relationships and connections to leaders throughout the business. If you’re a small business that doesn’t have experts in-house, find a consultant that can help, and be sure they fully understand the company's culture and goals.
It’s critical that you have buy-in from employees as early as possible so they're fully on board as you make changes. Before training them on the new systems and processes, make sure that your team understands why these new processes are important and what they could mean for the company. Encourage them to make the most out of the new tools and support them with education and training. Some people may fear that automation and new technology could replace their jobs. Assure them that their jobs are secure and that your aim is to train them so that their role can grow along with the business.
Now that you have the team in place, the goals identified, and the tools in hand, establish the processes you’re going to use as you adapt to your new goals. Be sure to set benchmarks and establish a system to measure your progress. That way, if you’re falling short of your goals you can identify what’s going wrong and course-correct along the way. Allow your leaders the flexibility to pivot during the transition as the quick-moving tech space may dictate a change in course. In addition, continue monitoring trends. If you made decisions six to nine months ago that aren't yet implemented, reexamine them and be sure the market hasn't already passed those ideas by.
When your employees are properly trained and the new processes are in order, survey the team on their experiences. Are the latest tools helping, or are they a hindrance? Are people struggling to adopt the new processes? Is additional training needed? Are other ideas being offered up to help make the business work more efficiently? Are you meeting the goals you set? Are you getting the ROI anticipated?
Ask customers and clients what they think, too. Send digital polls and surveys to see if they find the latest changes useful, and to identify any challenges. Encourage as many people as you can to share their thoughts on the latest changes. Who knows? They could pinpoint new pain points, and plant the seed for the next phase in digital transformation.
Remember, these steps are just the beginning. Entire books have been written about this journey! That’s because digital transformation doesn’t happen overnight. As an ongoing process, it will continue to evolve with your business, with tech innovation, and with your team. But the bottom line is this: by staying true to your mission and to your customers, and by using technology that allows you to work smarter, not harder, your small business can gain a competitive advantage that may put you on par with much larger businesses.
Looking for banking and financial insights to guide you as you plan your digital transformation? Talk to the Wintrust team today about technologies, tools, and funding options that could help you on your journey.