Digital has disrupted every industry. Every company in this modern era is undergoing through some sort of digital transformation but some of them might not be clear as how to approach these challenges.

In order to understand this, first we would need to understand the key drivers, focus area and the business benefits behind the Digital Transformation.

As far as we could understand the industry, the key drivers are

1. Increasing customer demand for personalized experiences
2. Increased disruption from use of new business models
3. Faster pace of customer and market change
4. Increasing pressure to deliver more value at a lower cost
5. Increasing pressure to manage complex supply chain

The Key focus areas are:

1. Increase sales, customer acquisition, retention, and satisfaction
2. Better predict potential buyer and new product outcomes
3. Increase design and engineering productivity
4. Identify and implement manufacturing efficiencies
5. Improve production output and quality

The key business benefits are

1. Improved marketing and sales effectiveness
2. Increased market share
3. Improved perceived services
4. Improved speed to market
5. Reduction in operating costs

Now, in order to address the challenges, we recommend following four major steps and that’s the key takeaway from this article.

Step 1: Engage your customer - Deliver personalized rich, connected experiences in journeys your customers choose.

Step 2: Empower your employees - Keep up with your fast moving customers, efficiently collaborating to anticipate and meet customer demands.

Step 3: Optimize your operations - Increase the flow of information across your entire business operations, better manage your resources, and keep your business processes synchronized across all boundaries.

Step 4: Transform your Products/services - Expand the reach of your business using digital channels, anticipate customer needs, understand how your products are used, and quickly develop and improve products and services.

The Key drivers, Investment objectives and benefits for each step are:

1. Step 1: Engage your customer

The Key Business Drivers are:

a. Competitive Pressure
b. Rapidly changing customer and market needs
c. Changing business model and cost control
d. Increasing customer demand for personalized experience
e. Overabundance of choice for customers
f. Eroding customer loyalty
g. Mobile-first world

The Investment objectives are:

a. Increase customer acquisition, retention, satisfaction and loyalty
b. Develop new revenue opportunity throughout customer journey

c. Improve customer connection and personalized experience
d. Improve and monitor impact and effectiveness of marketing
e. Increased marketing agility and time to market
f. Increase customer and marketing insights

The Key Benefits:

a. Improved market effectiveness and ROI
b. Increased market share
c. Improved product/service quality
d. Improved brand value
e. Improved collaboration with partners
f. Improved speed to market
g. Increased revenue via cross sell / up sell
h. Increased customer satisfaction and loyalty
i. Reduced time to create and deploy campaign

2.Step 2: Empower your employees

The Key Business Drivers are:

a. Rapidly changing customer and market trends
b. Market pressure
c. Changing business model and cost control
d. Increasing stakeholders / customer demand for personalized experience
e. Too many IT options
f. Mobile first world
g. Actionable information required right now

The Investment objectives are:

a. Improve Enterprise agility to changing demand of business and market
b. Develop new revenue opportunities
c. Improve and simplify internal business processes
d. Making organization more secure
e. Increase collaboration among employees
f. Increase customer and market insights

The Key Benefits:

a. Improved speed to market/innovation
b. Improved product/services quality
c. Increased stakeholder satisfaction
d. Improved ROI of IT Projects
e. Improved collaboration among employees
f. Lower TCO for IT
g. Accurate business reports and forecast
h. Reduced IT Security threats
i. Reduced time to create and deploy IT Solutions

3. Step 3: Optimize your operations

The Key Business Drivers are:

a. Economic slowdown in developed economies
b. Increasing cost
c. Customer demand differentiations
d. Scarcity of skilled labors
e. Growth in emerging markets
f. Stricter regulations

The Investment objectives are:

a. Resource management
b. Safety and Compliance
c. Operational excellence
d. Customer satisfaction and reliability
e. Improved productivity
f. Market relevant products
g. Achieve sustainable advantage and growth

The Key Benefits:

a. Production loss avoidance
b. Reduction of inventory cost
c. Operations cost optimization
d. Proactive resource planning
e. Supply chain optimization and cost reduction
f. Better utilization of equipment and work force
g. Agile workforce with better mobility
h. Real-time updates for the equipment

4. Step 4: Transform your Products/Services

The Key Business Drivers are:

a. Economic slowdown in developed economies
b. Increasing cost
c.Customer demand differentiations
d.Scarcity of skilled labors
e.Growth in emerging markets
f.Stricter regulations

The Investment objectives are:

a. Field crew efficiency
b. Safety and compliance
c. Operational excellence
d. Customer satisfaction and Reliability
e. Improved productivity
f. Market relevant products
g. Achieve sustainable advantage and growth

The Key Benefits:

a. Reduced time to market
b. Improved product longevity
c.Increased revenue through relevant and differentiated products
d. Supply chain optimization and cost reduction
e. Real-time updates for the equipment