What is Digital Transformation?
Evolving technology, increasing consumer expectations, start-ups with new business models. Digital Transformation is an organisation's response to keeping pace with an ever-changing environment. It’s the vehicle that moves organisations forward using technology and automation to do more with less, simultaneously reducing cost and increasing business efficiency. The industry defines Digital Transformation as:
The application of digital technologies to improve efficiency, enhance customer value, manage risk, and uncover new monetisation opportunities.
Digital Transformation Trends
So how ready are UK organisations to embark on this digital journey? Explore the current state of UK Digital Transformation by watching our latest trends video.
Transforming the future
UK businesses differ in what Digital Transformation means to them. A trends analysis, where business leaders were given nine definitions and asked to list the top three that resonated with them, revealed:
- 52% think the term means enabling worker productivity
- 46% think it means improving customer experience through technology
- 27% believe it is to be digitally modifying business processes.
Definitions may differ, but trends in future spending don't. By 2021, IDC forecasts that globally, Digital Transformation spending will hit $2.1 trillion, and over 25% of UK business leaders expect it to be a key part of their organisation within 3-5 years. In 2018, 63% of UK businesses have a relevant strategy - up from 27% in 2017.
Digital Transformation Trends: the challenges
The appetite may be high and the desire may be there, but key business leaders are still facing various challenges that are restricting strategies from becoming a reality.
Legacy systems don't always need to be replaced, yet 35% of business leaders identify the replacement of legacy systems as their biggest hurdle. If you're working on Digital Transformation, consider partners who can evaluate your current systems before scoping a large software change project. Legacy systems are expensive to change and it may be that new technologies can bolt on to those existing systems.
Trends indicate that these are the top four main challenges that business leaders are currently facing:
Trends for a new way of working
Organisations now realise to stay competitive they need to understand the needs and wants of customers and employees. This then allows a meaningful evaluation of internal processes and workflows to ensure there’s a match. Evolving customer and employee behaviours was cited as the main driver in Digital Transformation by 65% of respondents in an Altimeter 2017 survey.
A study of business trends shows that by 2020, customer experience (CX) will overtake price as the key brand differentiator, so it's no surprise to hear organisations place the enhancement of CX and employee experience (EX) as the key benefit from their digital plans.
Other benefits business leaders cite include increases in productivity (68%) and becoming more customer focused (62%).
Automating customer and employee communications
Your outbound communications are often the face of your organisation and are therefore key areas to consider first for Digital Transformation. Our Aceni applications bolt on to existing corporate systems to help you drive through a digital document strategy and can be implemented without capital expenditure, license fees or lengthy change projects.
Explore the Aceni suite to support your Digital Transformation journey.
Sources used within this article and video
- Accenture: New rules for culture change, 2016
- IDG: State of Digital Business Transformation, 2018
- International Data Corporation: Worldwide Semiannual Digital Transformation Spending Guide, 2017
- ITProPortal: Digital transformation success relies on customer experience, 2018
- Marketing Week: Transparency, digital transformation, luxury purchases: 5 killer stats to start your week, 2018
- PWC: A marketplace without boundaries? 2015
- Sana: Digital Transformation and B2B e-commerce report, 2017-18