Digital transformation is the buzz phrase, which we are being asked to explain a lot recently. At ImproveCX, we define transformation as a full scale change to the fundamental workings of a business.
Therefore, a transformation programme touches every function of a business. Businesses don't transform by choice because it is risky and costly.
Businesses go through transformation when they have failed to evolve. When a business evolves with its market, continually renewing its products and services, gaining new customers and growing the value of existing ones, it doesn't need to transform.
A business may go through changes and restructuring but these are not transformations. Transformations are always highly visible to customers and typically driven by external forces.
The three key drivers for transformation are shifting consumer demand, competition and technology. These are part of the normal environment but when there is convergence of all three factors that amplifies changes in a market.
When any or all of these factors coincide such that a business' operating model is no longer fit for purpose, the business has reached a critical point.
Here's the point – some businesses don't reach these critical points. Why? Because they evolve and spot opportunities and threats before they become critical. Evolving businesses are continually focused on their customers, changing and adapting with, or leading their market. Businesses that spot critical points when they are too late to be considered opportunities need to transform quickly, and those that don't, well they fall by the wayside.
Next, let's define digital. In the broadest sense, we think of this as any technology that connects people and electronic machines with each other or with data. Therefore, "digital transformation" is a visible across-the-board restructuring to avoid a critical point caused by digital technologies and market effects.
At ImproveCX, our aim is to help businesses avoid the need for digital transformation. We specialise in being close to consumers, understanding new technologies and markets, and based on our experience to know what's likely to happen next. We work with our clients to see what's coming and help them evolve to meet the challenges faced. We use our skills and expertise to bring new products and services to life. Often in prototypes and trial these experiences such that our clients can plan for the future, so they can be prepared and lead it.