Business Transformation v Digital Transformation
Regardless of whether a company is privately owned or publicly held, no matter the size, in business, it’s now essential business practice to innovate and remove outdated methods to succeed. This doesn’t just apply to the technology being used, but the thought processes of every employee within a company as well.
One cannot thrive without the other, which is where the concepts of digital transformation and business transformation come into play, although each are separate concepts, they go hand in hand.
Keep reading to learn more about why a company needs to embrace both in order to succeed, and for an explanation of each.
What Exactly Is Business Transformation?
Business Transformation is a strategy of change management. It serves to align process, people, and technology within an organisation to better match the overall strategy of a business and its vision for the future. It drives innovation and supports new business strategies.
Innovation is one of the essential elements of a successful business transformation project. Without it, projects fail, and transformations cannot happen.
What Exactly Is Digital Transformation?
Digital Transformation is the process of using various new technologies to create or change business processes, customer experiences, and company culture in order to meet the changing market or business needs.
Although business and digital transformation have some elements of crossover, the two are distinctly different.
Digital Transformation Vs. Business Transformation – The Facts
Almost everywhere you look, transformation is being spoken about in one way or another. Even when organisations talk seriously about digital transformation projects, there is very little explanation as to what that actually means. Business transformation is the same.
In corporate strategy meetings, transformation is being hailed as the solution that will help organisations overcome market challenges, capitalise of changing technologies, and change the way they do business to help them perform better and deliver a better service.
Business Transformation is about the cultural shift, and the underpinning business processes that are driven by the changing demands of the market.
Digital Transformation is about the tools and technologies used in order to drive change in an organisation. It also addresses business processes, and this is where one of the major crossovers between the two exist.
Transformations Are Always Going to be Needed – Which Is Best?
In the present day, businesses need to disrupt, or they’ll be disrupted. Regulatory changes, globalisation, and the dynamic nature of technology mean that the organisation needs to undergo both business transformation and digital transformation in order to remain competitive and relevant.
A meaningful business transformation should converge strategies which harness IT innovations, sophisticated processes, and which always put their end customer at the heart of everything they do.
Business transformation should focus on the business and go-to-market models. Whereas, digital transformations focus on the technologies that support those efforts. Many could argue that digital transformation is simply an element of business transformation.
Why Do Transformation Projects Fail?
While there are lots of organisations embarking on digital transformation projects; the mistake many are making is because they are focusing their attention wholly on getting the technology in place first. Many people only consider the changes that are needed within an organisation once the technology is in place.
Without consideration of the fundamental changes that are needed within an organisation first, even the most sophisticated of technology platforms stands a slim chance of having the impact that was expected.
The people, the channels, the processes, and the touchpoints are just a few of the key areas that need careful consideration. For any digital transformation to truly succeed, a change is required from the wider business.
? Changes to production or the supply chain
? Changes to marketing
? Changes to channel and sales strategy
? Changes to the organisation
? Changes to the way management view the company
Business transformations and digital transformations cannot be successful in isolation of the other.
Before you decide to start the process, here are some things to consider:
Are your employees open to change?
If not, then you’ll need to get them there through coaching.
Do you have the staff to make it happen?
Having the right employees in place is necessary for a business to truly transform. Without them, things could spiral out of control.
Are you ready to make a big investment?
Change and innovation come with a price tag. Make sure you have the necessary cash flow to avoid having to stop as soon as you get going.
Can you stay the course?
To truly transform your business, you need to be willing to stay the course and not quit on the process if things start to get tough. As with any change, there can be challenges, and you can’t take the easy way out.
Digital transformation and business transformation are critically important when it comes to ensuring the success of a company. They work hand in hand, and without both, a company will not be able to sustain its relevance or competitiveness in their respective markets.
About CTR
CTR helps clients to address skill shortages within their organisation by providing trusted and experienced consultants for various projects on both a short or long-term basis. For any business or mission-critical project or program to succeed, having the right people available to assist is key.
We provide Digital and Business Transformation project expertise to help you tap into the unseen talent pool of exceptional professionals. With any investment into the future of your business, you need industry-leading knowledge and project-specific skills that will support your business as it aims to deliver on its digital and business transformation goals.
Let’s connect today and start a conversation around your plans for business and digital transformation.