Until early 2020, only 15% of companies prioritized digital transformation. But now the disruption and rapid changes that continue to face businesses, have put digital transformation at the core of virtually every business decision and strategy. In 2022, businesses should be planning to move beyond digital transformation and into the new phase of digital optimization.
Gartner defines digital optimization as the “process of using digital technology to improve existing operating processes and business models” whereas the term digital transformation is more often used to describe initiatives such as moving customer or financial services online. Digital optimization moves on from exploiting the shiniest new technology initiative and encompasses a wider view on overall business and process development and optimization.
Overcoming Top Challenges to Digital Optimization
Even if your business survived the whirl of the digital transformation buzz and the surrounding years, there are several challenges decisionmakers need to face to ensure successful digital optimization throughout the organization:
- Know how to leverage new technologies to improve, add, or change existing business processes and methodologies
Do your current business processes reflect the growth you expect your company to achieve? Ensure that your current roadmap capable of helping you reach your long-term business goals, and the technology needed to support business scale and growth is in-place or planned.
- Understand evolving customer needs
People have realized just how much they can get done from their laptop and smartphone. As such, customers are more discerning and demanding than ever before.
- Implement an Organizational Change Management Strategy
Outdated organizational structures, inefficient workflows, and rigid leadership styles can all impede digital transformation success. Take time to develop a clearly defined strategy that supports business goals and that is consistent across the organization.
- Set and stick to a budget
Scope creep is everyone’s worst nightmare, often arising in projects and plans without a clear-cut strategy and a set budget. Set the budget goals at the beginning of the project and carefully consider any changes in scope and budget before committing.
- Promote effective Data Management
Customer data is one of the pillars of digital optimization. With it, you can gain rich insights into your buyers’ preferences, behaviors, and potential future decisions.
The digital optimization challenges listed above might seem overwhelming, but they don’t have to mean the end of the road for your project. Learning how to prepare for, identify, and work around these issues is key. Many problems begin by rushing into the effort, starry-eyed about the shiny new technologies promoted by ERP vendors. By taking your time, researching your options, and preparing your employees, you can realize all the benefits you hoped to achieve.
Our team of ERP consultants can help you at every step of this journey. Contact us below for a free consultation.
Competitive Advantages to Digital Optimization
The road through digital may sound challenging, but it leads to several competitive advantages if well prepared and planned. According to a study by Deloitte, innovation was listed as the top reason for corporations to invest in digital transformation and optimization. In more digitally mature companies, 81% cited innovation as a strength and only 10% of lower-maturity companies did so.
Digital optimization also provides customer continuity via an improved customer experience. By bridging the gap between personal and digital, digital optimization can provide rich customer insights, personalization, and customer experiences that build on top of each other. Stronger and more actionable data with a “Single Source of Truth” leads to reduced time spent chasing after accurate data and provides decision-makers with the right data at the right time to make the best decisions.
The goal of digital optimization is not to reach a point in time where your organization is “fully optimized”, but rather reach an ongoing state of agility, alignment, and responsiveness. Change is not always viewed in a positive light, but leaders need to recognize that while change may bring difficulties, with change also comes opportunities.
At Annata, our team of ERP consultants can help you at every step of your digital optimization journey, whether you are just beginning or been at it for years. Identifying digital priorities and building a digital roadmap that aligns with long-term strategic goals is just one of the ways we can start you on your path to digital optimization. To speak with one of our consultants about a process and technology assessment and begin developing a personal roadmap contact us here.
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