Digital transformation is super slick, super sexy and super high-tech, right? That’s certainly part of it. But a lot of digital transformation makes the same common wasteful mistake…
Sales and marketing – they’re directly connected to the tills and client satisfaction. But actually, those dusty departments behind the scenes aren’t so dusty after all.
Think of digital transformation and you think of increased profitability and revenue, enticing customers and sales. APP development, web improvements, or the in-store experience jump to the front of the queue. But real transformation runs through the veins of your entire business – from your front to back office and everywhere in between. Sure, your new APP might be increasing sales upfront. But it’s all for nothing if the back office is eating the profits.
2020 has seen many businesses take a serious sales hit. Yet the costs of doing business remain static or invariably increase – eroding your bottom line. It’s been a turbulent ride, that’s for sure. But even when you’re up against pandemics, it doesn’t have to be.
Internal inefficiencies are the blockade to your business. Staff waste time and pull in different directions; processes are not collaborative and harmonised, systems are antiquated and held together by a shoestring. Inefficiencies (in a nutshell) consume the profits you are keen to achieve. Businesses might think, ‘what has HR got to do with CX?’ Fact: Great CX demands a great team, great processes – you get the idea. Every department needs to shape up, get on board and transform the way it works for whole-business improvement.
Without addressing internal inefficiencies, true transformation can’t take place and it’s a common and expensive mistake we see time and time again.
Finance, logistics, HR – your back office is the backbone of your business. Antiquated systems, processes and procedures are the enemy. It is no coincidence that those thriving this year have undergone a strong digital transformation, diversified revenues, improved profitability and removed waste. Either that or they’re in the hand sanitizer game. To stay agile and sail through choppy waters with finesse – you need to ‘pivot’ faster than your industry and competitors. That simply isn’t possible with redundant layers of legacy processes and admin weighing down every management decision. Many businesses struggle to ‘pivot’ at all or too late and their P&L shows it.
As a business, how can you find a way to be more efficient – more cost-effective? Trim the fat and adopt agile processes and a framework that empowers staff. Create clear accountability, clear communication and a common goal – all underpinned by data-driven insights to continually adapt and evolve. While a pandemic is extreme, trends, tech and needs chop and change like the weather. Can your business chop and change with them?
Shiny tech is not the answer in isolation. Integrating digital capabilities such as automation, real-time analysis and reporting allow you to identify waste and reduce the costs of doing business…
It all sounds great, but where to start?
1) Be honest, if one of your strategic goals is to reduce the operational cost of doing business, then (honestly) review the cost centres within your business
2) Review functional areas and heatmap the capabilities; identify the gaps, inefficiencies and duplication where change is required
3) Create a transformation roadmap/plan for these prioritised areas
4) Create a diverse cross-functional team to execute the roadmap in bite-sized chucks – keeping it well managed and tight
5) Explore and trial niche digital solutions that can address these areas – digital is changing rapidly; small niche tech could solve a very specific problem (don’t be afraid to embrace innovation)
6) Measure – learn – adapt – move on to the next priority
We understand that transformation requires many moving pieces, niche solutions, experts and your own people to come together to deliver a shared goal. At DFD, we deliver a clear, proven framework and orchestrate your unique programme of projects and workstreams.
Providing the right resources (only where you need them), clear communication and governance; we skip the complex and entirely swerve the bureaucracy.
Welcome to digital transformation that leaves you with an entirely new business capability – the ability to continuously improve and stay lean. Pivot, don’t pivot – you’re now an entirely agile business holding the reigns and primed for the future.
It might be October, but we don’t do scary costs either.
For a successful digital transformation that improves your entire business, why not give us a shout?