Digital marketing and digital transformation are used far too often interchangeably. Thats wrong. Digital marketing is quite obviously about customers yet, digital transformation is about the enterprise as a whole; customers, employees and operations.
The model above shows that digital transformation must deliver one, two or all of the business outcomes; increased revenue, operational efficiency, cost reduction and improved people capability. Preparing the organisation to mitigate the barriers to change are culture, leadership and investment (see previous post.)
The tactics however, are not just about content, SEO, multi channel and social media marketing, its much wider than that and why it gets frustrating when you hear people talk about digital transformation as if it were just the domain of marketing. We’ve gone far beyond that. Haven’t we?
So lets look at the tactics required, enterprise wide, to deliver a fully operational, benefit driven transformation programme.
- Digital Strategy -a clearly defined strategy with a tactical roadmap and business case that shows when goals will be delivered and benefits achieved.
- Data driven insight – leveraging data driven analytics to inform business decisions and drive meaningful improvements for customers, employees, finance, marketing and operations.
- Customer experience – a deep understanding of customers and segments through data, journey mapping and service design that demonstrates how each digital channel will deliver and how that integrates into physical experiences.
- Employee experience – a deep understanding of employees, their expectations, motivations, ambitions, performance and needs. Demonstrated by how digital platforms can enable an exceptional employee experience.
- Optimised processes – improved operational performance that drive true value. Understanding which processes are working and which are not. Identifying those processes that were designed for the organisational rather than human experiences. Building optimised processes that enhance customer and workforce experiences.
- Integrated systems – integration of data and different tech systems is critical. Enabling the organisation to be able to use data effectively and use new technologies to create value.
- Scalable architecture – anticipating and delivering digital needs at scale for new products, improving experiences, operational efficiency and legacy migration.
- Innovation – learning to navigate rapid change, uncertainty and disruption by understanding how to use insights and entrepreneurial thinking to generate new ideas and at scale.
The capturing of value via digital transformation programmes comes from efficiencies in the middle and back office more than the front office. As one of my clients once said, “You can have a very sexy front office, and still have 3 million hamsters running around in the back office trying to make it work.”