By now, you have probably heard of Digital Transformation Consulting Firms. But, do you know what it means for your business?
Digital transformation is rethinking how an organization uses technology, people, and processes to change business performance fundamentally. It will change your business models by expanding them beyond your traditional boundaries. For example, you will be able to connect your supplier network digitally.
With real-time predictive analytics, detail-driven customer engagement, and automation throughout the value chain, your business processes will improve.Workforce productivity will improve as you know where to allocate people and work for optional engagement.
What is a Digital Consulting Firm?
A Digital consulting firm specialize, unlike traditional consultancies, in the development of strategies and implementation of digital technologies, among other services. These digital transformation consulting firms have the analytical and business knowledge to ensure that a company achieves its short to long-term innovation and technology upgrade goals efficiently and within budget.
Many success stories have proved the benefits received by resorting to this consulting. Statistics and professional opinions agree that the demand for the services offered by these technology consulting firms will only continue to grow. They result in an acceleration of business innovation, leading to a direct impact on the era of digital transformation within different industries.
What are the Biggest Challenges that Digital Transformation Consulting Companies Face?
There are possible challenges and problems that a digital consulting service company may face during the digital transformation of a business. Among the main and most important ones we find:
- Lack of a Digital Transformation Strategy.
- Security Concerns.
- Lack of Proper IT Skills.
- Lack of Change Management Strategy.
- Complex Software & Technology.
- Driving Adoption of New Tools & Processes.
- Continuous Evolution of Customer Needs.
Main Areas of Focus of the Digital Transformation Consulting Companies
This re-imagining of a business into the digital age allows organizations to be prepared to keep pace with the progress of their competitors and keep abreast of the changing and demanding needs of the marketplace.
These upgrades go beyond traditional sales, marketing, and customer service models, referring more to the way companies relate to their customers and their customers’ needs. By incorporating these new technologies and processes, companies will be able to optimize the way they do business.
By exponentially increasing their customer experience, these new tools will lead to considerable growth and the opportunity to open up new markets, which were previously seen as a challenging goal.
There are four main areas to consider when planning a digital transformation, which we will explain below.
Process transformation is a long-term change management process driven by external pressure to adapt to new conditions and requirements and meet business objectives. It involves radical changes in business processes and must be aligned with the company’s strategy.
Business process transformation is “a significant change or leaps in the design, flow, activities or implementation of a process.” Typically, business process transformation focuses on achieving essential business objectives by increasing efficiency through digital orientation.
Process transformation is a long-term project to adapt to new conditions and requirements to meet specific business objectives. This process is the primary implementation of decisive changes in the way procedures are carried out in the company to align with the new ultimate goal.
Business Model Transformation
Business model transformation helps improve and drive changes within business models and implement the operational improvements needed to achieve a strategic vision within an organization’s future.
Like the reinvention of video distribution created by Netflix, music distribution created by Spotify, or the reinvention of the private transportation sector by Uber, many companies are betting on digital technology to transform their traditional business models.
By reinventing themselves and adding digital technology upgrades to their current success model, companies are achieving a renewal that leads to significant new growth opportunities.
Domain transformation is an area that often does not get the attention it needs. But, as we have been talking about, new digital technologies have the power to recreate products and redefine services. These forms of transformation create outstanding opportunities where companies can create new value.
Domain transformation is the ability of a business to enter a completely different area and succeed in it. A great example is Amazon, which expanded its retail business with Amazon Web Services (AWS), now its largest cloud services provider. Where previously, this field was dominated by Microsoft and IBM.
Companies experiencing digital transformation should know the vast opportunities that domain transformation can present when incorporating new technologies.
Cultural / Organizational Transformation
Cultural transformation occurs when an institution engages in a process to realign the culture with its vision, mission, and core values to achieve its strategic goals.
Digital transformation can negatively affect a business if the company fails to align it with its internal values. Therefore, leaders within the organization must formulate a clear vision of the change being created and regularly communicate it. In addition, they must consider the risks and why they are worth taking.
Digital Transformation Consulting Services Technologies
Digital Transformation Consulting Services are primarily using certain technologies to achieve industry-specific objectives. Among the most used digital tools we find:
- Big Data
- Cloud Technologies
- Mobile Technologies
- Machine Learning
- Internet of Things (IoT)
You are probably asking yourself: Is now the time to make these sweeping changes in your business? And the answer is YES! There is no better time to contact a digital transformation consulting firms to look at your business process and how they can be improved and implemented while your staff can take the time to learn the new technology.