Digital transformation: the guide to understanding and facilitating your digital transition
Introduction
In the wake of the Covid-19 pandemic and the profound changes it has triggered or helped to accelerate, it seems that no sector or company can afford to ignore the issue of digital transformation. While the term has been fashionable for many years, the reality of its impact goes beyond a mere buzzword. According to the latest barometer published by France Num, 81% of VSE-SME managers who have initiated a digital transformation strategy are experiencing real benefits (compared with 78% in 2021 and 68% in 2020).
In this guide, discover the fundamentals of digital transformation and learn how to facilitate and accelerate your digital transition.
Digital transformation: theoretical and practical definitions
What is digital transformation?
Digital transformation is the complex process by which a company integrates new technologies and digital technologies into its activities. The changes involved can be far-reaching, in organizational, financial and strategic terms.
Again according to the France Num barometer, 37% of VSE-SMEs surveyed consider that launching a digital transformation strategy has enabled them to directly increase their sales, but this is not the only benefit noted. The benefits are numerous and concern the entire organization. A properly implemented digital transformation also optimizes operational efficiency, increases business agility, uncovers new sources of value for employees, and delivers better service to customers and suppliers alike.
Digital transformation is based on two key concepts: digitization and digitalization. Digitization involves converting analog information into digital format, while digitalization involves using this digital data to transform business processes and corporate projects. Digital transformation goes beyond digitization initiatives, encompassing the entire company. In most cases, it requires a shift in mindset, from a traditional approach to one that is more collaborative and experimental.
Technologies for digital transformation
The maturity of several technologies has played a key role. Here are the most important:
- Big Data refers to the collection and analysis of large quantities of data to extract valuable information.
- Artificial intelligence (AI) concerns the creation of machines capable of learning and making decisions autonomously.
- Cloud computing makes it possible to store and access data and applications remotely via the Internet, offering greater flexibility and scalability.
- The Internet of Things (IoT) involves connecting everyday objects to the Internet, while robotics refers to the use of robots to automate tasks.
These technologies form the foundations of digital transformation, and offer unprecedented opportunities for companies to improve their efficiency and innovation.
Digital transformation models
Digital transformation has also fostered the emergence of new business models. For example, the SaaS (Software-as-a-Service) model enables companies to access software and applications via the Internet, without having to install them locally. It offers flexibility and ease of use, as updates and maintenance are managed by the service provider.
The On-Premise model, on the other hand, involves installing and running software directly on the company's internal servers. This can offer greater control and customization, but also requires in-house management and maintenance.
The PaaS (Platform-as-a-Service) and IaaS (Infrastructure-as-a-Service) models offer flexible development and hosting environments, where companies can build and deploy their applications without worrying about the underlying infrastructure. Each model has its own specific advantages and considerations, and the choice depends on the company's needs and resources.
Digital tools for digital transformation
New technologies, new models, but also new tools. The latter are particularly numerous and concern all business processes. These include :
- ERP (Enterprise Resource Planning) systems, which centralize the management of company resources and data,
- CRM (Customer Relationship Management) designed to manage and analyze customer interactions. They enable you to centralize customer information, improve sales and customer service management, and develop more personalized relationships,
- Business Intelligence (BI) tools, which collect, analyze and visualize company data to facilitate decision-making,
- project management tools for planning, collaborating and monitoring projects,
- but also all the everyday tools such as instant messaging and videoconferencing that enable real-time communication and collaboration.
The user journey at the heart of digital transformation
Understanding user needs and expectations
Digital transformation is also accompanied by a major paradigm shift. From a rather "top-down" relationship, we have moved to a greater consideration of user needs and behaviors. A detailed understanding of customers has become indispensable.
This includes the use of analysis and analytics tools to map and improve the user experience, and the collection of data to better understand their expectations.
This detailed understanding of customers enables companies to adapt their products, services and strategies to meet their needs effectively. Data collection makes it possible to personalize interactions, and we're no longer just talking about the "sales force", but about the "customer experience". By placing users' needs and expectations at the heart of their strategy, companies can create solutions that truly meet market demands, and build lasting relationships with their customers.
Some examples of successful digital transformation
Air Liquide: offering flexibility to employees
Air Liquide has deployed an initiative called "Connect" to strengthen interaction within its teams. As part of this project, the various sites were integrated into a control center, promoting greater interactivity between the different teams. This strategy was designed to increase staff flexibility, enabling them to adopt new technologies in line with their needs. Particular attention was also paid to training as part of this digital transformation. Pedagogical resources that encourage exchange and learning, such as 360° videos, have been made available to everyone. The aim? To encourage horizontal communication.
La Poste: more than just mail delivery
La Poste has embraced digital transformation by diversifying its services and dematerializing its processes. The company has introduced online services such as mobile banking, real-time parcel tracking and online account management. It has also succeeded in establishing itself as a key player in digital identity issues, while maintaining a close relationship with its customers. La Poste has managed to maintain its relevance in the digital age at a time when its core service, postal mail, was under threat.
BNP Paribas: a bank and services
BNP Paribas is also often cited as one of the companies that have successfully negotiated what might at first sight appear to be tricky digital turns. It embarked very early on a profound renewal of its approach to customer service by offering online banking services. It developed mobile applications offering a multitude of financial services, from account management to money transfers and loans. The use of technology has enabled BNP Paribas to offer a more convenient and accessible service, while maintaining a high level of security.
Best practices in digital transformation
Digital transformation would be nothing without a corporate digital culture. To cultivate it, rely on 3 essential pillars.
Empower your employees (for real!)
The way we manage has changed radically in recent years, and the Covid-19 pandemic was a major catalyst. Employees must now be actively involved in the various processes that affect them. Decisions must be taken jointly, to foster a culture of shared responsibility.
Similarly, to encourage the adoption of a digital culture, it is necessary to encourage autonomy, initiative-taking and cross-functional collaboration. For example, by offering appropriate training to develop the necessary skills.
Far from being a mere veneer, the empowerment of employees must be real and profound if we are to stimulate innovation, but also strengthen commitment and create a positive dynamic for change management.
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Think continuous improvement
Digital transformation is not just a single project, it's an ongoing process. It is therefore necessary to adopt a strategy of continuous improvement to remain competitive in a constantly changing environment. Encourage innovation, encourage experimentation and be open to new ideas.
Establish regular feedback and evaluation mechanisms to identify areas for improvement and make adjustments. By thinking in terms of continuous improvement, you ensure the sustainability of your digital transformation and keep your company at the forefront of innovation.
Set clear KPIs and manage your business on a daily basis
As part of your digital transformation, it's essential to set relevant key performance indicators (KPIs). Identify the strategic objectives of your digital transformation and define specific KPIs to measure them. They will enable you to adjust accordingly.
Track these KPIs regularly to assess progress and make data-driven decisions. Use dashboards and reporting tools to steer your business on a daily basis. This will enable you to stay aligned with your objectives, identify any gaps and make the necessary adjustments to ensure the success of your digital transformation.
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