Common mistakes made while business digitization
The business digitization process of a company is not a cakewalk. Digitizing business is the use of technology to make quantum improvements rather than more incremental adjustments. It is more than just a technology initiative and is, instead, a strategy to completely overhaul an organization's business model.
It is a continuous process through which companies adopt or implement disruptive changes in their organization, their customers, and their market through the ability to replicate innovation in business models, products and services, to naturally unify the component digital and physical. In this process, the business model must shift towards one centered on the individual.
However, many companies are not much clear about this process and end up making mistakes that can put the future of the business at risk. According to the report from the McKinsey consultancy, more than 70% of business digitization processes are a failure.
Thus, in this article, we will share the most common mistakes in the digital transformation process so that you can apply them successfully
Focusing on the short term
The digitization of companies must be understood as a long-term process, the results of which will take more than a few weeks to be visible. There are digitization actions that provide profitability more quickly, such as opening a new online sales channel. However, it is essential to keep in mind that the fact that customers know you and that you stand out on the internet takes time.
Thus, businesses that had already started the digital transformation (for example that already had a presence in social networks) will advance more quickly, while the others will need a little more time. Focusing on short-term goals can only lead to frustration if they are not met. As such, many companies abandon their digitization efforts before processes mature and bear fruit.
Not putting the customer at the center
Another of the typical mistakes when implementing the digitization of companies is to focus on technologies, such as what new software will be used, or what equipment needs to be renewed. Digital transformation is a process whose ultimate goal is to use technology to serve people more efficiently.
With regard to customers, it is about putting them at the center and learning how to better solve their needs. As you start any transformation, consider how it will affect your relationship with customers. What's more, you can ask them directly through satisfaction surveys, to make sure you don't leave anyone behind due to a technological change that they don't understand.
Using social networks only as an advertising tool
In general, the use of social networks is associated with an advertising medium, but the truth is that it has many more applications. In addition to the different options available depending on the social network you use, which allows you to share one type of content or another, the general idea is to provide added value to customers. In other words, social networks should not only be a means of advertising our products or business, but also a means of customer service and to provide content of interest, for example, related to our sector.
Forgetting about goals
Any digitization of companies must be guided by the strategic objectives of the company. Increase productivity, customers, or cut costs are some of the goals you can set, as long as they are measurable and quantifiable. However, when entering the transformation wheel, it is easy to lose focus on your goals. Always keep them in mind and monitor if the changes you have applied are helping you achieve them.
Once all these obstacles have been overcome, the digital transformation will mean a series of efficiencies and competitive advantages for your company. Today, embarking on a digitization process is not an option. The survival of your company in the medium term depends on it.