{"id":86609,"date":"2021-08-04T10:05:43","date_gmt":"2021-08-04T10:05:43","guid":{"rendered":"https:\/\/www.similarweb.com\/corp\/?p=86609"},"modified":"2025-03-24T14:55:41","modified_gmt":"2025-03-24T14:55:41","slug":"digital-transformation-strategy","status":"publish","type":"post","link":"https:\/\/www.similarweb.com\/blog\/research\/digital-analysis\/digital-transformation-strategy\/","title":{"rendered":"Digital Transformation Strategy: How to Drive Change (and Stay Ahead)"},"content":{"rendered":"

Digital advancements aren’t new, but the rapid digital transformation we\u2019re seeing is.<\/p>\n

As a result, customer expectations are changing fast and new business models and products are emerging all the time. To keep up you need to be agile.<\/p>\n

What sets successful companies apart from the ones that crack under pressure? They have a digital transformation strategy and one that\u2019s based on digital intelligence<\/a>.<\/p>\n

Keep reading to get the strategies and tools you need to leverage emerging technology for success in the digital age.<\/p>\n

\"join<\/p>\n

What is a digital transformation strategy?<\/h2>\n

Let\u2019s back up a few steps and examine what we\u2019re actually dealing with. Digital transformation<\/a> is the process of restructuring your organization’s business strategy and processes with technology. It also includes the impact this transformation has on work processes, internal hierarchies, and operational efficiency.<\/p>\n

We\u2019re talking about huge, industry-shaping changes, not the smaller technological advancements like switching to wireless charging. We mean large-scale digital disruption. Think artificial intelligence, internet-of-things (IoT), or machine learning. The quicker you are able to adapt, the more digitally mature your company will become.<\/p>\n

You can actively plan and determine your path to digital maturity with a <\/b>digital transformation strategy<\/b>.\u00a0 <\/b>Adapting to ongoing changes keeps you ahead of the competition and can make you a trailblazer in your industry.<\/p>\n

Leading the change<\/h3>\n

Why is it important that you create a successful digital transformation strategy? Companies are moving forward with digitalization, and it provides them with an advantage in the competitive marketplace.<\/p>\n

Digital technologies allow you to provide a better customer experience, stay connected, and use your resources efficiently.<\/p>\n

Users get used to immediate service and expect convenience. Tools that provide better services, react quicker, are more accurate, or process more data set the standards.<\/p>\n

To be an industry leader<\/a>, you need to anticipate and capitalize on market trends and customer needs before your competition.\u00a0<\/b><\/p>\n

Prime example: Amazon\u2019s expansion in the cloud-computing space with AWS. The eCommerce giant\u2019s expansion into the space has proven to be extremely profitable.<\/a><\/p>\n

Much like eCommerce trailblazer Amazon has shown, you have to keep up and lead in your space or you face losing relevance with customers.<\/p>\n

Digital transformation also leads to higher efficiency in your internal workflows and business processes. The whole idea behind digitalization is to become leaner, so you can save on costs and generate higher profits.<\/p>\n

\"leading<\/p>\n

A digital transformation-driven strategy<\/h2>\n

Effective digital transformation starts with making digital maturity a business goal. When you have reached the highest level according to a commonly accepted digital maturity index<\/a> or model, you\u2019ll be agile enough to embrace change.<\/p>\n

Even better, you\u2019ll develop a method to identify where the market is going, detect trends and anticipate what\u2019s the next big thing in the market.<\/p>\n

\"why<\/p>\n

Without a strategy, digitization advances unevenly throughout your organization and in different directions, causing imbalance and confusion. This slows down the entire process, and you run the risk of becoming less agile and profitable instead of the other way round. A strategy needs to encompass the whole organization and provide supportive frameworks.<\/p>\n

You can track your company\u2019s progress using a digital maturity model<\/a> like the below created by Google and Boston Consulting Group (BCG). Where do you currently fall?<\/p>\n

\"google<\/p>\n

Digital maturity model refresher<\/h2>\n

A well-thought-out digital transformation strategy leads organizations through the four main stages of digital maturity. That doesn’t mean transformation is finished when they reach the highest level. Digital maturity means that an organization is able to embrace ongoing digital change naturally. Need a refresher on the steps to digital maturity?<\/p>\n

Step 1: Assess the current level of your digital prowess.<\/b> Understand the industry’s level and the pace at which digital transformation is progressing.<\/p>\n

Step 2:<\/b> Create a vision for your company<\/b>. Define what digital maturity means in your niche, what you need to do to accomplish it, and enable your organization to keep changing and developing further.<\/p>\n

Step 3: Examine which tools are available<\/b> and evaluate their contribution to reaching your business vision. Assess the implications for your staff and impact on your business culture.<\/p>\n

Education and training are a vital part of a digital transformation strategy. Remember, digital leaders are only as good as those who they work with. Set a sturdy framework to support employees and business continuity throughout the transition period.<\/p>\n

Repeat: <\/b>Monitor for continuous improvement and new opportunities. There is no standstill; digital technologies and capabilities will keep evolving.<\/p>\n

Only when all details of your digital transformation initiative, including cost calculation, timeline, risk assessment, etc., are laid out and internalized by everyone, can you start implementing step by step.<\/p>\n

\"steps<\/p>\n

Anticipating obstacles on the digital transformation journey<\/h2>\n

A typical digital business transformation means going through a period of significant change that will disrupt the organizations’ routine. Transitions are never easy. Employees need to adapt to new technologies and get used to data-based workflows and decision-making processes.<\/p>\n

To minimize the damage and keep the business running smoothly while the company undergoes revolutionary changes, preparation is key.<\/p>\n

For example, you may decide to get rid of the software your dev team built years ago for accounts payable. It\u2019s time to replace it with a more advanced system that integrates with the rest of your financial and operational software. While the department is transitioning, payments still need to be made.<\/p>\n

The digital transformation process ensures that the organization makes the switch smoothly without jeopardizing business operations. You need a clear step-by-step plan of how to implement each step and secure your business.<\/p>\n

Digital transformation strategy approaches<\/h2>\n

When we talk about digital transformation, we\u2019re not talking about the end of all brick-and-mortar businesses. But it means finding the best and most effective ways to incorporate digital technologies into your business, even if it\u2019s a new process to you.<\/p>\n

Whether you are making your first big technological switch or building upon older processes with new product launches, as long as you are innovating and open to change you are on the right track.<\/p>\n

Let\u2019s take a look at three different approaches to building a successful digital transformation strategy. Depending on your business model or the end result you hope to achieve, one may be more relevant than the others.<\/p>\n

1. Conduct a digital SWOT analysis<\/h3>\n

To create a digital transformation strategy based on the competitive landscape<\/a>, conduct a SWOT analysis<\/a> to find out what your internal strengths and weaknesses are when it comes to digital technologies.<\/p>\n

You can answer questions like:<\/p>\n

    \n
  • Which of your teams are more proficient and open to digital tech and which less?<\/li>\n
  • Which business units need to advance quicker?<\/li>\n
  • Are your competitors using technology in a way that you\u2019re not?<\/li>\n<\/ul>\n

    By benchmarking your digital maturity<\/a> to others in your market, you\u2019ll identify where your competition is beating you and what the industry standards are. Pinpoint opportunities and threats arising from a higher level of digital maturity of competing companies. This allows you to focus on your own internal areas that need optimization.<\/p>\n

    Ready to start your own SWOT analysis?<\/b><\/p>\n