The seven action fields of digital transformation
From a manual evaluation of over 4250 topics/projects mentioned by 2590 study participants from 1850 organisations, the most important action fields that organisations can use as a guide in their transformation were identified. So, what characterises a competitive organisation? You should become active in these seven action fields.
1: Customer centricity
Organisations place a strong focus on customer orientation, personalised offers and digital communication and sales channels. According to the foundational study, more than half of SMEs are confronted with changing customer requirements. In order to remain competitive, organisations in the digital age are placing an increased focus on the customer experience and a constant customer orientation across all channels.
2: New technologies
The new digital technologies include platforms and apps. Many companies are testing the connection to industrial and consumer products as part of the Internet of Things. On the one hand, the surveyed organisations use new technologies for product enhancements or new service development. This includes the use of sensors, software and digital platforms. On the other hand, they are working with new technologies to make internal communication and collaboration more efficient, dynamic and effective.
3: Data and the cloud
All the activities mentioned so far require data and flexible data infrastructure that are accessible from anywhere. This is why organisations often invest in cloud and web-based solutions. Data is primarily about operational data management, data quality and the strategic use of data. Regarding IT infrastructure, the surveyed organisations invest most frequently in cloud solutions to optimise data management and storage, and to make company and customer information accessible regardless of location. Cloud solutions also support organisations in creating large databases in order to develop new digital business models and offers, or to gain insights via smart data.
4: New strategies and business models
The new digital technologies are driving organisations to rethink both existing products as well as services and business models. The aim is to question the quality of the services offered in order to provide new or expanded services. New platforms are used and strategic partnerships are entered into in order to develop innovative business models. Depending on the industry, organisations are forced to adapt their strategy and their business model for the digital world.
5: Process management
Processes should be increasingly standardised and made both faster and more efficient. Through the automation or digitalisation of processes, subtasks can be linked without media breakages (process discontinuities). According to the foundational study, the most important drivers of digital transformation are more efficient processes (i.e. digitalisation): this is the top priority of most of the surveyed organisations. As a result, the analysis, documentation and description of processes are coming to the forefront – now also among SMEs – in order to determine optimisation and automation opportunities.
6: Digital leadership and culture
Digital transformation is triggering a change process, which leads to an adaptation of leadership principles. New work includes creativity and innovation, a digital and mobile workplace and new organisational forms. More than two-thirds of the organisations surveyed in the foundational study state that digital transformation influenced their corporate culture. Organisations are required to promote a corresponding willingness to change and to deal with future management principles and modern forms of working.
7: Digital marketing
Through the availability and analysis of customer, product and sales data, a system is created by which the activities of sales and marketing are continuously optimised. This includes online platforms, e-commerce, social media, search engines, content marketing and marketing automation. Digital marketing enables organisations to market much more efficiently. They can use the platforms and digital marketing channels to communicate more easily and directly with their customers and to conclude transactions.
The seven action fields of digital transformation provide the most important strategic topics for the digital age. Before you get to know these in detail and with concrete questions for your organisation, you must first answer the fundamental question of how you approach your digital transformation. Should this be done selectively, or would it be better to develop an updated, holistic digital strategy?
The seven action fields of digital transformation provide a navigation aid for strategy development in the digital age (Marc K Peter, https://the-digital-transformation-canvas.com/)
In the next blog post, we will introduce action field number 1, customer centricity, as a starting point for digital strategy development in the digital age.
Self-Reflection Questions
Strategy questions for the digital age:
- Are these seven action fields of digital transformation currently addressed in your organisation’s strategy?
- How are you going to develop the necessary digital skills so your managers and employees can navigate these action fields?
- Are you focussing on a holistic, digital transformation strategy, or on selective strategic areas/action fields?