Digital transformation is the integration of digital technologies to change business processes and provide a better customer experience. Some companies like Netflix, AirBnB, and Uber have successfully transformed their industries by leveraging technologies like mobile apps, websites, and video. While many executives see digital transformation as critical, implementing meaningful changes can be challenging due to legacy systems, siloed organizations, and risk-averse cultures. To start a digital transformation process, companies should educate leadership, understand the customer journey, identify business objectives, and focus on incremental improvements rather than trying to transform everything at once. Those that embrace digital evolution will be poised for growth.

1. By CHARLES ZWICKER
Special for Lehigh Valley Business
M
any of us have been inundated
with the pace and volume of
content around the concept of
digital transformation.
White papers, books and too
many blog posts to count have been written
on digital transformation.
But the concept is not all hype.
Something has changed over the last five
years which has brought this concept to the
forefront of business leaders.
n Is digital transformation a concept or a
reality?
n Is it a challenge or an opportunity?
n What do you need to understand and
why should you care?
Digital transformation is the change
associated with the application of digital
technology in all aspects of human society,
a definition rooted in a 2004 research
project by Swedish scholars Anna Croon
Fors and Erik Stolterman.
So, it’s very clear and evident: The
proliferation of technology into our homes,
workplaces and daily lives has changed our
society – for good and bad (how many of
us have a Pavlovian response to their phone
when it chimes?).
INDUSTRY REINVENTION
From a business standpoint, there are
many examples and success stories of how
digital transformation has changed specific
industries.
Netflix, AirBNB and Uber all are
successful examples of businesses that have
reinvented the markets they serve. All are
companies that leveraged digital technolo-
gies and advances to support a new way of
doing business and differentiate themselves
from competitors.
None of these companies existed 20
years ago and they did not essentially offer a
new product or service. But they radically
disrupted their markets by efficiently
leveraging mainstream technology to
provide a better customer experience.
Location tracking, mobile phones and
applications, highly optimized websites,
video and digital media all are proven
technologies that these companies
embraced to provide a better service in
today’s digital world.
LONG-ESTABLISHED BARRIERS
But does the emergence of new
technology outpace our ability to leverage
its benefits in our business processes?
Stated differently, do businesses have the
ability to innovate their models and
processes at the pace of technology
adoption to gain a competitive advantage?
A CMO magazine report last year
showed that 51 percent of senior executives
polled believe it is critical to implement
digital transformation in the next 12
months, and 27 percent of them rated
digital transformation as now a matter of
survival.
Yet, the Harvard Business Review last
year indicated “the greatest challenges
facing companies going through digital
transformation are top-down structures, an
inability to experiment, limited
change-management capabilities, legacy
systems, a risk-adverse culture and an
inability to work across silos.”
CUSTOMER-FOCUSED,
BUY-IN FROM ABOVE
Clearly there is enormous potential for
growth and success if we know the path to
navigate this new frontier. Here are tips for
beginning a digital transformation strategy:
(1) GET EDUCATED
Begin to become educated on digital
transformation strategies and models by
focusing on educational material developed
by consulting organizations and academic
institutions.
This material provides insight into the
process and pitfalls of developing a DT
process that will fit your organization.MIT
Sloan Management Review, Capgemini
Consulting and McKinsey are great
resources.
(2) GET LEADERSHIP
AND COMPANY BUY-IN
Successful DT does not happen bottom
up. It must be driven from the top.
Executive sponsorship and leadership
are essential to this initiative. This will
require cross-departmental support and
involvement.
Executive management needs to own
the initiative, frame out the reasons for this
commitment and be involved at the
strategy stage.
Once strategy moves to execution,
management needs to support the project
goals and tasks in terms of cost, resources
and time.
It is critical that the organization be
aware this is a change of corporate culture
and ongoing innovation – not a trendy idea
that will fade out over time.
(3) UNDERSTAND
THE CUSTOMER JOURNEY
Benefits of digital transformation
largely are tied to the customer experience,
and companies must focus on customer
journey mapping to identify areas for
improvement.
Mapping will provide insight into
consumer expectations and opportunities
for applying technology and process to
drive improved service and loyalty.
Involve customer feedback and focus
groups, identify areas for opportunity and
test your hypothesis with your customers.
(4) IDENTIFY
YOUR BUSINESS OBJECTIVES
Although DT is often discussed solely
in terms of the customer experience,
recognize that this is only a part of the
transformation (although a big one).
Focus time on identifying other
business objectives, including revenue
growth, new lines of business, workforce
productivity and operational efficiency. This
will help to better define focus and establish
priorities.
(5) NOT EVERY PROCESS
OR BUSINESS MODEL
IS A CANDIDATE
Recognize that digital transformation is
not an all or nothing strategy. Many
business processes may not be a candidate
based on cost or that existing systems are
working well in the business.
Don’t get caught in the trap that
everything must be transformed or that
technology can solve problems related to
poor processes or cultural issues. Develop a
process and culture of innovation to test
ideas quickly and at minimal investment.
EVOLVE AND EMBRACE
Digital technologies have, and will,
continue to transform and disrupt all
businesses and the markets they serve.
Whether it be in the ways that people
work and communicate, how business
processes are executed or the way that
organizations serve and support their
customers, companies must embrace a
process of digital transformation in
operations and culture.
Those that can evolve and embrace this
change will be poised for significant growth
in this digital future.
Charles Zwicker is senior
vice president at
Weidenhammer in
Wyomissing, a nationally
recognized marketing and
technology consulting firm
focused on optimizing
customer experiences and
business performance
through strategy,
innovation and the intelligent application of
technology. He can be reached at czwicker@
hammer.net or through LinkedIn at www.
linkedin.com/in/czwicker/.
THE AGE OF DIGITAL
TRANSFORMATION
Netflix, AirBNB and Uber all are successful examples of businesses that have reinvented the
markets they serve.
Zwicker
Businesses leverage mainstream
technology to offer a better
customer experience
WWW.LVB.COM TECHNOLOGY UPDATE 2017 9