The exponential impact of digital transformation on your business
Digital technologies have an undeniable impact on people's interactions, work, buying behaviour and life habits. It is ingrained in almost every facet of life. This fact alone makes it imperative for companies to have a firm grip on how to use the digital universe to maximise their brand awareness and marketing goals.
American inventor and futurist Ray Kurzweil explains in his Law of Accelerating Returns that anything (a digital business included) accelerated by technology evolution will move at an exponential rate.
The problem is that businesses do not immediately experience an increase in the graph and misjudge the performance of the implemented tech or digital solution in question. That upward curve only occurs after months of hard work. According to Forbes: "digital transformation can improve stock prices and revenue in the long run". Companies will experience improved levels of growth – it’s just a matter of time.
Microsoft’s digital transformation took five years and resulted in a stock price growth rate of 258%. Compare this with Nike’s transformation that took two years with a 69% stock price growth rate.
What a single digital change does to businesses
If your business made a single digital adjustment, how would this change its course in terms of its product delivery, how employees accomplish their jobs and how you deliver your service to customers? Netflix’s move from a DVD mail-order business to a streaming service paid off, thanks to its advancement of digital technologies. The company’s success can be attributed to these three factors:
- The advancements in streaming capabilities accelerated Netflix’s transition to a primarily streaming service.
- The proliferation of smartphones, tablets and the introduction of smart TVs allowed the streaming service to be “always-on” for its customers.
- A change in viewing tastes because of Netflix’s advanced value proposition.
What this means for you
Digital transformation can help your business fully leverage customers at every touchpoint in the customer experience. When you digitise your business you can:
- Harness your customer networks and reinvent the buyer’s journey in line with their real behaviours – ultimately improving your buyer engagement.
- Build platforms that deliver a competitive advantage.
- Turn incoming data into assets that provide results in real-time.
- Become more innovative through the use of rapid experimentation.
- Help identify gaps in the market.
McDonald’s changed the way it delivered its food by integrating technology into its daily business operations. For instance, the company added digital kiosks in its stores. Customers expect a seamless, digital experience whenever they engage with a brand. McDonald’s understands that there’s value in investing in a digital strategy to provide appropriate support and how to make the customer’s digital experience more delightful.
The company’s latest digital venture is the introduction of McD Tech Labs – led in part by members of a voice-based startup. The aim is to use this tech to create faster, simpler and more accurate orders at the drive-thru window.
The work must go on
Digital transformation isn’t about plugging in a digital system and leaving it to its own devices. Imagine if the first digital innovators ceased to evolve, reached their peak of digital excellence and were satisfied. If this was their approach, they would have been out of business today. It’s also not about putting content out there with nothing to say or having no strategy to guide your efforts and back your every move.
It’s essential for you to improve your digital marketing engine to maintain a digital presence and see ROI. If you stall at any point, you will put your business at risk of falling behind in a constantly changing digital world. Remember Nokia? The company trapped itself in its own success because it became complacent and was not willing to refresh its approach. This allowed Nokia’s rivals to catch up and surpass it.
You will keep your brand at the forefront of digital when you stay up to date with the latest marketing trends and dabble in new software or tools that align with your business.
Propel your business to digital excellence with our team leading the way. Download our digital transformation brochure for a better idea on what your digital blueprint will look like.
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