Exciting opportunity or just jargon?

What does 'good old' Wikipedia say? "Digital transformation is the change associated with the application of digital technology in all aspects of human society." Not sure about Wiki's grammar, but what does that definition mean to business?

A better definition might be: "The profound accelerating transformation of business activities, processes, competencies and models to fully leverage the changes and opportunities of digital technologies and their impact across society in a strategic and prioritised way."*

A bit long-winded, but closer to the mark if disruptive technologies are pulled into the mix - not more jargon - this a reality, think about it the next time you order a taxi by tapping your cellphone. Digital transformation has taken the business world and turned it on its head - it has revolutionised how companies do business and, above all, how their customers use it to interact with them. It is a reality that businesses today are being forced to embrace and plan for, or face being fired out of the market by competitors who are getting it right.

Various factors are driving digital transformation. Unquestionably changing consumer demand is at the top of the list. But, also changing technology and changing competition in a market where businesses capable of evolving and focusing on customers are proving to be capturing the lion's share of the market. Companies with the vision to transform, and in doing so, spot opportunities before they turn into imperatives for sustainability, are winning business and growing.

What many companies miss is the fact that the customer experience is a key factor and catalyst of digital transformation. Strategic planning that aims to apply digital technologies - across all aspects of the business - is crucial if companies are to meet ever-changing customer demands. Digital transformation is about removing customer effort and frustration, being relevant and providing hassle-free convenience.

In essence, it can be described as the ability to be agile and to look at the entire customer experience, not just the transaction.

Digital transformation fulfils a number of customer needs and solves many challenges, including business systems operating as a cohesive whole. It provides the ability to understand customers at an individual level and to seamlessly transact with the customers on their channel of choice, be it social media, online, mobile, in-store, etc. The goal of the business must be to provide consistent service experiences at all times and across all channels.

Achieving consistency and, of course, quality experiences across all channels can be viewed as a daunting task or a real opportunity for growth. Successful digital transformation requires the realignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touch point in the customer experience life cycle.

Digital transformation is about removing customer effort and frustration.

Culture shifts are required within companies with a move to reshaping how the business thinks and what it does to centre on the customer experience. The process cannot begin without the buy-in of the entire company, its people and processes, and the breaking down of silos within the company.

Businesses need to align their internal models, systems and processes with their customer experience goals. A customised vision for the company's transformation must be developed with the aim of attaining the level of digital maturity required to achieve a successful end result. Customer experience priorities and functions must be monitored throughout all touch points, and identification of where traditional and digital technologies need to be converged must also form part of the plan.

One crucial aspect of the digital transformation journey is the management of content and customer data, with new business processes being developed for the entire organisation to deliver in an aligned manner.

So, how does a company drive a transformation strategy that will get it to where it wants to go?

The answer to that is by implementing a 360-degree customer approach, which is enabled by digital technology. The customer experience includes every interaction with the organisation, across all channels - anywhere and at any time.

Technologies need to be deployed that create a seamless experience at all customer touch points. To enable this, an internal ecosystem must also be developed, with a focus on business processes, content and customer data management.

My next Industry Insight on digital transformation will reveal what really is the Holy Grail of business in today's digital age?

* Digital transformation: online guide to digital transformation - i-SCOOP