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Digital Transformation – Emerging Business

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business transformationIn the last post <DIGITAL TRANSFORMATION> Part 1, click to get caught up!

click to get caught up!  The credibility gap, especially for executives who realize the importance of a social presence, is a critical concept you need to know!  However, digital transformation is not just about the face of the company.  Digital transformation is for every level of business.

Nothing is a greater priority than the digital transformation in 2020-2021 business. The reasons are clear: 

“Digital technologies are enabling radically new ways to deliver value to customers, changing competitive balance, and creating the new economics of markets.” 

Change is nothing new.  However the rate in which change is occurring is unprecedented. While new technologies may threaten established businesses, they can also create real tangible opportunities. There is a real concept that many companies are facing; it is “FOMO” (Fear Of Missing Out).  Many established companies are not worried about going out of business, but are more concerned about missing out on opportunity.

There are four types of digital transformation: 

  • Business Process
  • Business Model 
  • Domain 
  • Cultural/Organizational. 

Let’s be clear.  One or two of the above by themselves is not transformation.  There is symmetry and necessity in having all four.  Opportunity will be missed when companies are focusing on just culture or process.  It is the symmetry of all four that brings about transformation. 

Process Transformation. A significant focus of corporate activity has been in business processes, such as data, analytics, APIs, AI, and other technologies.  This will offer companies inherent value and new ways to reinvent processes. What is the goal? In many respects it is to lower costs, reduce cycle times, or increase quality and efficiency.  In short, doing more in less time with higher ROI.  KissFlow has a great breakdown of process transformation if you’d like to see a good visual.

Business Model. Companies that are pursuing digital technologies to transform traditional business models. Process transformation focuses on defined areas of the business, business model transformations are aimed at the building blocks of how value is delivered in the industry. The word value has become a “coffee house” term that is often misused by Executives and Consultants.  Value is the precise item that investors look for overtly and customers demand subliminally.

Domain Transformation.  An area where we see surprisingly little focus but enormous opportunity is the area of domain transformation. New technologies are redefining products and services, blurring industry boundaries and creating entirely new sets of non-traditional competitors  Often new market opportunities come and go.  Executives are very narrow in their approach, even in younger companies.  Often markets and transformation are not put together in the same sentence.  It would fall in business development or sales.  Emerging markets, however, drive transformation. 

Cultural/Organizational. Full, long-term digital transformation requires redefining organizational mindsets, processes, talent and capabilities for the digital world. Best-in-class corporations recognize digital requires agile workflows, a bias toward testing and learning, decentralized decision-making, and a greater reliance on business ecosystems. And they take active steps to bring change to their organizations. Cultural transformation is a PhD level class.  No single post can truly do justice to this change or shift.  Yet, when it comes to cultural change, it has to be top down.  Not seen as a have to, but a buy in of mission and purpose.

Cultural change in new and emerging companies like Better.com are making their mark in the mortgage industry.  Process may play a role.  It is the dramatic cultural changes that have driven their growth, process, and appeal.  Markets recognize it.  Customers recognize it.  Wall Street recognizes it.

It’s Time for Transformation

The complex and strategic nature of these opportunities require buy-in and balance.  Transformation is taking place in real time while maximizing your current business models and channels. By changing the traditional building blocks of value (perceived or otherwise), companies that achieve business model transformation open significant new opportunities for growth.

Smart Business Money: Do not let corporate terms dissuade your company from taking action.  These are not “fintech” terms or Fortune 500 terms.  This is not for revenues of $5MM or more.  These foundational principles are for any company, in any industry, and whatever stage you are in.  Implementation, action, and commitment from the top down. 

Digital Transformation — Bridging the Credibility Gap

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CONTENT IS KINGIf 2020 has taught us anything, your digital brand means more in this very moment than at any other time.  As companies, brands, and individuals are now tasked with a whole new world of being able to connect in rapid time.  This is called the credibility gap.

The credibility gap is that moment when a potential customer, investor, business partner is making a decision to call or do business with you.  They go to their smartphone or tablet, type into Google, then what appears and doesn’t appear is the credibility gap!

In business, it is not the business lost that you know about that is the issue.  It is the business you have never had an opportunity to compete for.  To have them see firsthand who you are and the problems you solve.  You never get a chance to tell your story.  It is that business that matters the most.

Digital Transformation is not about “black hat techniques” or SEO.  Digital transformation for most businesses or individuals is a series of critical but missing steps.  Let’s start first with the definition of digital transformation:

Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. This transformation is less about what you “want” and is predicated on what the customer or market is craving.  

Start with the basics, leverage what you can control:

  1. You need to be on 5 social media platforms using your name (as a individual), not your company.  You haven’t established yourself as a brand as of yet.
  2. You need to be producing minimum 1 piece of original content everyday.
  3. Use the SEO leverage of Twitter, Facebook, Instagram, Pinterest, and LinkedIn.
  4. Videos. 80% of the daily content consumed online is in video form. Get comfortable.
  5. Stick to business, even though it is under your name.
  6. Even though people love videos, content is still king.  Whether you sell a tangible good or service, in the end, Google and the consumer loves to see that you have relevant content.
  7. Google My Business.  I will go through GMB in future posts. However, Google My Business is one of the most powerful tools out there, and it is free!  You can do more for your business and brand with GMB.

Remember, if you are in the eCommerce space, you cannot and you will never compete with Amazon, for example.  Those “organic” search terms you want to be a part of are not relevant regardless of your industry (even if Amazon isn’t a competitor, I mention them as an example of the “biggest competitor in your space).  However, here is the advantage you have over Amazon: they will never compete with your name.  Win the Google war by owning every possible piece of real estate online with your name.  There is ZERO competition.  However, it guarantees you bridge the credibility gap.  You may be asking, what can digital transformation do for a larger company? With IT staff and process?  We will break down the elements of digital transformation for companies and entities that are looking to scale.  

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