A decade ago, the software-as-a-service concept was a relatively new business model. Nowadays, it’s one of the leading market trends: if you know how to build a SaaS product, you will most likely have a successful startup idea. The next…
Digital Transformation Framework: Benefits & Strategies
Technology advances quickly, offering us cutting-edge innovations in all business areas. Users appreciate the latest and the best digital technologies that help to run a successful business — it puts them ahead of their competitors and delivers more value to their customers.
Therefore, such innovations also require a significant flow of investment to stay current and transform digitally. In 2022, global spending on digital transformation reached 1.6 trillion U.S. dollars, while global digital transformation spending is forecast to reach 3.4 trillion U.S. dollars by 2026.
The digital transformation framework provides businesses with a roadmap of transformation strategies that avoid guesswork in the process. In this article, we will look at what digital transformation frameworks are, why they are so important, and how to choose the best one for you considering their pros and cons.
The Devox Software team has extensive experience in custom web application development. We have a recognized stand on the market and a proven track record of completed projects. Our mission is to make digital transformation easy for our clients, as we can efficiently facilitate it. All they have to do is tell us the requirements.
In this article, we share our success cases of digital transformations across different industries.
What is digital transformation?
Digital transformation is a shift in business operations that involves technologies. As a result, this requires experiments and improvement of their existing processes. Around nine out of ten companies believe they will have to adjust their business model or have already done it to stay economically viable.
The importance of digital transformation goes beyond cost optimization. It changes how a business operates and the value it delivers to its customers. Digital transformation is essential for any company or organization that wishes to grow and provide improved products or services regardless of size or industry.
What is a digital transformation framework?
A digital transformation framework is a system of rules and a long-term strategy a business uses for guidance during the difficulties of digital transformation. Organizational leaders and consultants use a digital strategy framework to analyze and track the company in the current digital economy.
Such frameworks are the blueprint of how an organization progresses along a period of changes as business conditions evolve.
The importance of the digital transformation framework
The significance of a framework for digital transformation starts with a business’s need to embrace modern technologies to face disruptions. In this case, the latter means the rise of external developments that may change how an industry operates.
For example, the advent of streaming videos has seriously disrupted the movie theatre industry. This means that the digital transformation framework is a go-to resource that will protect businesses from digital disruption.
The benefits of a digital transformation framework
Businesses must stay ahead of the curve as digital transformation sweeps across industries. A well-designed digitalization strategy framework can address every aspect of the company and provide vital guidance during this period of change. With it, you cover all areas of the organization remain under control. In addition, change management within this framework ensures that all functions are digitally prepared for the transformation.
Below, we outlined the key benefits of a digital transformation strategy framework.
- Bringing innovation to the workplace: Whether it is a new mobile application or a web dashboard, it enables a company to improve its processes and enhance productivity. This way, it directly helps your business to grow as such technology saves employees time to focus on the things that matter.
- Transforming a company: The introduction of new technologies can significantly affect the organization. For example, collaboration tools are used by software engineers for projects, while tools for other departments increase their accessibility and efficiency.
- Supporting data-driven decision-making: Enhanced analytical tools improve business insights and help make better decisions. The best IT leaders improve their analytics and decision support with the help of AI and data science.
- Establishing clear benchmarks and metrics: The framework helps to create a shared understanding of the main goals and track the organization’s progress towards them.
The digital transformation framework can help ensure that no part of the business is covered. As a result, companies ensure they are prepared to innovate and transform for the future.
Examples of digital transformation
There is no ultimate digital transformation recipe to fit all situations. Nevertheless, you can discover one ideal digital transformation strategy for your unique case. Here we list examples of digital transformation strategies that can help you find the best ideas for your business.
Digital transformation in retail: Ikea
The perfect example of digital transformation in retail is Ikea. Having been an analog business for almost 80 years, Ikea decided to pursue a digital transformation in 2018. The scale of changes was major and touched all aspects of business operations within Ikea.
Ikea is a retail company. Thus, they started focusing on developing its e-commerce — setting up its online store besides having a traditional one. As a part of the business model, they transformed their stores into fulfillment centers. This has helped them easily manage the supply chain and operate two businesses from one location.
Technology has also been an essential step in Ikea’s transformation. They focused on developing analytics and algorithms and involved them in decision-making. As a result, it has tremendously enhanced customer experience and kept consistent branding across all communication channels.
Digital transformation in logistics: UPS
Considering the digital evolution, logistics is one of the industries that underwent the most significant changes. UPS is an international shipping and supply chain management company founded in 1907. However, it’s often considered that established businesses with a long timeline tend to need help embracing digital transformation.
In 2012, UPS started a digital transformation in logistics and operations. Their two main goals were to speed up the delivery process and introduce real-time package tracking. They began to use machine learning to set optimal routes for delivery drivers. This way, they increased drivers’ productivity, decreased fuel costs, and reduced carbon footprint.
Another example of UPS’ digital transformation activities is the introduction of multiple systems that leverage data and improve the company’s internal processes, such as sorting packages, loading trucks, etc. As a result, the company has now saved hundreds of millions of dollars and continues to be one of the world’s largest shipping providers all thanks to software development.
Digital transformation in software: Adobe
Adobe is a software company founded in 1982. It is famous for such flagship products as Photoshop (to edit images), Adobe Acrobat Reader (to read or edit PDF files), and Illustrator (to create vector-based illustrations).
Up until 2008, the company was called Adobe Systems and sold boxed software. However, it started to focus on digital transformation in 2008, making a risk from a license-based business model to a subscription-based model. This way, Adobe has become a cloud company, offering SaaS (software-as-a-service) solutions.
Digital transformation in Adobe happened on several different levels: new business model (SaaS), new technology (cloud), reevaluated service packages and positioning (focusing on enterprise clients), new HR management strategy, highlighting a data-driven operation model, etc.
This example is proof of two facts about digital transformation: (1) in times of digital transformation, substantial competitive advantage arises for a business, and (2) the whole organization should be involved in redefining how they are doing things.
All these examples of digital transformation are about the shift towards efficiency with the help of increased digitalization. Introducing software to tackle different issues often comes with convenience and cost saving for customers and companies.
For example, our team has developed all-in-one event management software for data-driven event decisions — Function4. Our goal was to remodel a custom ticket-selling website into a comprehensive event management platform. This way, we helped our client reach new target audiences while retaining loyal customers and keeping the relevance of the solution during the pandemic. Devox Software always makes sure to provide our clients the best support with digital transformation and make sure they go hand-in-hand with current technological developments.
5 tips on how to develop a digital transformation framework
A digital transformation framework creates a repeatable method of diagnosis, strategic planning and implementation. However, considering the wide variety of ways digital transformation can take, it is crucial to keep these tips in mind when developing a specific framework for your business.
Asses your current business situation
An effective digital transformation begins with an honest and comprehensive assessment of the present-day state of your business. Your strategic business goals, potential growth opportunities, and key performance indicators should be a part of this detailed assessment.
Understand your industry and study competitors
It’s essential to study how your industry operates and understand your main competitors. Therefore, there is a need to find out what digital solutions are you considering, and the latest technologies/tools that are implemented in the industry. Focus on detailed competition analysis will help better understand the market state and pinpoint opportunities that will position your business for success.
Set up an execution plan
Besides a clear roadmap for business innovation, the plan should also include initiative, resource requirements, and criteria to measure the results. You should identify all important development operations to build standard routines for your business to progress.
Create a realistic budget plan
Digital transformations often fail due to insufficient funds. Thus it’s crucial to ensure you create a workable budget. It should foresee all the occurrences and plan what happens in case the technology makes the current investment step out of date.
Assess your workforce
The crucial part of any digital strategy framework is a team of like-minded employees that have the right skill sets to work on a common goal and achieve the desired results. You need to plan all business areas and assess your team’s skills. This way, you will understand your current workforce and the requisite skills you need to implement your digital transformation methodology.
Master digital transformation with Devox Software
Digitalization strategy framework is a hot topic nowadays. It offers exceptional growth potential for organizations and individuals involved in it. Technology has changed the way services operate, whether it is advertising, marketing or customer service. That’s why it is crucial to embrace it and extend the service offerings to meet customers’ future needs.
If you wish to drive digital transformation in your team, our company can become your ultimate custom software development partner. We offer a broad array of professional web development services with a holistic approach. Our developers cover all stages of the web app development process, such as discovery, design, full-cycle testing, and launch. We aim to bring your product to market faster and remove any risks early by leveraging a proven model.