In today’s ever-evolving environment, identifying opportunities for digital transformation is a high priority, especially amid market uncertainties and talent shortages. Savvy organizations understand that innovation, when properly applied, can help create significant value.

Consider, for example, a business-to-business supplier of construction materials that has relied on a traditional sales force to manage customers via phone, fax, and email. Digital transformation can be as simple as the introduction of a web-based interface, which would allow customers to check inventory and place their own orders online. An obvious yet effective innovation like this could lead to value-adds such as lower customer acquisition costs, improved customer relationship management, and reduced selling and marketing expenses.

Or, consider the value of increasingly ubiquitous technologies like artificial intelligence (AI), machine learning, and robotics and automation tools. With a proper strategy and preparation – and carefully considered guardrails – entities from manufacturers to housing providers to government agencies can use these solutions to automate and optimize repetitive tasks like scheduling, reporting, and document entry – freeing up limited workers to focus on more valuable, human-insight-required activities. 

Additional ways to create value, improve efficiency, and enhance growth by applying digital innovation include:

• Leveraging technology that enables more robust inventory management
• Installing smart devices and sensors that provide real-time data on environment and equipment health
• Implementing governance, risk, and compliance (GRC) technology to help optimize risk management, compliance, and internal audit processes
• Utilizing e-learning platforms for more efficient training and onboarding, empowering greater performance, quality control, risk management, etc.

By the same token, organizations without a digital strategy may see their value stagnate, or even plummet. Take, for example, a company that lacks vital data about its customers. Perhaps the company is running its operations from spreadsheets. It doesn’t have the digital platforms to track critical information and insights or know how much revenue is generated per customer. And, it has no way to effectively forecast future revenue based on customer segments. Thus, a potential acquirer may think twice about investing in the business, or a lender may question the company’s ability to sustain and grow revenue over the term of a loan.

In today’s digital environment, the most successful organizations capture information and can make sense of it all in near real-time. This can provide significant competitive advantage. 

For example, unstructured datasets, including data from social media platforms, can help unlock previously unseen opportunities and identify unknown issues. Some organizations are differentiating themselves by aggregating masses of information from blog posts and social media comments, then leveraging that data to improve their offerings. This enables them to quickly and accurately provide the products, services, and functionality that will have the greatest impact. 

With a good road map, organizations can begin reaping the benefits of digital investments quickly and cost-effectively. The key is to start small and be flexible. By applying the tenets of agile development – rapid prototyping, continuous feedback, and constant iteration – organizations can put a digital strategy into action and see a return on investment almost immediately. Successful digital transformations occur through continuous innovation – by changing operating models and capabilities in measured steps, over time, as resources allow. This agile approach empowers organizations to launch, learn, and relaunch digital initiatives by swiftly reacting to changing conditions and stakeholder needs. (For a starting point in planning your road map, see our article 9 checkpoints to ERP implementation success.)

As the digital world continues to disrupt, organizations that embrace agile digital transformation can radically change their operating models, meet demands head-on, and gain competitive advantage.