Digital Transformations integrate digital technologies into an organization’s strategy and operations. Focusing the entire organization on opportunities to merge the best of both digital and physical worlds, Digital Transformations examine each link in the customer experience chain, explore new technology links that can bolster the base business and weave them into holistic systems that create superior customer experiences. The process aims to profoundly extend competitive advantages and accelerate profitable growth.
Usage and satisfaction among survey respondents
What Digital Transformations do:
Managers begin by determining whether they must prepare for Digital Disruption or Digital Transformation. Digital Disruption ultimately destroys and replaces physical businesses with purely digital solutions. Management’s primary task, therefore, is to change the mix of business to compete effectively in a purely digital world. Digital Transformation, on the other hand, merges the best of digital and physical worlds into Digical® innovations that create wholly new sources of value.
Digital Transformations require that managers change not only the mix of businesses but also the capabilities of people in and around those businesses. The following actions help to maximize the chances that a Digital Transformation will succeed:
- Understand the degree of digitization in the current environment and assess future threats
- Develop a vision for how to engage the customer and achieve profitable growth using digital technology
- Design a plan to tap the best sources of value from digitization, adding links and strengthening linkages in the customer experience chain
- Mobilize the organization to win. Transform the approach to innovation, develop appropriate operating models and build a digital-savvy leadership team
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Companies use Digital Transformations to:
Digital Transformations engage every function in the organization. They use digital technologies to reinvent each link in the customer experience chain, including:
- New product and service development
- Marketing personalization to help customers discover and evaluate company offerings
- Product and service customization
- Purchasing processes
- Supply chain and fulfillment networks
- Product usage and service models
- Return and upgrade processes
- Product review and feedback systems
Five key trends emerged from Bain's survey of 1,268 managers.
Digical® is a registered trademark of Bain & Company, Inc.
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