At best, all companies go through certain stages of digital transformation, and going through them they finally reach the finish line. Because it is a process that makes the organization deeply committed to digitalisation through its own experience.
However, just like any change, digital transformation does not occur from one moment to the next. No organization is transformed overnight from traditional to digital. This is a longer process that takes time, but is essential for maintaining competitiveness.
Brian Solis, a world-renowned independent digital analyst and anthropologist, identified six different stages of the digital transformation process:
1. Usual business
At this stage, everything is done in the traditional, familiar way. Workflows, customer management, technology, and even the business model work in the system proven so far, thinking that this is also appropriate digitally. The leadership here closes itself from introducing any more innovative technological changes.
2. Active presence
At this stage, management already appreciates the increased competition surrounding the company, which encourages them to move towards digital transformation. They are watching much actively and being more aware of digital opportunities and are more open to technological progress. They try to master digital skills and creativity and start experimenting.
3. Formalized
Here we are experiencing the process of digital transformation. The different departments (e.g. IT and marketing) work together on the development schedule. The relevance of the data which affect decisions comes to the foreground. Customer mapping, recruiting employees will take a new perspective and bring new digital and traditional solutions. They retain all technological innovations that have proved appropriate to the company’s objectives during the experimentation, and any not contributing to progress, will be rejected.
4. Strategic
Different groups recognise the strength and effectiveness of their collaboration. Together, they can exploit and create much more opportunities, as well as develop a well-functioning strategy for the digital transformation of the company.
5. Converged
That is, at this stage, they are already strongly approaching towards digital transformation. The responsible teams are committed to managing customer-oriented and business growth supporting strategic operations. After having finally formed the roles, models, processes and systems supporting transformation, the establishment of the organization’s digital infrastructure will follow.
6. Innovative and adaptive
A new ‘normal business’ is created. Digital transformation becomes an everyday part of the organization, as strategic managers and leaders recognize that the change is constant. They follow market trends and technological developments, the continuous integration of innovative solutions and opportunities plays a major role. A new digital and data-based ecosystem is emerging.
Although it is envisaged that these stages will occur linearly one after the other, but depending on the goals and resources the company has, they can be realized overlapping.
Walking through each stage, every part of the organization is developing. The leadership perspective, responsibility, business processes, organizational operation and culture are also being put into a new perspective. This helps a company to overcome obstacles more successfully and compete against the existing and emerging competition. To develop innovative products and services, maximizing customer satisfaction and employee commitment. The stages lead to such additional business advantages such as:
- learning about future marketing trends
- the initiative of organisational digital development
- strengthening the urgency of continuous change
- planning and development of new processes, goals
- introduction of new learning and training opportunities.
By the time a company gets to the sixth stage, the mindset of the members of the organization will have become completely digital. This means that people understand and accept that change is permanent and that these changes have to be constantly adapted in order to keep the company successful and profitable.
Author: Gabriella Pataki-Magyar
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