What is digital transformation?
Digital transformation has become a priority for companies, not only as a technological means, but also as a strategy to evolve in an increasingly digitized world. Freddy Vega, CEO of Platzi, sums it up simply by explaining that today everything is related to software: from how we order food to how we communicate. This change goes beyond technology; it impacts people, industries, cultures and even politics. We will now explore two cases of digital transformation, one successful and one unsuccessful, that offer valuable lessons about implementing this strategy.
Success story: How did a shoe company manage to digitally transform?
Maria, the CEO of a shoe design and production company, undertook a digital transformation process by thoroughly evaluating her procedures and business model. This was the path she followed:
- Use of Design Thinking: She implemented this methodology to identify problems and opportunities for improvement, a crucial step to integrate into the digital era.
- Developing an MVP: He used the Lean Startup methodology to create a minimum viable product that would allow him to understand his customers' preferences and generate value.
- Fostering a culture of change: He bet on continuous learning and training for his team, turning mistakes into valuable lessons.
The results were impressive: they improved billing processes, optimized internal communication with the implementation of an intranet and increased sales by 35% by offering personalization services on their website. In addition, by using big data, they were able to design products that better matched their customers' preferences, increasing the conversion rate by 10%.
What lessons can we learn from a failed attempt at digital transformation?
General Electric, in its effort to become a digital industrial company in 2011, failed to achieve the expected benefits despite initially innovating on performance. Here are some lessons learned:
- Misguided focus on the tool: They focused more on the technology than on the stated goals.
- Unbalanced investment: Focused too much on technology, leaving aside other critical areas.
- Neglecting people-centric strategy: A comprehensive strategy considers everyone: employees, customers and suppliers.
- Error management: Any digital transformation strategy admits mistakes, but an environment where mistakes are quickly learned from.
This reminds us that digital transformation does not guarantee instant success and demands a multifaceted, balanced and people-centric approach.
What recommendations to follow before a digital transformation?
Preparing for digital transformation involves more than incorporating technology; it requires a strategic and cultural vision:
- Digital tools are just a means: The focus is on how these tools contribute to achieving clear goals.
- Invest holistically: Don't limit investment to technology; other areas may need transformation as well.
- Focus on people: Customers, employees and suppliers are key to the process.
- Consider mistakes as learning opportunities: They are allowed and should be seen as platforms for improvement.
- Overall impact on the organization: Transformation positively affects sales, costs and profitability, but also influences organizational culture.
Adopting these tips is crucial to strengthen your company in the digital transformation process. Also consider Platzi's recommended courses on Design Thinking and digital product design methodologies to deepen your knowledge.
Finally, remember that change is not scary; it is an opportunity to innovate and thrive in an increasingly digital environment. Always keep an open mind and foster a continuous learning environment to ensure a strong future for your organization.
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