During the past decade, the amount of data created, captured, and consumed in the world increased from 1.2 trillion gigabytes to 59 trillion gigabytes, an almost 5,000% growth.
Digital transformation is the integration of digitalization technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. Pursuing a digital data transformation strategy that uses real-time data may help your company attract more customers, open up new revenue streams, grow market share, take market share away from competitors, and produce cost savings and operational efficiencies.
However, many businesses struggle as they navigate the path to digital data transformation because they are unsure of where they stand, what challenges lie ahead, and how to advance to the next phase. How an organization responds to these challenges determines its standing along the digital data transformation journey. This journey is filled with organizations that can be identified as being in one of three stages.
Stage 1: Non-adopters
Organizations that do not dedicate time or resources to data analysis are usually unaware of the value that this information can provide to them, or they have chosen to ignore it. Businesses that ignore what’s in their data may find themselves constantly playing catch-up as the market changes around them. Eventually, these organizations will stumble or fail, and their growth will be stifled because they aren’t paying attention to what their data is telling them about their customers and their operations.
Non-adopters must work hard to identify the niches they want to establish and use as future foundations to their overall digital strategy as they progress along their journey.
Stage 2: On the road, but not there yet
Organizations in this stage understand the potential of data analytics and the cloud for cost management and are working out how best to implement a long-term strategy. They understand how data creates value for customers, investors, or shareholders.
However, complacency, fueled by an unfounded belief that you have it “all figured out,” can give competitors an opportunity to leap-frog your organization. Companies that are on the road to digital transformation need to seize the day and commit to being all-in. Trust your instincts and the work your team has done to date, and take the plunge.
Stage 3: Ahead of the curve
Organizations who are ahead of the curve when it comes to digital transformation recognize and believe in the power of data, and they are already using it to create value for themselves and their stakeholders or consumers. Resting on your laurels and letting off the throttle because you are the category leader, on the other hand, can soon lead to your organization playing catch-up.
Customers have high expectations for companies to use data to create a tailored, in-the-moment experience, so enterprises that have achieved digital data transformation typically have to work even harder to remain successful.
Not a one-and-done proposition
Continuous improvement is table stakes in business today. Likewise, as you advance on your journey to digital data transformation, keep in mind that this is not a one-and-done proposition. A successful, meaningful transformation requires an understanding that technological advances, when combined with societal shifts, can lead to disruptive innovation. That awareness is based on real-time data and the ability to evaluate it in order to make critical strategic decisions that will move your company forward.
Learn more about how to successfully begin or accelerate your business’ data transformation by downloading our latest whitepaper.