Remember the “old days” when you spent what seemed like hours at the bank, filling out forms and waiting in line just for a simple transaction? Today, a financial institution that doesn’t offer a mobile app that allows you to check your balance, transfer funds, and even deposit checks – from your couch, car, or wherever else you may be — probably won’t be in business much longer. And banks that do must continue searching for ways to build on their earlier innovation to encourage customers away from their competitors. Banking is just one of the more ubiquitous examples of how digital transformation has and continues to revolutionize how customers interact with businesses — and how those businesses that don’t embrace such change fall behind and fade away.
Simply put, digital transformation is leveraging digital technologies to fundamentally change how an organization operates and delivers value to its customers. While the concept may sound complex and daunting, how your organization approached it successfully doesn’t have to be. By focusing on six key strategy pillars, any organization can define, embark, and succeed on a digital transformation journey that unlocks new opportunities and delivers real value.
1. Define your “North Star”: Setting clear objectives and strategy
Every journey needs a destination. For digital transformation, this means defining clear objectives aligned with your overall business goals. Like the banking industry, organizations in any sector must define clear objectives for their digital transformation efforts.
- What are your current pain points and challenges?
- How can digital technologies address these challenges?
- What are your long-term goals for your organization?
- How will digital transformation help you achieve these goals?
Answering these questions will help define your North Star and ensure your digital transformation efforts are focused and aligned with your overall business objectives.
2. Champion transformation from the top down and the bottom up: Securing both leadership and employee support
Digital transformation is not just an IT project to deploy software. It’s an often-massive cultural shift that requires buy-in from all levels of the organization. Just as securing strong leadership support was crucial for the success of mobile banking, leaders within any organization must champion their digital transformation initiatives by:
- Clearly articulating the benefits to the entire organization and its customers.
- Leading by example by using new technologies themselves.
- Allocating the necessary resources to support the initiative.
- Empowering employees with training and support.
- Creating a culture of innovation and experimentation.
Having top-down support for a digital transformation initiative creates an environment where employees are engaged and empowered to drive the transformation process forward. Culture eats strategy for breakfast, and if change doesn’t take hold among employees, a transformation project will be doomed to failure.
3. Focus on the why and how: Prioritizing user needs
Even those mobile banking pioneers couldn’t implement every feature a user might want or need at once. However short- or long-term your digital transformation objectives are, you’ll have to consider how your employees or customers interact with your organization and prioritize their needs. Here’s a three-pronged approach:
- Deep user research: Before implementing anything, understand user needs and pain points through surveys, focus groups, or customer journey mapping.
- Design the UX for delight, not just efficiency: Go beyond efficiency by streamlining workflows, personalizing journeys, and offering new digital touchpoints (i.e., mobile apps and chatbots).
- Measure satisfaction: Continuously track metrics like NPS and CSAT to identify areas for improvement and ensure ongoing user satisfaction.
By prioritizing user needs throughout digital transformation, you can develop user-friendly and engaging solutions that yield increased satisfaction and loyalty, the benchmark of successful digital transformation initiatives.
4. Embrace new technologies — but be strategic
The allure of the latest innovations is strong, but you have to focus on identifying technologies that address specific needs and demonstrably improve operations or customer experience.
- Identify the right tools for the job: Don’t chase trends. Choose technologies based on demonstrable value.
- Conduct Proof-of-Concepts (PoCs): Before widespread adoption, test new technologies to assess feasibility and value proposition.
- Foster a culture of innovation: Encourage experimentation and exploration of emerging technologies to gain a competitive edge — and celebrate successful experiments.
By embracing new technologies strategically and fostering a culture of innovation, you can leverage the power of technology to drive digital transformation and digital adoption forward — and achieve your business goals.
5. Cultivate a culture of change: Building the human side
Digital transformation is not just about technology; it’s about people. Successful initiatives require a culture that embraces change and empowers employees to thrive in the new digital landscape.
- Championing change management: Proactive communication, addressing concerns, and providing training help employees understand the “why” and adapt quickly and successfully.
- Fostering collaboration and communication: Break down silos and encourage collaboration across departments. Open communication channels ensure everyone is aligned.
- Investing in upskilling and reskilling: The digital landscape is changing, so equip your workforce with the skills they need to thrive in that new environment. Consider using digital adoption solutions with in-app guides, training, and support as alternatives to traditional training methods.
By cultivating a culture of change, collaboration, and continuous learning, organizations can ensure greater digital adoption and a smoother transition during digital transformation, empowering employees to become active participants in the process.
6. Define, measure, repeat: Tracking progress for success
Digital transformation is a journey, not a destination. Continuous monitoring and measurement of your initiative’s progress are crucial:
- Define Key Performance Indicators (KPIs): Set KPIs aligned with your objectives, such as user adoption rates, operational efficiency gains, or ROI for specific initiatives.
- Report on progress and communicate results: Regularly track KPIs and establish a system for reporting progress to stakeholders. Transparency maintains momentum and secures resources.
Effective communication with digital transformation stakeholders can:
- Maintain alignment and secure ongoing support from leadership.
- Identify potential roadblocks and facilitate course correction.
- Boost employee morale and engagement by showcasing progress.
By always being transparent about the progress and impact of digital transformation initiatives, you can maintain momentum and secure the resources needed to achieve their goals.
Charting your transformation course
Will digital transformation continue to revolutionize mobile banking, and if so, how far will it go? While no one can answer for sure, it is but one example of the transformative power of digital technologies. By embracing the six pillars outlined above, you can equip your organization with the roadmap it needs to navigate its own digital transformation journey.
Want to learn more about how Pendo helps digital transformation initiatives succeed? Get a custom demo here.
