What The Heck Does Digital Strategy Actually Mean?

If you’ve been in business any length of time, you’ll have come across the concept of “digital strategy,” sometimes called “digital innovation” or “digital transformation.” But unless you’re technically-minded, you don’t usually know what it means. And that can make getting your head around it all the more challenging. 

You should note that digital strategy isn’t just one thing. Furthermore, it comes in varying levels of sophistication. Some companies operate very basic digital strategies, while others take them much more seriously. 

A digital strategy is necessarily a nebulous term that incorporates a vast number of activities. But if you were to distill it into a single sentence, it would be this: figuring out how to use new technologies so that your company wins. 

At a high level, it sounds deceptively simple. Still, it is unbelievably complicated when you come to thrash it out. For some companies, digital transformation means moving to paperless reporting or creating a dashboard from which employees can access all customer information. For others, it means rebuilding the business from the ground up using new technological capabilities. 

Many companies also now see technology as a way to “lock-in” their market advantage. Airbnb managed it with holiday rentals. Amazon did it with e-commerce. And now many other firms are wondering whether they can do something similar in their fields. The ultimate strategy, therefore, is proactive, not reactive. It’s a significant difference. 

What Elements Go Into An Effective Digital Strategy?

Definitions of digital strategy transformation are notoriously amorphous. If you do a quick Google search of the term, it’ll spit back articles discussing big data and analytics, technical consulting, updating websites, and data center virtualization. 

None of these, however, really captures what we mean when we talk about digital strategy transformation. And that’s fundamentally the root of the problem. A lot of people in the business world don’t have a good idea of what it is. It’s not just random jargon. It means something and has a practical impact on business. 

Let’s break down the terms “digital,” “strategy,” and “transformation” individually and then create a definition of digital strategy transformation that brings them all together. 

Digital refers to communication between devices using binary. Today, though, it has become a byword for anything that contains a microprocessor or indirectly uses one. 

Strategy in business is the art of winning. It’s the ability to take a particular stance on a market issue, create objectives related to it, and then execute. It’s different from trial and error because it is a purposeful effort to outfox your competitors. 

Finally, transformation is the idea that businesses can change in fundamental ways. Before digital technology came along, people used to talk about how companies could transform their cultures or pricing plans. Usually, it involved something critical and fundamental. 

Therefore, digital strategy transformation is the idea of using technology in a fundamental way that allows you to win. You’re not just doing basic things, like automating your social media posts using an app. Instead, you’re looking at the technological landscape and building your business around it. In other words, you’re taking an entirely different approach. 

What Types Of Digital Transformation Are There? 

There are multiple different types of digital transformations that you can undertake. And how you perceive them depends on your position in your enterprise. 

Business Model Digital Transformation

This type of transformation is usually the one that the CEO leader takes. They want to know how new technology will change the underlying way they do business and how they might have to change their operations. Usually, it involves wholesale shifts in the company’s processes, policies, people, technology, and culture. 

The good news is that many companies have done this in the past, and are currently in the act of doing so in the present. Perhaps the best examples come from retail. For instance, clothes store ZARA saw the writing on the wall a long time ago - e-commerce was the future. Therefore, the firm immediately set about creating a compelling website and a second channel for customers to buy products. Interestingly, the brand very much sees itself as an online offering, similar to ASOS, instead of a traditional brick-and-mortar retailer. For ZARA, physical premises were just a means to an end. 

Business model digital transformations are perhaps the most fundamental of all of the other types - which we discuss below. They involve the further-reaching changes and often require you to bring in entirely new teams. 

Operational Digital Transformations

Operational digital transformation is all about making day-to-day activities of the business more efficient. Note here that we’re not talking about changing the business model in some fundamental way. This notion is more akin to the fourth industrial revolution. Companies aren’t changing how they take payment or the type of business they run. Instead, they’re doing what firms have always done - use technology to lower their costs. 

5G is the most recent catalyst for this kind of digital transformation. As cloud infrastructure brand Oracle points out, the new communication standard is a game-changer. It offers a level of flexibility and reliability unavailable via current 4G technology. 

The Oracle 5G Service Communication Proxy - a service that helps make 5G more functional - is already impacting the enterprise level. Companies are using it to create secure, cloud-native environments. And that’s driving 5G adoption. 

In this case, digital transformation involves using 5G in novel ways. For instance, it’s not easy to monitor equipment across multiple sites and feel that to a central cloud network in real-time. But with 5G, the actual communication element becomes relatively simple. A central control program could use AI to parse incoming information and then send out optimal instructions via the cloud without any human involvement. 

Cost-Cutting Transformations

Digital technology can cut costs dramatically, and many companies are taking advantage of it, under the moniker of digital strategy transformation. When going through these kinds of changes, firms will often talk about using the “hybrid cloud” or “virtualizing data centers.” They also suddenly become enamored with software-as-a-service options.

Note here that, again, the primary driver is operational. You’re taking an existing business model and sprinkling it with shiny new technology that offers lower costs. You’re making significant changes, but you’re not shifting the focus of the company fundamentally. 

Some examples of this in action might help. During the current coronavirus crisis, many companies have stopped using offices and moved their operations to the cloud. Workers now tap away on their laptops in their homes instead of traveling to some central office space. 

When you think about this in more depth, you soon see that it is a species of organizational transformation. The old model was to use a physical building to bring workers together to work on projects. The new idea is to scrap that entirely and rely on cloud apps. 

Another cost-cutting transformation is reducing headcount. Currently, a lot of organizations have large in-house IT teams that look after the running of their networks. But these are mostly obsolete except for the most technical of enterprises. With managed IT, most companies can eliminate these vast costs and rearrange their entire network and app stack. Plus, third-party providers usually do a much better job of keeping everything running and secure. They monitor your network in real-time. 

Customer-Led Transformations

Companies like Apple and Salesforce taught the business community that nothing is more important than serving your customers' needs. If they aren’t happy, your bottom line soon suffers. 

Customer-led transformations are all about improving the customer experience. The concept is far wider-ranging than you might imagine at first. 

In retail, for instance, this transformation usually involves moving the business online. Or, at the very least, connecting e-commerce and in-store experiences in practical ways. 

In other companies, like estate agents, it means improving customer relationship management. Sometimes, this means adding CRM solutions that allow one agent to pick up where another left off. The most impressive solutions are omnichannel, meaning that they collate customer data across communication methods. 

Some companies have a culture problem and need to change that instead. Pushy sales tactics, for instance, might be putting off customers. Or systemic abuse could be leading to high turnover and lost revenue. 

Some companies need to overhaul their online user experience. Many firms operate outdated websites and have never sought help from experienced web designers. 

Conclusion

Digital strategy transformation is a complicated topic. So if you haven’t understood every word in this article, then it’s no reflection on you. It’s just a tricky subject. 

Whenever you see the word “strategy,” think “winning.” When you couch it in these terms, it is much easier to see what people mean when they add other words, like digital and transformation. 

Transformations usually involve multiple features of your business. It’s not about tacking something digital onto existing processes. It’s about doing something differently, owing primarily to the capabilities of the underlying tech. At root, you're looking to solve problems that previously seemed intractable. Or you are enhancing your abilities to provide an edge over your competitors. 

Reducing the Liability Risk Within Your Business With These 4 Essential Steps

Veronica Baxter, LarryPitt.com

Most business owners aren’t aware that they already think about risk management. You have if you’ve asked yourself any of the following questions:

●      How do I limit my business’ exposure to lawsuits?

●      How can I ensure the safety of my employees in the workplace?

●      How do I ensure the safety of customers or clients on business premises?

●      What if we are sued for selling a faulty product?

●      What if we are sued for manufacturing a defective product? 

Each of these concerns can be addressed and possible effects mitigated with a simple, four-step risk management process. Answer these four questions for your type of business, and you’ll be on your way to effectively managing the risk of loss.

1. What are the sources of possible loss for your business?

You and your management team should meet and discuss what aspects of your operations, products, or services expose your business to the risk of loss.

Workplace Safety

Of course, you are concerned about the safety of your employees, but beyond caring for their well-being you should also consider them one of your most valuable assets and protect their ability to work for you accordingly. In other words, if an employee is injured at work, that affects not only their quality of life but your access to that employee’s experience and skill.

Most states require that companies with more than a few employees carry workers’ compensation insurance. This is the first essential step to protecting employees, but how do you protect your business from the loss of the work of an injured employee?

You and your management team should brainstorm all possible scenarios for injuries at the workplace. If your business is manufacturing, then you must keep machinery in good running order, provide training on the operation and maintenance of equipment, and follow OSHA standards for safety.

Even retail, service, and storage businesses need to keep their space free from hazards. Many precautions are simply common sense. For example, mopping the floor just prior to opening the doors is probably not a good idea. Same for stacking twenty-pound cardboard boxes ten high in a warehouse. Establish cleaning and stocking practices that don’t place employees in the way of possible harm, and encourage employees to come forward if they notice a possible hazard.

Premises Liability

If vendors or the public visits your business, for example, in the case of retail sales or auto sales, or providing counseling, legal, or accounting services, you must carry liability insurance. Other than that, you and your management team should tour and inspect your facility for potential hazards regularly, and encourage employees to report any possibly hazardous condition.

If you are a car dealer, is the car lot free from potholes and other tripping hazards? If you are a law or accounting office, is the sidewalk leading to your entrance clear of obstructions? Are there handrails on ramps or stairs?

Each business will have its unique challenges in keeping its facility safe for visitors, and safety considerations may shift with the changing seasons. Keep on top of what must be done to provide safe access to your goods or services.

Product Liability

Obviously, the first step in minimizing risk exposure in these areas is to make the best product you can make. Still, if pre-market research and testing fail and a problem arises, your business may find itself a defendant in a product liability lawsuit.

Not only manufacturers can be liable for a defective product - distributors can too. Whether there are design defects, manufacturing defects, or marketing defects, any of these can ruin a business.

Of course, if you manufacture or sell products, you have product liability insurance. An additional way to mitigate the risk of loss is to review the products you make or sell with a product liability attorney to anticipate whether any problems might arise.

Liability for Ineffective Service

Again, the first step in reducing exposure to the risk of loss is to provide the best service you can provide. For many service-based businesses, this will involve initial training or education, and ongoing annual training requirements. For many services, malpractice or errors and omissions insurance will is required

2. Analyze all available risk management techniques.

Depending upon what type of business you have, you can employ any or all of the following:

Risk Avoidance

Risk avoidance is just avoiding risky behavior, or adjusting procedures, practices, or operations to prevent hazards. This involves training and monitoring employees to ensure compliance.

In some businesses, this is just impractical. Businesses such as construction, long-haul trucking, mining, and heavy manufacturing are inherently risky.

Risk Reduction

For businesses that must assume some risk, that risk can be mitigated by ongoing training and monitoring of employees, proper certifications, and regular inspections. Products tan be tested for quality-control.

Risk Transfer

Risk transfer can take place by carrying insurance, or through contracts with customers or clients, or your business partners in the chain such as retailers, manufacturers, or original equipment manufacturers (OEMs). It is possible to shift liability elsewhere with hold harmless or indemnification agreements.

Risk Retention

When business operations are inherently hazardous or the costs of mitigating risk or shifting liability are prohibitive, your business absorbs liability. This will come with an attendant increase in the cost of your product or service.

3. Implement the appropriate techniques.

When you and your management team have weighed options and decided on techniques that make sense for your business, you must create a plan or implementation. You might appoint a manager to spearhead whatever training and other changes must be made.

All employees must be kept apprised of expectations regarding your risk mitigation plan. Putting the plan in writing and posting at the workplace is a good idea. Another proven technigue to manage risks is to invest in insurance policies. Insurance plans protect individuals and businesses against significant financial loss by ensuring financial compensation to help the insured recover. Purchasing insurance also reduces the financial impact of business interruption and damage to facilities to assets. Several companies including Primerica offer life insurance, property insurance, and other plans for businesses. It would help if you looked at the ratings or online reviews for various insurers to help you find a good insurance company to manage your risks. Additionally, ensure you provide the right details when applying to prevent problems with the claims process.

4. Monitor the success of your risk mitigation program.

Every business owner should monitor and periodically analyze the effectiveness of their current risk management techniques. If you determine your chosen technique(s) are not working, or are not worth the cost, you can then pivot and try something else.

If you are having trouble with any aspect of managing your business’ risk of loss, consult with your insurance company. They likely have risk managers to help you.

Build Your Business Upon The Rock, Not The Sand

There’s a tendency in the modern business media to suggest that you can whip up a sustainable company on a whim and make fabulous profits. Unfortunately, that’s rarely how it works. While you do get the odd startup fueled by viral TikTok videos, these are few and far between. Most require meticulous preparation and planning to become successful. Thus, unless you lay the groundwork, your business will never thrive the way that you want it to. 

So what does it mean to build your business on the rock, not the sand? Let’s take a look. 

Pillar #1: Becoming A Consumer-First Company

Businesses have a variety of strategies that they use to win business and beat out the competition. Many, for instance, plow all their resources and effort into building a product that outshines everything else on the market. Others put their values first, believing that these will carry the day and gain the loyalty of customers. 

The truth, though, is that neither of these strategies is ideal, especially in the modern world. The best companies are often those that self-describe as “consumer-first” or “customer-centric.” These enterprises focus solely on meeting the needs of their audience and working from there. They don’t begin with product design or a service agreement. They start with the basic pain that customers want them to take away. 

Pillar #2: Getting Adequate Protection

Companies can make a lot of money, but they can also lose a lot, especially if they don’t take the necessary precautions. Unfortunately, we live in a world where businesses are liable to make mistakes that cause severe damage to third parties. Products can be a choking hazard for babies; wet floors in company premises can cause people to slip and fall; firms can fall foul of regulations. The risks are seemingly endless, as this discussion about business insurance from Simply Business makes clear. 

Companies, therefore, need to ensure that they cover all bases before they begin trading. The last thing you want is to set up a company, only for it to go under because you didn’t take out the necessary insurance. Look at the type of coverage you need for your particular activities and make sure that you get it. 

But it’s not just insurance either that a business needs when it comes to protection; you’re also going to have to keep in mind that there's legal protection, too, such as if you get injured in the workplace, if an employee does, or even a customer. In general, you’re going to have to have a solid connection with a lawyer, such as the team from Ritchie Law Firm. In general, it’s up to you what type of lawyer, but you do need a lawyer you can actually have a connection with (or at least a firm). So do some searching, read reviews, and choose one wisely that can help represent you and your business if things were to ever go sour.

Pillar #3: Hiring High-Quality People

Startups know that they live and die by the quality of their people. Often, the actions of a single person can make all the difference between the business achieving success and falling flat on its face.

Entrepreneurs, therefore, will often spend many years accumulating people, carefully seeking out the best talent. They nurture relationships with them, give them purpose, and help them fulfill their potential. 

Unfortunately, this is a process that takes time. Highly talented people are few and far between, so when you find one, you don’t want to let them go.

These are the three most important rocks on which to build a business, although there are more. But once you have these fundamentals in place, you’re ready to take your enterprise to the next level. 

Overcoming The Challenges Of A B2B Company

Of all the kinds of business you can run, running a business-to-business company is one of the most exciting of all. That’s because there are generally many more opportunities for such a company that you will be able to explore compared to a normal customer-focused one, and that is something that you will probably find quite intriguing as an entrepreneur. But along with those opportunities come a great many challenges, and you are going to need to make sure that you can match those as well as possible. In this post, we are going to look specifically at what you might need to do in order to match the challenges of running a B2B company. As long as you can do that, you should find that your business is going to get ahead much more easily and swiftly.

Pic Credit - CCO Licence

Finding Your Clients

One of the most important things that you are going to have to do with this kind of business is to find your clients in the first place, so that you can advertise to them. How can you make sure that you know where to look in order to find your potential clients, and can you be sure that you are looking in the right place? It takes a lot of patience, and a keen understanding of how this all works.

To make it a little easier, you need to spend time thinking about where it is that your clients might be waiting. That means knowing what they are looking for - and this is where the old classic technique of market research comes into play. You need to know what it is that your clients want if you are to work out where they are, so that is an important early step for a business such as yours to take.

Pic Credit - CCO Licence

Creating Quality Social Content

It’s no surprise that a big part of getting your B2B services out there is going to be ensuring that you are marketing through social media channels. If you don’t do that, then it is much less likely that you are going to have the kind of success that you are looking for. However, it is a challenge to do this in the way that you would hope, and you might soon enough discover that you need to try and go the extra mile in order to get ahead with your social media marketing. That means creating quality content for those channels, and that is something that can be a real challenge in itself. With practice, however, you should get there more easily than you might have thought possible.

Good social media content is highly shareable. As long as you produce content that people share, you will find that you can much more easily get your business ahead on the social channels, and that is something that will bode well when it comes to trying to bring in as many clients as possible.

Mastering Digital Marketing

Much of what you need to do with this kind of business centers around the world of digital marketing. As long as you are marketing your business in the right way, of which the social channels we have just mentioned is just one kind, then you can be sure that you are going to get those clients. So the more you master digital marketing, with all its entanglements, the better. But what can you do to make sure that you improve your chances with digital marketing in a top-down sense?

Pic Credit - CCO Licence

Arguably one of the best moves you can make here is to seek out the help of a digital marketing agency, particularly if you can find one which specializes in helping B2B companies like your own. There are many of these that you can look to if you want to try and improve your digital marketing in that way, and in fact, it is wise to try and do this as early on as you can. Bear in mind, if you are hoping to bring your business to a place you need it to be as soon as possible.

Managing Lead Sources

The truth is that getting hold of your leads is only one part of the battle, and not even necessarily the hardest part. As well as that, you need to know how you are going to be able to manage those lead sources once you have them, and then continue to get them. That is a lot of work, but it is one of the most essential things that a B2B company needs to be able to do well. If you fail at this, then it might mean that you get hold of lots of leads only to allow them to fall through your fingers, which will only end up feeling like a waste of all of your resources, not least time.

To improve your management of leads, you need to generate lots of traffic first and foremost, and then look into how you can automate top-of-funnel efforts so that this can carry on without you having to do much at all. That is not only easier for you, but it is also actually going to be much more effective anyway, and certainly will result in a successful business. That is absolutely the best way to manage your lead sources.

Communicating Value

When you try to land sales, you have a number of things that you need to try and do which can be particularly hard. One of the most important, and trickiest, of these, is to make sure that you are able to communicate value in the way that you would hope. A good sales team will have an instinct as to how to do this, but you might need to train them. In any case, it’s something that you are going to need, or else you won’t really get anywhere at all in your business.

The best thing to bear in mind here is that you have an inherent value in what you are offering. So make sure that you know what that is, and that you are doing whatever you can to express it as strongly as possible. If you can do that, it should mean that you end up with many more clients in no time. Your sales team should work on this most of all if they are trying to succeed as well as possible.

If you take care of these challenges, your B2B company should have a brighter future in no time