With 90%+ of the US population currently under a “stay-at-home” order, we are increasingly hearing and seeing how the current pandemic crisis is forcing more digital adoption. For example, people are having birthday parties and happy hours on Zoom. Nearly every school has moved their classes online. More people are ordering their meals and groceries online. And many doctors are only seeing patients via video conference.

The business press is also highlighting how many organizations are fast-tracking aspects of their Digital Transformation plans in order to adjust to their new reality. This pandemic has clearly put many businesses in jeopardy, and poses a real threat to the broader US economy.

According to the US Bureau of Labor Statistics (BLS) it is estimated that fewer than 30% of US workers are actually able to perform their jobs from home. This is a massive gap relative to the current need, and we’ve all seen the stats. Jobless claims are sky-rocketing and a number of sectors (e.g. Travel and Hospitality) are essentially shut down.

While the current pandemic crisis has increased the demand for, and is bringing more exposure to the real need for more widespread Digital Transformation, this isn’t actually a new thing. But unfortunately, many organizations are pretty far behind the curve.

A quick query this morning on Google Trends shows that weekly search volume for the term “Digital Transformation” has steadily increased since April 2015 – and right now (not surprisingly), it is actually 700% higher than it was five years ago – [see graph below].

In addition, a 2018 Tech Pro Research survey, showed that 70% of the participating companies said their organizations either had a digital transformation strategy in place, or the were currently working on one.

With so many organizations undertaking Digital Transformation initiatives, one might actually think that we’re getting pretty good at it – but you’d be wrong.

According to McKinsey, fewer than 20 percent of digital transformation efforts actually manage to deliver sustained business benefits.

So why aren’t we seeing more Digital Transformation success?

Frankly, there are many reasons; however, I believe it basically boils down to a few things:

1)   There is a fundamental misunderstanding about what Digital Transformation actually is,

2)   There is no “one size fits all” playbook for Digital Transformation success, and

3)   Often, Digital Transformation is incorrectly thought of as a one-off initiative with an end point.

So what is digital transformation?

At its core, Digital Transformation is essentially a technology-led (or enabled) approach for creating and delivering new customer value and creating a sustainable competitive advantage in the marketplace.

Put differently, Digital Transformation is actually Innovation.

When you step back and think of Digital Transformation as innovation, it becomes somewhat easier to understand why so many organizations are struggling with their digital transformation efforts; that’s because every year, more than 80% of new (innovative) product launches actually fail. While true, this absolutely doesn’t need to be the case.

Over the past twenty years, there has been a ton written on the topic of innovation. And when you evaluate all of the case studies, two common themes bubble up in terms of things (or operating philosophies) organizations need to embrace in order to improve their odds of being successful.

1) Customer-Centricity – Placing the customer (and in particular, their unmet or underserved needs) at the center of all decision making, and focusing on creating new value by improving customer experience and increasing engagement. NOTE: According to Deloitte, customer-centric organizations are 60% more profitable than those that do not focus on the customer.

2) Continuous Improvement – An ongoing process for identifying and reducing inefficiency and minimizing waste – but not at the expense of business growth.

And finally for good measure, you actually do need to have an integrated strategy – with specific initiatives and tactics that can be measured in terms of financial outcomes, operational effectiveness and customer success.

Now is the time for digital transformation

It is said that necessity is the mother of invention (and/or innovation). Given the circumstances many of us are facing today as a result of the global pandemic, the case for Digital Transformation couldn’t be more clear.

Unmet and underserved consumer needs are abundant and increasing; and many businesses now find themselves is a situation where their current business model can no longer meet the needs of their customers.

So yes, now is the perfect time for you to start, or accelerate your organization’s Digital Transformation journey. But remember:

• Focus on your customers’ needs
• Apply a critical lens to your operational processes, and
• Start creating your organization’s new future