Why Digital Transformation Is Crucial For Business Growth

A successful digital transformation will enable your business to improve employee efficiency, increase customer engagement, move towards your sustainability goals and more. 

In 2023, with the rise of remote and hybrid working and significant technological development, it is more important than ever to ensure that your business can make proper use of digital. In particular, embracing digital transformation will allow your business to better realise the benefits of hybrid working - an essential component of running a business in the modern world. 

What is Business Transformation?

Business transformation refers to any large-scale or comprehensive change in how a business is run. The goal of business transformation is to enhance performance - to make the business more efficient, to better enable it to survive and thrive in the long term. 

Key aspects of business transformation can include: 

• Analysing processes and identifying inefficiencies 
• Reevaluating priorities and shifting focus to core areas
• Seeking feedback from customers and workers

Any business transformation is a major strategic decision. And it can involve rethinking fundamental aspects of how you operate. But the potential benefits can be huge.

What is Digital Transformation?

Digital transformation, then, refers to a business transformation that focuses on the use of digital technology. Crucially, a true digital transformation aims to integrate digital technology at every level of a business, from operations and customer interactions to business models and strategies. 

Digital transformation involves using technologies like: 

• Cloud computing
• Artificial intelligence
• Big data analytics
• The internet of things (IoT) 
• Automation 

While every business will find unique ways to use these technologies, we can identify some general applications to help you understand how they can benefit you. 

Cloud computing, for example, can reduce the energy use and cost burden of storage. Artificial intelligence and big data analytics, meanwhile, can give you a far deeper insight into your processes and performance, helping you to identify inefficiencies and develop solutions. 

Why is a Digital Transformation Strategy Important in 2023?

Now more than ever, it’s crucial that you have a digital transformation strategy if you want your business to thrive. 

Several factors combine to make 2023 a crucial moment for digital transformation: 

• Continued technological development at breakneck pace - from generative AI like ChatGPT to machine learning systems capable of capturing and analysing huge amounts of data. 
• The change in ways of working, made possible by technology like remote collaboration and video editing, and accelerated by the Covid pandemic.
• Rising expectations on the part of both workers and customers. 
• The increasing importance of concerns about energy use and sustainability.

In this context, your business needs to adapt or risk falling behind. Embracing digital transformation will allow you to gain a competitive advantage: to deliver in new and innovative ways, and to respond quickly to market demands. It offers the chance to massively increase operational efficiency, allowing businesses to reduce costs, eliminate bottlenecks and enhance productivity. 

Customers increasingly want unique, personalised experiences, and they expect to be able to engage with businesses wherever they are. Workers, meanwhile, want their employers to allow for flexible and hybrid working, and they expect businesses to have the technology to allow for this. Digital transformation will help make sure you’re in the right position to access the benefits that can come with hybrid working.

How to Approach a Digital Transformation Strategy?

If you want it to be successful, you need to make sure your digital transformation strategy is well thought-out. This means paying attention to the process and planning ahead. 

For best results, make sure you: 

Define the Goals You Need to Achieve 

As with any strategic decision, the first step in preparing for a digital transformation is to identify and clearly define what you want to achieve from your transformation. Be as specific as possible, and try to keep these goals measurable: you want to be able to analyse progress towards your goals as precisely as possible, so you can adjust your strategy later on if you need to. Determine which technologies you will use to achieve your goals and how you will use them. 

Define Your Data Governance and Security Plan

No matter what your specific goals are, it’s very likely that your digital transformation strategy will involve gathering and analysing a lot of data. For this reason, it’s crucial that you put together a plan for how to handle that data. Make sure you’re compliant with any relevant regulations, including privacy and security rules. 

Appoint or Hire Transformation Advocates

As with any business transformation, digital transformation requires clear leadership and division of responsibility. Don’t assume that you can just add to the workload of your current workers. Instead, set clear rules and expectations for those involved in managing the transformation. If possible, consider hiring professionals with expertise in the specific forms of technology you’re intending to use. 

Conduct an Audit of Your Tech and Data

Before you can begin your digital transformation, you need a clear picture of how your business uses tech and data now. Evaluate your existing infrastructure and capabilities, and look for areas for improvement. This will help you prioritise your investment and identify potential risks, and will allow you to develop the strategy that’s right for your business. 

Roadmap the Transition Process

Once you know what you’re aiming for, how you’re going to use technology to achieve your aims, and how you’re going to allocate responsibilities, make sure that you map out how you’re going to go about your digital transformation. Outline the steps you need to go through in a clear sequence, and mark out milestones and when you want to hit them. This will allow you to measure progress and adjust your strategy as you go.

How Knight Frank can Help Your Business Grow

Digital transformation can often bring changes to your business’s office space needs. A strong corporate real estate strategy is key to any business. And it’s important to avoid losing money and reduce inefficiency with inadequate and outdated office space. At Knight Frank, we are experts in identifying how best to use office space to meet your business needs. 

Here at Knight Frank, we have a deep knowledge of the office market, and we use it to find the best coworking space to perfectly fit your business’s needs. Don’t hesitate to get in touch now to speak to our team, let us know what you’re looking for and get started with some viewings.