The role of data in digital transformation

Introduction

The term ‘digital transformation’ can mean different things to different organisations. At the most basic level, oftentimes we might consider digital transformation to be a move of processes, operations, and applications from a traditionally offline environment to a digital one. 

Yet digital transformation can be anything from setting up a mobile app, site, or processes – to re-formatting and digitally enabling an entire enterprise. 

When we think about a digital transformation with data specifically, it’s digital enablement and enhancement across a business, delivering value through greater understanding, alignment and actioning of digital and offline data. 

For that reason, a digital data transformation is not limited to traditionally offline brands. In fact, as it works to bring fragmented data points and platforms together across an organisation’s wider ecosystem – on and offline – digital data transformation creates a clear overview of how to enhance, expand, and see the greater value – even for brands who are already online. 

Why consider the shift? 

Today, we live in a world where everyone, from brands to people, engages across increasingly fragmented channels and platforms. In-store, on mobile, social media – as marketers, we have ever-expanding options to connect with customers, and access to greater volumes of data than ever before. The goal for all brands is to understand how to align all that growing data in real-time, across all sources and platforms – to know how to use it to inform and transform. With the right planning, platform integration and data strategy, that’s exactly what a digital transformation with data delivers. 

From highlighting how and where to move to drive exceptional, relevant customer experiences, to knowing how to streamline internal operations, or adjust product – that data holds the key to growth. 

Defining digital transformation for your organisation 

A true digital transformation with data will work to implement and refine the right unified applications, data strategy, data management, process, and analytics to enable that accurate data insight – aligning and refining on and offline data to support intelligently informed decision-making across the business. 

Of course, as every organisation will have different goals, priorities, and ambitions, no two processes will be the same – each organisation will have different starting points and technologies in place for a digital transformation. 

The information below will outline key considerations, common objectives, benefits, and use cases for implementing a digital transformation with data across a business.  

Creating a coherent plan for digital transformation

What does a digital transformation strategy look like? What should it consider? 

Before planning what digital transformation looks like for your brand, it’s important to consider your goals and understand why a transformation strategy is the right approach. 

Because of this, there’s no point in developing a digital transformation plan that only considers transformation in segments. For example, a transformation that only introduces digital technology, without consideration of data strategy and data integrations (or vice versa) will not deliver results. 

Instead, a successful digital transformation strategy considers and combines multiple elements – such as a data strategy, and a tech enablement plan – all while accounting for overarching structural, business and marketing goals – such as improving customer experience. 

It may sound complex. But really, digital transformation is a process designed to combine, clarify, and integrate processes, data and technology into an informative, actionable layer across the business. 

What should you consider to drive effective digital transformation for your brand? Let’s break it down. 

First, consider: What are your organisation’s goals? 

What’s driving the need for digital transformation in your organisation? What do you want to achieve from it, and across which areas of the business? 

Because of its seemingly wide scope, digital transformation objectives may feel almost infinite! 

Some common use cases may be to:

Digital transformation can deliver change and impact for all organisations. From offline brands who are just starting their digital journey, through to brands who are already online but who want to learn more about their online, anonymous customers – and understand the potential to find customers more intelligently through data. 

Of course, your unique company priorities, goals and objectives will inform the components and process of digital transformation. But with the right support to deliver transformation into the business, the results will be clearer insights and intelligence across the organisation, highlighting exactly where and how to reduce cost, resource and waste from process – while enhancing marketing strategy, customer experience (and so sales, loyalty, brand advocacy and more). 

What does a typical digital transformation involve? 

With such a broad spectrum for definition, ‘digital transformation’ has become a term used almost to the point of meaninglessness – applied by brands and vendors alike to describe any change or improvement involving digital technology.  

Digital transformation should be considered as the planned evolution of data strategy and organisation. Essentially, a digital transformation is a review of how brands organise their structures and staff to take advantage of hyperfast, sophisticated technology that can do more, better. 

For this reason, a truly effective digital transformation involves more than the adoption of a new digital tool or two. It should be a fusion of sophisticated technology, that firstly; collects and orchestrates data, secondly; uses that data intelligently to inform the organisation who collects it, and thirdly; combines technology and data insight to deliver superior, data-driven customer brand experiences. 

Because of this, key areas to consider for true digital transformation include: 

• Data strategy
• Data management, data unification, and integration 
• Digital responsibility by design 
• MarTech enablement, integration, and optimisation 
• Customer experience 

Should you consider a digital transformation partnership? 

To achieve the best results and ROI from a digital transformation, a holistic and strategic approach, that accounts for each of the above elements is what will drive success. In fact, a fragmented ecosystem, that fails to consider these points together (or only considers these areas in segments, such as new tech implementation without an effective data strategy) tends to result in underwhelming or ineffective transformation for the business. 

For this reason, and because of the scale of digital transformation initiatives, many organisations consult with an expert data partner who can review, consult, optimise or implement the right elements of data-driven digital transformation at the right times. 

Considering the right goals for organisational data

Why digital transformation now? What objectives are driving transformation? 

What objectives are driving the demand for digital transformation with data today? 

If we consider the past 20-30 years, there has been an incredible amount of technological change that impacts our everyday lives. From the advent of the internet, mobile and more, transformative, evolving technology has not only changed our lives as customers – but it is driving change from brands. 

As a result, those who prioritise digital transformation are the ones who stand out; whether they’re an already-online business that needs a transformation initiative to engage markets they have not previously targeted – or a traditionally offline brand who recognises that a negative digital brand experience can be damaging for CX, loyalty, reputation, and more. 

At the most basic level, it’s this recognition of the need to change – a change in technologies, a change in business mindset and culture, that drives effective transformation. Understanding the opportunities that data insight can bring – to streamline, inform and integrate activity across all areas of the business – the drivers behind digital transformation are clear. 

What common challenges do organisations face that digital transformation solves? 

We know that the scope for digital transformation can be vast. However, common challenges that organisations may look to solve with digital transformation may be to:

How digital transformation is a solution to data fragmentation

The need to solve fragmentation and remove data is a key driver behind transformation initiatives. So how does digital transformation address that? 

How digital transformation solves fragmentation 

Facing fragmented customer engagement platforms and channels, and with fragmented marketing and data technology in place; it’s no surprise that data fragmentation present a substantial challenge. 

At its core, effective transformation is about data. Whether digital or not, the goal is to implement the right strategy, technology and infrastructure to get more from data, add value to it, and use it better.

Matching digital and offline data

So where does data sit within digital transformation? 

A key objective of digital transformation is to solve the challenge of fragmented data and tie it together online and offline. 

Put simply, data is the fuel that powers transformation. Well-managed customer data, that has been enriched and activated, is an asset that can drive change across an enterprise. Transforming how data is collected, orchestrated, activated and ultimately used for measurement, is another central objective of digital transformation. 

Forming a structured data strategy and assessing if any existing data strategies are still fit for purpose is key. Considerations to take into account are: 

•  What data do you have 
• What data are you collecting 
• How do you use that data
• What does the data tell you about your customers (and your customer experience!) 
• What data are you missing (based on what you don’t know because the data isn’t good enough) 
• And lastly, what data do you want, that you don’t already have

Once an organisation is able to answer this – or acknowledge that they are unable to address these points – they will be better prepared to start a digital transformation initiative. 

Getting online and offline right at the data layer is the best way to prevent digital transformation initiatives from stalling. Only once the data is unified, integrated, orchestrated and activated on and offline, can organisations unlock clear insight and maximise their transformation investment. 

Digital and offline attribution 

Attribution is of course a core element when considering on and offline. Frequently, you have offline attribution modelling and online in terms of digital channels. Here it’s important that attribution is enabled across the digital/online and the offline landscape. 

A digital transformation initiative should lead to or enable, better attribution modelling across both environments. 

How customer expectations are driving digital transformation

Customer experience or digital transformation? 

As people move into ever-digital spaces and adopt increasingly varied channels and technologies, they expect the brands they engage with to keep up! 

Brands who are active on the right channels, at the right times and who can recognise individual customer needs – then engage accordingly – will be those who win out, deliver the best customer experience and secure loyalty. 

Yet to achieve that seamless customer experience that meets customer expectations, organisations must first have the infrastructure in place to support it. 

This means that while improving customer experience is often high on the strategic agenda; digital transformation and technology evolution must be prioritised first. Without having the right unified data in place, or removing fragmentations from MarTech, it’s incredibly hard to deliver on customer expectations and create a seamless customer experience. 

Managing organisational expectations

Of course, it’s not only customers’ expectations of a brand that need to be considered. To be effective, a digital transformation must manage the expectations of the organisation itself. People and the organisation can be the biggest blockers to transformation success! 

Securing buy-in and accountability from the wider team is crucial, so to drive success long-term: 

• Align objectives within business segments to enable people to see the value. 
• Make the wider team responsible for aligned metrics. When everybody is reviewed using the same criteria you develop a culture of cooperation. 

Many organisations have short attention spans and will be looking for quick wins from a transformation initiative. However, as the wider-reaching benefits to customer experience may take time to deliver measurable impact, make sure everyone across the business understands the roadmap to transformation – from objectives to drivers, to goals and crucially, timescales. 

Different job roles may have different controls over how to enhance customer experience. Web teams and designers will have a different approach than the marketing team, or the operations team. But enabling that cooperation culture – as well as understanding which applications and data can help you to get there, is key. 

Getting transformation right requires the business to have the financial strength and executive sponsorship to keep investing through the timescale required for transformation to delivery. If the business is struggling financially, this will be one of the first strategies to be cut. 

Digital Transformation Use Cases in Action 

As we’ve outlined, there are substantial, organisation-wide benefits to implementing a digital transformation. 

But what use cases are pushing for change? 

Across industries and verticals, common drivers behind a digital transformation are to improve. 

• Data quality and completeness – to turn data into insights 
• Identity management and security by design – to put the customer at the core 
• Reach and segmentation – to reach the right audiences in the right places 
• Organisational process and tech – for faster, streamlined, more intelligent action 
• Personalisation – to deliver greater customer experience across the right touchpoints 

Digital transformation in retail 

So how can a digital transformation work in practice for a specific industry? Let’s see how digital transformation can impact retail. 

Retail is a particularly fast-changing industry. We’ve all heard about the ‘retail apocalypse’–  that digital is taking over, and brick and mortar stores are dead. But in reality, we know high street retail is not going away. Instead, the role of the store in the buyer journey is changing, evolving and increasingly fragmenting across channels and touchpoints. 

There are also multiple new technologies enabling innovation and change in retail. From VR to AR, forward-thinking retail brands are the ones who can stay ahead of the curve. 

As a result, many retail brands are aware of the importance of digital transformation, stating: 

“We’re traditionally offline, but know we need to transform online to access those audiences and deliver a better customer experience” 

Or, 

“We’re online, but know we need to improve and streamline our digital presence.” 

Of course, every transformation initiative is different. No two brands are the same. But, some common elements of a digital transformation for a retail organisation might include: 

• Omnichannel customer identity: Knowing who the customer is wherever and whenever they engage with your brand. 
• Omnichannel customer experience: Making it easier for the customer at every stage of the buyer journey including researching, shopping, buying, receiving, using and returning products. 
• Real-time personalisation: Making each interaction with the brand contextually relevant and personally meaningful. 
• Multitouch attribution: Identifying which engagement points, content, offers, and interactions are most impactful to the customer experience. 
• New customer acquisition: Effectively and efficiently acquiring profitable new customers who become loyal to the brand. 
• Existing customer loyalty and retention: Engaging with customers in ways that keep them coming back for repeat purchases, build loyalty, and generate increased margins. 

In line with the unique remit of each digital transformation initiative, KPIs and goals will also differ. Common goals and aspects are likely to generate more conversions, greater ROI, seamless CX, and a greater customer experience. 

While the scale of a digital transformation may seem overwhelming, it’s important to keep in mind that starting the process is the most important step. True transformation is a constant process of continuous improvement – with the right support, data insight and infrastructure in place, you’ll be able to keep pace and deliver! 

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