{"id":80624,"date":"2019-11-05T08:00:36","date_gmt":"2019-11-05T16:00:36","guid":{"rendered":"https:\/\/oroinc.com\/b2b-ecommerce\/?p=80624"},"modified":"2021-12-03T04:42:05","modified_gmt":"2021-12-03T12:42:05","slug":"successful-digital-business-transformation-part-1-selling-the-idea","status":"publish","type":"post","link":"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/successful-digital-business-transformation-part-1-selling-the-idea\/","title":{"rendered":"How to Succeed in Digital Transformation [Part 1]: Selling the Idea | OroCommerce"},"content":{"rendered":"

Everyone\u2019s talking about the digitalization of business and has been for years now. So why hasn\u2019t every business undergone a complete digital transformation by now? In this four part series, we\u2019ll look at why companies resist digitizing and how to sell the digital transformation idea; how to build a strategy for the digitalization of business; if and when you should enlist consultant(s) to help along the way; and finally what to expect at the end of the journey and how to determine if you have been successful. Strap in tight. There is going to be a load of information coming at you quickly, you might want to bookmark this article and refer back to it as you follow the series and think about your own digital business transformation.<\/span><\/p>\n

Why Digital Business Transformation is Lagging<\/b><\/h2>\n

Digital transformation isn\u2019t easy. 70% of large-scale attempts at the digitalization of business fail<\/span> according to McKinsey & Company research<\/span><\/a>.\u00a0<\/span><\/p>\n

Even in large companies with access to great resources the process takes time, but it does pay off in terms of an increase in stock prices and revenue.<\/span><\/p>\n

\"Digital<\/span><\/p>\n

[Source]<\/a><\/p>\n

Technology giant Microsoft took 5 years for their own transformation but reaped a stock increase of 258%.\u00a0 Best Buy escaped nearly certain death with its digital transformation. It took 7 years, a new CEO, a move from printed, mailed marketing to almost exclusively digital marketing, and a new service-driven perspective but Best Buy is now stronger than ever after its transformation.<\/span><\/p>\n

So, what\u2019s holding your company back? In B2B, there\u2019s still an incredible amount of old-school thinking. Top management either doesn\u2019t understand how the digitalization of business will give them data to make truly informed business decisions, thinks digitalization just means a shiny new website, or sees technology as a costly unknown that is to be feared.<\/span><\/p>\n

Or, it might be that the day-to-day challenges of remaining competitive are so all consuming that there\u2019s no big picture thinking. As the old saying goes \u201cwhen you\u2019re up to your backside in alligators, it\u2019s hard to remember that your goal is to drain the swamp\u201d. Slumping sales, overstock or lack of inventory, and marketing that isn\u2019t yielding the desired results are the snapping alligators that management may deal with daily. Fighting those snapping alligators keeps management from seeing that a digital business transformation is the swamp-draining solution to their problem. So, where do you even start? You need allies.<\/span><\/p>\n

Find Fellow Digital Transformation Advocates<\/b><\/h2>\n

Cultivate digital allies throughout your company. These allies will form your initial core team of digitalization advocates. Don\u2019t necessarily think narrowly in terms of organizational hierarchy but more broadly in terms of functionality. How would digitalization help the purchasing function? Find an ally there. When Home Depot underwent the digitalization of their business, they uncovered customer data that helped them keep the right items and quantity in stock without losing money on excess inventory and<\/span> reduced out of stocks by 24%<\/span><\/a>. So, when looking for allies, don\u2019t overlook those in charge of your supply chain. Marketing and sales are the two obvious places to find digital allies. How would digitalization of business transform their functions for the good of the company?<\/span><\/p>\n

Digital advocates should be part of a team that:<\/span><\/p>\n