Digital transformation within TMT businesses does not have to be complicated. The imperative is to ensure that the customer lies at the heart of your approach.
Digital transformation will only succeed for technology, media and telecoms (TMT) businesses if they have a thorough understanding of their customers and their ever-changing needs. Enterprises must keep things simple, view technology as an enabler and drive the right insights from data in order to succeed.
Creating robust digital business models is a priority. Enterprises need a clear understanding of the different technologies available, and how they can work together to create real value for customers.
Obsess about your customers
Starting with your customers, instead of leading with technology, is critical. Research reveals that 61% of TMT companies regard improving customer experience as a top strategic priority. However, 65% blame legacy IT platforms for being unable to give customers what they want.
Leaping to technology solutions without having the customer at the forefront of your thinking could undermine your digital transformation.
About four out of 10 consumers do not think their personal data can ever be safe. Reacting to this smartly means providing reassurance about data handling, the kind of support that a technology fix alone will not provide.
The emphasis tends to be too much on implementing the latest shiny piece of tech,” says EY Lead Global Telecoms Analyst, Adrian Baschnonga.
The mindset of many businesses needs to change because everything has to be focused on the customer journey. Technology is an enabler, not an end in itself.
Keep it simple and focus on outcomes
“Digital transformation should have clear outcomes for customers, and simplification of products and processes should be the key driver, says Praveen Shankar, UKI Technology, Media and Entertainment and Telecoms Sector Leader at EY.
Just adding new capabilities to an already complex world of processes, systems and platforms actually works against the new levels of agility organisations are hoping to achieve.
Crucially, this drive for simplicity mirrors customers’ needs themselves. For example, according to EY, 24% of consumers find it difficult to track their favourite content across different services, platforms and apps.
An integrated view of technology is paramount. Shankar adds: “There is a lot of hype around disruptive technologies but you need to know how to apply them to your business effectively. This means harnessing them together correctly.”
Take a holistic view of people and processes
While intelligent automation can act as a game-changer, an engaged workforce is critical to its successful implementation. Transformation roadmaps require consistent articulation across the organisation, and a culture of collaboration should be front and centre of the enterprise approach.
“The most successful companies will accelerate their reskilling initiatives to bridge the gap, shortening their workforce’s time to mastery” adds Shankar.
Measure your value creation initiatives
When technology is viewed as an enabler it becomes easier to set relevant KPIs.
Enterprises should consider the return on investment that digital technology brings, by focusing on metrics like Net Promoter Score, cost-to-serve and employee experience. This includes placing a real value on the huge amount of actionable data that is generated by technology and boosts brand awareness, customer acquisition and retention, and ultimately sales.
Sharing these customer insights across business functions ensures that the benefits of digital transformation are felt right across the organisation.
Outcome-led, continuous improvement is the goal
Many enterprises tend to regard digital transformation as a one-off process to complete. In fact, the needs and wants of the business and its customers are constantly changing so a TMT’s technological requirements must continue to evolve too. Consequently, agile thinking is a necessary complement to effective transformation.
Various external factors, from disruptive competition to changing compliance demands, may force enterprises to change course or adapt existing digital programmes. As a result, agile thinking is a necessary complement to effective transformation.