80 percent of customer service organizations will have abandoned native mobile apps in favor of messaging for a better customer experience by 2025. Adapting based on changing customer needs was already built into their culture because forward-thinking leaders armed their companies with technologies to be agile and embrace transformation. Early transformers, now household names like Amazon, change toward things customers want and away from products or services it turns out customers don't need. Digital transformation refers to the incorporation of digital technology across all areas of a business, changing how the business operates. Not so many years ago, Hartwell explained, customer experience used to be large call centers in a central location or two. They view technology as a tool helping them meet business goals instead of a system driving how they run their business. But it can also complicate matters when not integrated with existing systems. For example, if you’re bringing AI to your customer service department and agents are worried about losing their job, managers need to communicate that jobs aren’t at risk. The cultural component of the digital transformation requires buy-in from the people on the ground, doing the daily work involved in completing the digital transformation and then engaging with the technology. “Customers need the ability to reach out on the most convenient channel and get a fast answer, interactively.”. “Businesses need tools to pull a dispersed workforce together, so the fact they’re dispersed is invisible to customers.”, High performing CX teams didn’t all of a sudden decide quality systems and tools were necessary because of COVID-19. Some transformations have been ongoing for decades, while others are still in nascent stages. However, broadly speaking, it describes the integration of digital technology into each area of the business. Read on to learn what digital transformation is—and more importantly, how to keep your customer at the center of it. Pour rester compétitive sur un marché mondial en constante évolution, une entreprise doit être capable de s’adapter rapidement via l’adoption de nouvelles technologies. If customers have to be transferred between departments or repeat themselves because channels and context aren't connected on the back-end, it’s a frustrating process for both customers and agents. "Nishanth Babu, VP of Product Growth and Monetization, Zendesk. It’s the process of fundamentally changing something using digital tools and describes adopting technology and—potentially—cultural changes to improve or replace whatever existed before. What is digital transformation? Every department has to keep the customer in the orbit of their processes. From a marketing perspective, AI can seep through massive amounts of customer data so marketers can provide customers with better-personalized experiences. Some smarter, nimbler competitor is just about to overtake you with a more innovative approach, or better use of data or clever use of technology and take your market. Digital transformation refers to the process and strategy of using digital technology to drastically change how businesses operate and serve customers. "If you want to drive big, impactful outcomes, you need to look at data from a 360 view. It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. All of these ways would help to increase the value of the brand’s processes through digital technology. Take chatbots. That’s why the first step of the people-side of transformation is to discover what’s changing, why you’re changing, when it’s taking place, and who it impacts. But if you keep your focus on your customer as you reimagine how people work, processes that support them, and technologies they use, generating breakthrough value becomes easier. “Digital transformation is the use of new age technologies over traditional business processes to build a scalable process of innovation, optimization and growth.” This requires a company to shift from age-old management practices and activities towards more dynamic setups. Understanding what this process entails and how businesses can experience it can help brand leaders keep their organizations abreast of these latest changes and ensure that they remain at the forefront of their industries. These types of transformations often work hand-in-hand with the strategic parts of the business, using their eye for innovation and forward-thinking to look at the business potential beyond the established means within the industry. But processes that foster better-personalized experiences aren’t built overnight. NASA.gov brings you the latest images, videos and news from America's space agency. When they don’t, the technology sticks out like a sore thumb. Flexible systems enable employees to work anywhere without the business having to build and maintain its own data center. “Businesses need to be in a position where they aren’t building a system, but an ecosystem of systems plugged together like so many Lego bricks,” said Hartwell. Customer feedback can be indirect—like purchasing behavior or how customers use your product or service and direct—like pain points customers share with agents or via NPS surveys. Mobile apps play a critical role in projects for digital transformation that businesses implement in nearly every sector. It can be a challenge for many organizations to make this transformation, as they have to educate their employees and help everyone see the potential for this technology to build the business and better engage the world around them. “It’s literally pop out the Lego brick and pop in a new Lego brick,” said Hartwell. “Personalization is the ideal state, but it’s not the starting position for most businesses. Businesses might find that they must sometimes step away from their old processes that they knew worked well, in favor of experimenting with innovative solutions that have not had the same extensive testing. Fundamental change has to be made, and foundations built,” explained Babu. In a digital-first world, contact centers need to move faster than ever. Businesses need to make technology invisible to customers on the front-end and ensure teams using that technology on the back-end don’t have to overthink it either. Learn how to implement web self service to significantly improve your customer experience and satisfaction. Examples of digital transformation IT modernization, like cloud computing Take Vimeo. This means a business’s tools need to carry it in that direction. Les autres prennent l… “A lot is going on in customers’ personal lives and the world,” said Babu. Here are some key steps for bringing your people along with transformation. “Businesses need to be clear on who buys their products and what their customers need,” said Nishanth Babu, VP of Product Growth and Monetization, Zendesk. “Most people think of agility as being quick to do something, which is true, but agility also means being quick to react to get incremental value.”Bruce Hartwell, VP, Customer Experience Systems, Zendesk. Digital transformation is what's happening to organizations as they adopt new and innovative ways to do business based on technological advances. But the environment of constant change driven by COVID-19 made business transformation more relevant than ever, shrinking the transformation timeline from years to weeks, according to Gartner. “But if not done right, it's a nominal investment that can cause pain all your marketing and sales dollars aren’t going to get back.”. Those who the transformation will impact are stakeholders, according to Dana Otto, Senior Manager, Change Management, Zendesk. It can also mean incorporating automation into internal processes. AI and machine learning enable businesses to scale with less, understand big data, and build better customer experiences—but only when they use it to augment their people. Digital Transformation Day goes digital and returns in 2020 for its 4 th and largest edition. Get the latest updates on NASA missions, watch NASA TV live, and learn about our quest to reveal the unknown and benefit all humankind. “No one is amazed when you walk into a room and turn on a light switch anymore. Digital solutions may enable – in addition to efficiency via automation – new types of innovation and creativity, rather than simply enhancing and supporting traditional methods. 76 percent of customers expect personalization. An excellent real-life example would be Netflix, which transitioned its movie-watching services away from mail-in DVDs to a streaming service that has had reverberations felt by all the major movie and television producers. Every transformation program is unique and will focus on different aims, including everything from improving business performance to overhauling the customer experience. Discover our roadmap for education professional. “Now, customer experience encompasses dispersed knowledge workers, especially in our highly remote world,” said Hartwell. reserved. Don’t look at AI as a means to reduce headcount. In the wake of the pandemic, people have begun to realize the far-reaching power of education-driven technology. In other words, having an agile mindset helps drive quick wins and incremental value supporting the more extensive transformation goal. “If you’re an early-stage startup, you can get it right from the beginning. Digital Transformation Defined. Digital transformation is a neat term at explaining a doctrine of modernising older IT infrastructure but it goes well beyond simply adopting technology; it is a shift in corporate culture as well. Understanding this process, as well as the impact it has on companies, can help people see how this will impact their own institutions and adapt accordingly. Yet a common mistake organizations make when undergoing business transformation is failing to communicate why they’re changing, according to Otto. It helps to make measuring success a constant in your transformation strategy, not the final step. Organizations that master customer-focused change prioritize the quality of their customer experience tech stack, meaning it’s an enterprise-wide investment decision, according to Zendesk and ESG’s research. Companies should look for systems supporting: Teams need always-on, highly interactive tools to engage with colleagues and customers digitally as if they were sitting next to each other. “The age-old idea of building a large, expensive, complex system doesn’t work in this pivot-quickly world,” said Hartwell. “Digital transformation and customer experience are part and parcel,” said Bruce Hartwell, VP, Customer Experience Systems, Zendesk. A successful transformation roadmap ensures people are aware of what’s changing and prepared to make that change, explained Otto. What is Digital Transformation? Digital Transformation (DT or DX ) is the adoption of digital technology to transform services or businesses, through replacing non-digital or manual processes with digital processes or replacing older digital technology with newer digital technology. That's why messaging has the highest customer satisfaction score of any channel, with a CSAT of 98 percent, according to our State of Messaging Report. When businesses thought of digital transformation previously, systems that cost millions of dollars and take years to implement typically came to mind. Businesses and schools find that they often embrace digital transformation from different perspectives. For businesses, this adoption is often a matter of survival. ), Digital transformation and customer experience, 5 types of web self service (and how to set them up), Delivering personalized customer experiences with Zendesk and Amazon Connect, How companies thrive after switching from Salesforce to Zendesk, Building stronger customer relationships with messaging, Implementing digital tools like artificial intelligence (AI) to free employees to focus on tasks requiring creativity, problem-solving, and more human skills, Using design thinking to discover and resolve pain points in the customer journey, Revamping processes to adapt to customers’ needs, Evaluate how people feel about the transformation, Build a transformation roadmap around awareness and preparedness, Invest in tools for a distributed workforce. Please reload the page and try again, or you can email us directly at support@zendesk.com. The real, evergreen driver for customer experience transformation, according to Hartwell, is businesses cannot exist unless they have the presence and ability to engage with customers quickly, easily, transparently, and personally. A business process might coordinate sophisticated behavior of people, systems, and information behind the scenes, but your customers don’t have to know that. That’s a gradual journey.”. As technology evolves, so should your business. It is only by adopting these best practices and fully integrating the employees into the mindset of digital innovation that brands can remain at the forefront of their industries and continue to serve customers with the care that they have come to expect. “Your business needs change. Know how to benchmark your digital transformation initiative against your peers. In other words, businesses that master transformation create an environment that allows them to be nimble. The modern digital transformation has changed how businesses and organizations across sectors engage with their customers. Thus, digital transformation usually involves a change in a company’s culture and hierarchy. Digital transformation is the process of using digital technologies to create new business processes, culture and customer experiences. What are the 4 main types of digital transformation? Digital transformation is the cultural, organizational and operational change of an organization, industry or ecosystem through a smart integration of digital technologies, processes and competencies across all levels and functions in a staged and strategic way (also see digital transformation strategy). Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. As we head into this second wave of digital transformation, rest assured that making digital investments is no longer a consideration but a necessity. Digital transformation isn’t a product or solution to be purchased, but it … Sorry something went wrong, try again later? But innovative organizations are proving generating transformation value shouldn’t have to take years, or even months. But high performing customer experience teams didn’t all of a sudden decide quality systems and tools were necessary because of COVID-19, according to research by Zendesk and ESG. It looks at how your people respond to the available technology and put it to use in their own work. The business process part of the transformation refers to how your company functions internally. A business should ask itself: ‘are we making things as simple as possible for customers?’”Nishanth Babu, VP of Product Growth and Monetization, Zendesk. This includes tools that enable teams to collaborate and interact with customers in real-time, such as through lag-free video conferencing, and asynchronously, such as through messaging channels. Otto uses surveys and interviews to continuously measure awareness (how aware people are of what’s changing and why) and preparedness (how equipped people are to make the change) to ensure both aspects improve over time. (You can unsubscribe at any time. Here are strategies for getting the technology piece of the digital transformation puzzle right. “Data is more impactful when a business looks at the entire customer journey, focuses on the big picture, the story data is telling, and how it affects the overall business,” said Babu. As the digital world requires educators to find new ways to incorporate and integrate technology into the teaching practices, the schools that manage this the best will naturally rise above the others. Why digital transformation is so important, More tips for preparing employees for digital transformation, Please also send me occasional emails about Zendesk products and services. When you put your car in reverse, you don’t think about all the components making that happen; you just expect it to happen. Digital transformation is a universal phenomenon where businesses use digital technologies to change, improve, enhance, and replace existing business processes. Consider how Amazon, the online retailer, managed to launch Amazon Web Services, which now functions as one of the largest cloud computing and infrastructure services. At an MIT Sloan CIO Symposium panel earlier this year, Rodney Zemmel, global leader, McKinsey Digital of McKinsey & Company, identified December, 2019 as a time of “peak cynicism about digitization.” But then he went on to say, in 2020, “COVID accelerated the migration to digital.” Sign up for our newsletter and read at your own pace. A comprehensive plan incorporates both parts. “The old concept of building an expensive corporate location isn’t going to be mainstream,” Hartwell said. Explore this eBook to learn how companies of all types, large and small, have flourished after making the switch from Salesforce to Zendesk. The best digital tools just work—customers (and employees) don’t have to think about them. But when leaders share information before they’re confident, they can instill doubt in employees. These traits within the organization will help the brand create positive customer experiences, as the company will be able to adapt their practices and incorporate technology to deliver a personalized experience the customer wants. By centralizing key information, staff has quick access to any information they need from anywhere in the world. The importance of digital transformation isn’t under question. “People should always know what the why is, whether it’s connected to an OKR or company goal,” said Otto. As technology has become an increasingly important part of everyday life, we have begun to witness digital transformations across a variety of industries. How technology is improving COVID-affected customer experience, Digital transformation challenges in education institutions. Digital transformation definition Digital transformation (DX) is an ongoing journey of using digital technology and digital strategy to fundamentally change an organization’s customer experience, business and operating processes, or culture. Technology can make things effortless. This fundamentally changes how you operate and provide value to your customers. Make value a focus throughout the digital transformation journey and beyond it to sustain and grow the value of the transformation. Before plunging head-first into this article, it is important to first clear the air about what digital transformation actually is, or rather what is meant by this term. Digitization refers to more modest initiatives, according to Gartner, such as putting services online or plugging a new technology into a legacy business model. Many of these opportunities come from emerging technology such as artificial intelligence and machine learning. To unlock impactful change, customer-centric organizations take an integrated approach, linking customers’ needs to transformation. When rethinking business and operating processes, here are tactics to keep your focus on the bigger picture: how to deliver breakthrough value to your customer. According to Deloitte, “digital transformation is all about becoming a digital enterprise—an organization that uses technology to continuously evolve all aspects of its business models (what it offers, how it interacts with customers and how it operates).”. IDC estime que les dépenses mondiales dans les technologies et services qui favorisent la transformation digitale atteindront près de 2 000 milliards de dollars en 20221. In fact, Gartner predicts that 80 percent of customer service organizations will have abandoned native mobile apps in favor of messaging for a better customer experience by 2025. “The good old days of submitting a ticket via email and waiting for an answer are long gone,” said Hartwell. It built a process for product teams to use customer support analytics to ensure product changes are contextual and relevant to those they impact. A digital transformation initiative involves change at the organizational level—change that generates breakthrough value. By Hannah Wren, Content Marketing Associate, Published December 1, 2020 It’s essential to open a feedback loop and talk to stakeholders directly. Become an EHL Insights contributor, EHL GroupRoute de Cojonnex 18 1000 Lausanne 25 Switzerland. Cloud-based software operates and stores data on remote servers, giving companies flexibility in how—and where—they use the service. But if you want to get to the root cause of an issue and drive big, impactful outcomes, you need to take a step back and not look at data in isolation, but from a 360 view,” said Babu. In fact, research revealed organizations best prepared to transform for COVID-19 had processes in place that enabled them to act on customer feedback and use it to adapt to customer needs quickly. Digital transformation involves using digital technologies to remake a process to become more efficient or effective. The virtual world is similar, according to Hartwell. Customer-focused organizations don’t transform to add technology for its own sake. Customer-focused transformation starts with your people—the employee experience and the customer experience are intimately linked. The phrase … Thus, the shift to remote work resulting from COVID-19 is a driver in the direction business was already headed. Digital transformation is generally viewed as an aggregation of modern tools and processes leveraged to solve business problems and satisfy customers. Digital transformation is important because it enables an organization to grow in new and innovative ways, react to changing market conditions, and handle future disruptions. Last updated December 11, 2020. All of these ways would help to increase the value of the brand’s processes through digital technology. Over 60 percent of businesses have already implemented AI for a reason. Personalization is key to a winning customer experience—76 percent of customers expect personalization, including interactions over their preferred channels, engagement tailored to account type or status, or recommendations based on purchase or search history, according to our 2020 Trends Report. It’s used to improve processes and productivity, deliver better customer and employee experiences, manage business risk, and control costs. In some circles, "digital transformation" as a term was starting to wear out its welcome in 2019. Digital transformation is a challenging yet necessary journey. And if one solution doesn’t work out, businesses want to have the flexibility to replace it without rebuilding the whole environment. Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. In the wake of the pandemic, this has only been magnified further, as the ability of an organization to adapt to disruption in supply chains, changes in customer expectations, and adjust to time-to-market stress, became a critical component of thriving as an organization. “I can spend less money, leverage value right away, and then invest in my infrastructure incrementally to continually drive that value.”, "The age-old idea of building a large, expensive, complex system doesn’t work in this pivot-quickly world. Digital transformation refers to the adoption of digital technology in order to transform a business, its practices, its workplace, and its strategy. Companies often undergo digital transformation to help them do more with data—building processes that enable them to translate analytics into outcomes. “A business should ask itself: ‘are we making things as simple as possible for customers?’”, “A lot is going on in customers’ personal lives and the world. “CX technology is a nominal investment that gets you a huge amount of payback if done right,” said Hartwell. Awareness focuses on communications, and preparedness on training enablement. “If you can make people feel like their voices are heard by addressing their concerns, it helps them move along with transformation.”Dana Otto, Senior Manager, Change Management, Zendesk. “Any data tells you something. Think about customer service software. A customer-orientated mindset is what takes an organization from a digital transformer to a digital leader. Businesses should think of their tech stack as an ecosystem of tools or an architecture of systems that fit together, according to Hartwell. But if you’re changing a product or business model that’s been around, it’s more of a change to the culture. People who champion the transformation or approve it can be stakeholders, too. Digital transformation … "Bruce Hartwell, VP, Customer Experience Systems, Zendesk. This reimagining of business in the digital age is digital transformation. The term is widely used in public-sector organizations to refer to modest initiatives such as putting services online or legacy modernization. When it comes to digital transformation, companies often throw around buzzwords like “personalization” and “customization.”. Plenty of companies today boast about undergoing digital transformation, but what they usually mean is digitization. That’s why resilient businesses invest in best-of-breed tools. Within a company itself, it requires a cultural shift in how processes are completed. Succeeding in building a technologically-focused organization, however, will empower the company to continue to grow. The future of work will be a hybrid of in-person and remote environments, according to Hartwell, with the latter the predominant model. What does this mean for an educational institution? But now, businesses have tools, like CRM software, to build processes that connect data dots across support, marketing, product, sales—the entire customer journey. Digital transformation is a term most often associated in the business world where companies are striving to keep up with changing business environments brought about by customer demand and technology. Digital transformation in this area looks at ways to help the organization improve its functions. In the past, legacy systems and processes left data in silos, making it hard to see the full story and leading to disjointed, inconsistent customer experiences. “In the future, each of these solutions will be SaaS and cloud-based, specialize in a particular area that it does very well, and all talk to each other.”, “Businesses need to be in a position where they aren’t building a system, but an ecosystem of systems plugged together like so many Lego bricks.”Bruce Hartwell, VP, Customer Experience Systems, Zendesk. If you invest heavily in a single tool or platform and your business goes in a different direction, it's costly to tear that out and start over again,” said Hartwell. Domain transformation refers to the growing capacity of brands undergoing a transformation to think about markets and potential beyond their traditional boundaries. Stakeholders often include employees, their managers, training teams, HR business partners, or vendors. It simply encompasses the penetration of digital technology into all spheres of life; education, healthcare, but most importantly, businesses. But data has to be contextual to be customer-centric. In the customer service world, support teams can pass repetitive customer requests to a chatbot so they can focus on more engaging tasks that require the human touch. It results in core changes to how a business operates and delivers its products or services to customers by taking advantage of the technological advancements. Engaging with customers via emerging technologies like social media is one way to provide the low-effort experiences customers expect. Digital transformation, the buzz phrase of the moment, is a term I've heard and used a lot myself in the past couple of years, but I'm still not sure it's clearly understood. What is Digital Transformation? 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