Digital Transformation Strategy: Key Steps to Future-Proof Your Organization

Ninety percent of all organizations are engaged in digital transformation.1 Business leaders see technology as a necessary driver for competition and growth.

What does digital transformation mean?

Digital transformation is intentional technology integration into all aspects of the organization. The result is a fundamental change that enhances how a corporation operates and performs, how employees function in their roles, and how customers interact with the corporation.

Digital transformation adds value throughout the enterprise.

Digitization is a proven method to substantially lower manual labor and boost productivity. For example, manual invoice processing can cost as much as $20 versus $3 for automated processing.2 Transferring digitized information to the cloud also eliminates the expense of physical data management and gives employees better access. Digitization also enables teams to focus on more strategic tasks than paperwork.

Eliminating paperwork is just one step toward modernizing your enterprise. Business process automation, which restructures complex procedures into digitized workflows, enhances analysis and reporting. Employees can access critical data, like pricing, product availability, logistics and financial documents, almost instantly. This facilitates more collaboration and better decision-making.

Artificial intelligence (AI), quantum computing, virtual and augmented reality, no code/low code platforms and other innovations further technology transformation. As capabilities and functions of these technologies evolve, corporations will be able to both streamline and scale operations to meet increasing business demands.

An effective digital transformation strategy aligns with overall corporate goals.

While corporate leaders are largely in favor of digital transformation, some lack clarity on how to generate a return on investment. The decision to digitally transform an organization is an expensive, possibly disruptive proposition that must be carefully weighed. A thorough, well-documented plan establishes a roadmap to guide implementation, while avoiding common pitfalls.

1. Clearly define project objectives.

   A digital transformation strategy should address "why,” “how,” and “at what cost (including risks)" your organization will deploy technology and processes to optimize overall business goals. Within the plan establish clear objectives, define the technologies and tools needed for desired outcomes, and specify measurements and milestones to assess whether the strategy will satisfy the organization’s operational, customer and financial needs. If not, be prepared to adjust your plan accordingly.

2. Build consensus among leadership and employees.

   When initiating a significant change, buy-in is critical. The C-suite can provide direction, leadership and set project budgets. Employees, however, may be hesitant about technology transformation and concerned about how it will affect their roles. A measure of fear is understandable when introducing change. Recruit and develop change agents who understand the objectives and can effectively communicate them throughout the organization, as well as answer questions that arise.

3. Choose complementary, scalable technology.

   With the vast array of hardware, software, platforms and devices, it’s possible to be overwhelmed with technology choices, as well as overspend on implementation. When selecting components, let your digital transformation strategy be the guide. Seek advice from technologists and partners on solutions that scale with your organization, as well as feedback from those who will regularly use and maintain the solutions.

4. Develop a comprehensive budget.

   The average cost of an enterprise-wide digital transformation is $27.5 million.3 However, the cost to your organization will depend on its size and the level of project complexity. Analyze legacy systems, data volume and other elements that will impact spending. You’ll also need to budget for training, implementation, monitoring and maintenance.

5. Establish a reasonable implementation schedule.

   Moving too quickly on a digital transformation can be costly. The risk is investing time and money into technologies and tools that don't meet the organization’s needs. Important steps can be overlooked as well. Set an implementation schedule that allows adequate time for training, testing and modifications.

6. Continuously reevaluate processes and technologies for improvement opportunities.

   Learning curves are inherent to technology integration. Test systems, standards and processes before and during implementation. Vigilantly monitor results and expect to make continuous adjustments to improve performance.

7. Communicate project details candidly and regularly.

   Articulate the rationale, scope, and timeline for change to all stakeholders. Begin communication early so stakeholders can prepare. Ensure the lines of communication remain open throughout the enterprise before, during and after implementation.

Global business leaders believe in the power of digital transformation.

Digital transformation’s quintessence is technology integration that increases efficiency, reduces and costs, and enhances profitability. Global business leaders who participated in a recent study on technology use (29% in the Americas) believe the investments are worthwhile.4

• 72% say decision-making improvements led to greater business value.
• 87% attribute increased profits to multiple types of technology enhancements, including automation, AI, data and analytics.
• 59% increased profits at least 11%.

Over a two-year observation period, the percentage of research participants who reported increases in profitability grew 25% year-over-year.5

Who are some of the corporations reaping the rewards of digital transformation investments?

• Software running AI and internet of things sensors transmit preventative maintenance alerts for Caterpillar’s construction equipment. These notifications recommend when parts need to be replaced and an ideal time for repairs, as well as assisting in automating difficult tasks.6


• U.S. power producer Vistra built a multilayered neural network model to improve overall efficiency and reliability, as well as reduce emissions. After analyzing two years of data, the company’s “AI-powered engine” generates recommendations to improve the plant’s heat-rate efficiency every 30 minutes.7


• The Mayo Clinic uses AI and machine learning to help doctors diagnose illnesses, as well as for scheduling. The hospital also provides telehealth services and remote consultations via the cloud.8

Technological advancements spur virtually limitless use cases, as well as exponential opportunities for growth across multiple industries and sectors.

Contact us today to start your journey toward a more agile future.

The level of commitment, investment and work required for technology transformation is extensive, but the value is clear. Improved operational efficiency, faster time to market, and the ability to meet customer expectations give corporations a competitive advantage and greater revenue potential.

Synovus can assist your organization in developing a solid digital transformation strategy. For more information, contact a Synovus Commercial Banker or stop by one of our local branches for more details.