Hallmarks of a Successful Digital Company

By Paul Myott, vice president of organizational effectiveness & internal communication

Managing Digital Transformation and the Leadership Required to Get There

What Is Digital Transformation?

The term “digital transformation” gets thrown around just about everywhere. It seems like an elixir that heals all operational bottlenecks. What exactly is digital transformation, though? How does it reshape the way businesses tackle their workflow challenges? And what roles do leadership and culture play?

According to The Enterprisers Project, digital transformation is the purposeful act of integrating technology into some or all business areas, remaking how that organization operates. The Oxford Languages Dictionary defines transformation as a thorough or dramatic change in form or appearance. It is easy to focus on the “digital” in these transformations because technology is the leading catalyst in these change events. Fully achieving digital transformation, however, requires not just a technological change but a leadership and cultural change where internal teams are empowered to challenge the status quo, experiment, and adapt to new ways of working.

The Benefits of Digital Transformation

The reasons for taking on digital transformation are many. Adopting technology for technology’s sake on a large scale rarely delivers the expected ROI and chasing “first adopter” status can be like catching a falling knife. There are several good reasons why enterprises digitally transform their business workflows. Here are a few that Forbes thinks should be considered:

• Keep Pace with Customer Expectations—Seamless customer interactions through their choice of web, mobile, call centers, and email are table stakes now. Integrating channels helps keep current customers and find new ones.
• Improve Efficiency—Automation of key business processes can reduce manual cycles and input errors and improve productivity by enabling employees to access data and collaborate efficiently in real-time from anywhere.
• Gain Competitive Advantages—Lower barriers to entry for artificial intelligence, big data, and the Internet of Things can make customer behavior insights, streamlined operations, and improved decision-making competitive differentiators.
• Reduce Costs—Automating manual tasks and workflows can improve productivity and reduce sales-to-revenue cycles. Adopting cloud technologies can also save on hardware.
• Enhance Security—Ever-evolving cyber security products like multifactor authentication, encryption, and network segmentation protect data from cyberattacks, and data breaches.
• Increase Agility—Widescale digitization enables quicker business cycles increasing the ability to adapt and pivot to evolving market conditions and customer needs. Businesses slow to adapt will require exponentially more effort to gain market share over first adopters.

To achieve these benefits and set a company apart as a high-performing digital business, leaders must become “bridge builders.” They must build the connections between business strategy, people and culture, and technology. Adapting the organization’s leadership style and mindset is half the battle. To apply an old adage to this scenario, “as leadership goes, so goes the people.”

The Key Hallmarks of Digital Transformation

Digital transformation is a marathon, not a sprint. Once the starting gun is fired, there must be a sound business strategy and a committed leadership team behind the program. From there, several factors come into play depending on the size and scope. Dreamix points out that 20 companies that achieved successful digital transformation in 2024 had several hallmarks in common. Here are some of the key attributes to strive for:

• Leadership Inspiration—Leaders must inspire their teams to embrace the change and give the new way of working a chance. As users encounter bumps in the road, it’s paramount to keep pushing for adoption.
• Technology-Driven—Successful digital transformations leverage advanced technologies—such as cloud computing, AI, and automation. This allows them to achieve agility, scalability, and speed in adapting to market demands.
• Data-Driven Decision-Making—Used correctly, data serves as a foundation for decision-making processes. Effective companies use analytics to guide strategy, improve customer experience, and enhance operational efficiency.
• Customer-Centric—Leaders in digital transformation keep customers at the center of their business model and decision-making. They use insights from data and feedback to continuously innovate and improve user experiences.
• Innovation Culture—By deploying digital processes, leadership teams can foster continuous learning and an innovation-friendly culture. They provide the tools that give people the agility to collaborate and create easily.
• Robust Security and Compliance—A strong security posture and adherence to regulatory standards in protecting sensitive data ensures business continuity. They also enhance your brand reputation as a company that cares about its customers and employees.
• Flexible IT Infrastructure—A reliable and scalable IT infrastructure (including cloud and hybrid environments, colocation partners, and on-prem data centers) enables a company to meet customer demands and innovate effectively.

As you strive to achieve digital transformation, it is critical for leadership to assemble teams with diverse viewpoints and expertise. Diversity of thought and experience sparks innovation and creates an environment where employees feel valued. Transformational leadership can shift the culture from top-down decision-making toward an environment of continuous improvement, empowerment, and inclusive thinking. These are the essential elements needed for sustained growth and resilience.

Assess Your Organization Today

Digital innovation challenges traditional practices and requires companies to respond swiftly and adapt quickly to shifting consumer demands and technological developments. Today’s business environment makes digital capabilities the difference between thriving and surviving.

Successful digital companies don’t just utilize digital tools; they embrace a holistic digital culture in all areas of operations. These organizations take advantage of data-driven insights, encourage innovation, and foster agile teams capable of adapting quickly to ever-evolving customer requirements.

DataBank encourages you to assess your organization’s digital strategies against the hallmarks. If you would like to talk with one of our IT infrastructure experts to learn more about how we can strengthen your digital transformation approach, contact DataBank today.