Strategy; Leadership; Talent; Monitoring; Data Platform
A 2021 study done by the Boston Consulting Group on digital transformation showed that only 35% of 850 companies evaluated achieved their digital transformation objectives. This is a slight increase from 30% in 2020. Banks and credit unions specifically are further behind on their own transformation even with the push shift to digital spurned by COVID. Companies that succeeded in executing their digital transformation objectives had an increase of 21% EBIT within the scope of the transformation compared with only a 10% increase on average for those companies that did not.
These results show that success towards the digital transformation is not only beneficial for those companies but also a necessity to compete in today's world.
The five factors of a successful digital transformation are:
- An integrated strategy with clear transformation goals
- Leadership commitment from CEO through Middle Management
- Deploying high-caliber talent
- Effective monitoring of process towards defined outcomes
- Business-Led modular technology and data platforms
Let's take a look at each factor in more detail.
An integrated strategy with clear transformation goals
A successful digital transformation requires a well-thought-out and integrated strategy. The strategy should include a clear vision, backed by strategic imperatives and quantified business outcomes. The goal of the digital transformation should be linked to the overall business strategy and sustainable competitive advantage.
Leadership commitment from CEO through Middle Management
The success of a digital transformation depends on leadership commitment from the CEO down to middle management. This commitment needs to be demonstrated through clear communication and engagement from the top, as well as assigning key decision rights and responsibilities down through the organization.
Deploying High-Caliber Talent
In order to achieve success with a digital transformation, it is essential to have the right talent in place. This means having the necessary skill sets or digital superstars within your organization, as well as the ability to attract and retain top talent. This is a tremendous challenge as more and more employees look for opportunities outside of their own organization.
Effective Monitoring of Process towards Defined Outcomes
To ensure that the digital transformation is on track, it is important to have effective monitoring in place. This includes setting up clear metrics and KPIs, as well as using a variety of tools such as process mining and data analytics. Having one source of truth in understanding used to be a luxury but is a necessity in moving your financial institution forward.
Business-Led Modular Technology and Data Platforms
Technology and data are the foundations of a digital transformation, but it is important to not go overboard with technology or make decisions based on technical complexity alone. It is better to plan for the long term by using modular platforms that can grow as your business grows and adapt along with your financial institution.
The success of a digital transformation is not defined by how complex or advanced it is but rather by whether it brings value to the organization and drives growth.
The Strum Platform was designed to help turbo-charge digital transformation for driving overall growth without a large lift internally. To learn more please visit our website and schedule a demo.
The most important step in your digital transformation is just starting. If you are feeling lost in all of your data Strum Platform is here to help. With our powerful visualization and AI, you can unlock the full potential of your data. Gain a deeper understanding of your customer and their behavior, and use that knowledge to drive better marketing results.
We know that data can be complex and overwhelming. But with Strum Platform it doesn’t have to be. Our easy-to-use platform makes it simple for you to get the insights you need, when you need them. So you can focus on what’s important - driving growth for your financial institution.