10 success factors for a successful digital transformation

More and more companies are choosing to modernize their legacy applications through digital transformation. But how can you ensure that such a significant process runs smoothly and successfully? A successful digital transformation results from the right interplay between strategy, technology, and people. In this blog article, we present ten success factors that contribute to a successful digital transformation.

Recent research shows that a significant number of Dutch companies are actively engaged in digital transformation. Nearly 7 out of 10 Dutch companies (68%) view digital transformation positively and are actively pursuing it. And that’s no surprise, considering the main benefits of digital transformation: improved competitive positioning, faster time-to-market, more opportunities for data-driven decision-making, and better integration with other IT systems. Plenty of reasons to take digital transformation seriously. In another study, commissioned by Computable and conducted by Enigma Research, respondents identified several success factors that contribute to a successful digital transformation. In this blog article, we’ll dive deeper into the ten most important success factors.

1. Engaged employees

The human factor plays a crucial role in the success of any digital transformation. Your employees can make or break the process. That’s why it’s essential to involve them closely from the very beginning. This increases engagement and builds support across your organization. Through workshops and Q&A sessions, you gain insight into the pain points your employees experience with the current legacy environment. You can use this input to design and shape the new system. By offering the prospect of improved workflows, you help ensure that your employees approach the digital transformation with a positive mindset.

2. Data-driven approach

Use data to monitor progress and measure the effectiveness of your digital transformation. Invest in analytics and monitoring tools to gain insights into how the new systems are impacting business outcomes. Data allows you to fine-tune your transformation strategy and maximize its impact on overall performance.

3. Support from management

A successful digital transformation starts at the top. Management must not only recognize the need for change but also be actively involved and contribute constructively to the process. Without top-level support and engagement, the chances of success decrease significantly. Strong leadership and unwavering backing from management are essential to allocate the necessary (financial) resources and overcome obstacles. During a digital transformation, management serves as a role model, helping to foster a company-wide culture that embraces change.

4. Action plan

A successful digital transformation starts with a clear strategy and a flexible roadmap. This plan should be adaptable enough to accommodate changes as technology and business needs evolve, while still providing structure for implementation. It’s important to clearly define responsibilities within the plan—who is accountable for what? Appointing a project manager to maintain oversight is also highly recommended. Additionally, schedule regular evaluation moments to monitor progress throughout the process.

5. Skilled IT team

Having access to qualified IT personnel is essential. These professionals must not only have technical expertise but also be capable of bridging the gap between technology and business processes. If your organization lacks sufficient in-house IT talent, consider bringing in external support from an IT partner with proven experience in digital transformation.

6. Choosing the right technology

Selecting the right technology (hardware, software, and connectivity) is essential for a successful digital transformation. This includes implementing new, scalable technologies that enhance business processes. For digital transformation to succeed, systems and processes must be well integrated. Cybersecurity is also a critical aspect of the transformation journey. Ensure that your new systems comply with the highest security standards and that all company data is well protected. This is not only crucial for legal and regulatory compliance but also for maintaining your reputation and customer trust. A data breach could lead to hefty fines from the Dutch Data Protection Authority (Autoriteit Persoonsgegevens, AP) and reputational damage. Something you definitely want to avoid.

7. Sufficient budget

Ultimately, a digital transformation is about improving customer service and creating new added value for your business. Therefore, it is crucial to place the customer at the center of the transformation process. After all, it is the customer who purchases your products and services, thus giving your business its purpose. It is important to gain insight into customer needs and align the digital transformation within your company accordingly. Keep in mind that market conditions can always change, and your systems must be flexible enough to adapt to these changes.

8. Customer-centric Approach

A successful digital transformation is a gradual process that requires a thoughtful, step-by-step approach. Creating a carefully planned migration strategy is essential in this regard. Start with the least critical systems and gradually work your way towards the more complex parts. This phased approach means that the legacy system remains partially operational throughout the process. This iterative strategy, which breaks the transformation into smaller, manageable phases, often proves more effective than a comprehensive, one-time change.

This approach allows for mid-course adjustments and ensures that challenges from earlier steps are addressed in later phases. Throughout the entire transformation process, extensive testing and quality control are crucial. This applies to both modernizing existing applications and developing entirely new systems. Thorough Quality Assurance ensures that all systems function correctly, meet the specified requirements, and minimize potential errors or disruptions after implementation.

9. Phased implementation

Companies often opt for a phased implementation in digital transformation due to the complexity and impact of the process. They typically begin with simpler applications, while more critical legacy systems are addressed later. This allows organizations to apply lessons learned from earlier phases to subsequent implementations, improving the efficiency and effectiveness of the entire transformation process. This approach reduces the risk of errors and disruptions in business operations, and it also allows employees to gradually adapt to the new systems, which enhances acceptance within your company.

10. Employee training

A digital transformation means that new systems are being implemented, and employees must say goodbye to the legacy environment they are familiar with. Now they need to switch to new systems, which may not be easy to understand and master quickly. It’s wise to start training and workshops before the new systems are put into use. This way, your employees can get familiar with the new systems and have the opportunity to ask questions. Once the new systems are actually in use, ensure that someone is available on the work floor to provide support if your employees have questions or get stuck in the new system.

Do you want to achieve a successful digital transformation?

A successful digital transformation is a complex process that involves much more than just technological change. By investing in people, processes, and technology, and by integrating a culture of continuous improvement within your company, you can provide added value to your customers and strengthen your competitive position.

NetRom Software has over 25 years of experience with successful digital transformations and has supported hundreds of companies in this area. If you’d like to discuss this further and are curious about what we can do for your business, please get in touch with us using the form below.