Digital transformation has become one of the most talked about topics in the last few years. But what does it really mean? What are the key areas where digital transformation is happening? How can you be sure that your business is ready for the changes ahead?

Unsurprisingly, the COVID-19 pandemic has forced many businesses to fast track their IT strategies which is evidenced by an increase in global spending. It was reported that IT spending is set to reach 4.1 trillion in 2021, up 8.4% in 2020.

It is something that every business needs to consider or you’ll get left behind and suffer the consequences. But should anyone really be spending so much on their IT? Let’s find out.

1. Why digital transformation is necessary

Digital transformation is the process of taking your traditional business and using digital technology to modernize it and make it more efficient. It’s a trend that’s happening in every industry, from media to healthcare. 

Many businesses no longer prefer the traditional business model and want to adopt technology that will help them sell more, move faster, and solve customer problems in an easier way. Some of them are using Big Data and AI to shape how they do their business and what tools they use.

Research found that 23% of surveyed companies had little to no dependence on digital technologies in some shape or form. The rest are either fully digital or use a hybrid approach. The numbers speak for themselves when it comes to digital transformation’s necessity. 

But how can businesses adapt and meet the expectations of their clients? Here’s what you need to think about. 

Digital technology entails many changes to how your business works. It will require a lot of resources, like manpower, software and hardware, as well as the different infrastructure needed to operate these tools. 

As many businesses use multiple IT systems, it will be crucial for them to have the right infrastructure to meet the changes and make the digital transformation work efficiently.

2. Data and analytics is everything

Companies that are facing digital transformation should aim to make data-driven decisions that improve their business performance. When it comes to data analytics, it can play a major role in taking your business to the next level.

As an example, Netflix digitizes its audiovisual data in order to make it accessible all over the world. In addition, it’s using Big Data to analyze everything that its subscribers watch, using those insights to inform its business strategy.

The same can be said about creating value in every part of your company. Analytics can help you identify how to improve customer service, better adapt your marketing campaigns, and create better customer experiences. 

The analytics side of business includes data from A/B testing, customer insights, and social listening. It’s evident that data is at the core of influencing business decisions today. 

In order to make data-driven decisions, it’s worth studying your customers’ behaviors across different channels. Track down where they are seeing the most friction or unhappiness around your digital marketing efforts and put processes in place to address it.

3. How businesses can prepare for digital transformation

One study found that almost 90% of respondents were expecting a digital disruption of some sort. However, less than half could actually say they were ready for this change.

Whether you like it or not, digital transformation is going to impact your business somehow. So how can you prepare for this? 

It’s appropriate to start thinking about transformation with collaborative brands, such as Spotify. Here’s why. Sure, Spotify is a music streaming platform, but it also helps you create podcasts, listen to music, watch videos and play games.

Brands, such as Netflix, pride themselves in what they stand for. The company has pulled off a successful digital transformation through collaborative marketing and digital tools.

Collaborative marketing is good business because everyone wins. The biggest win though is that Netflix gained insight into where its users were spending their money and why, so it created its own place.

That insight is priceless, and this is why cultural brands are being actively guarded and developed. Perhaps you remember the first cultural brand you started to work for or one that you realized you could use your creativity to promote? In each and every case, you are helping others realize their career goals. 

Companies know that collaborating with other cultural brands is a good investment. From that point on, the collaborations get bigger and better. 

4. How you can embrace technology to succeed in a transformed market

It’s important to embrace technology so that you can continue to succeed in your business. If you own a real estate brokerage, for example, you’ll need to use the Internet to market your business, to communicate with your clients, stay competitive, and to find new listings. 

The Zillow Group bookmarked certain areas of the Internet where they’re creating new opportunities for the real estate industry. Besides, such sites’ popularity continues to grow, and they can help up-and-coming real estate businesses jump start their digital strategies sooner than is normally possible.

Finding actionable opportunities

The new technology trends worth your attention include smarter searches, intelligent personal assistants, user-aided home automation, and new forms of cloud-based interactivity. Want to be a part of this movement? Then start doing on-page SEO to make sure that people are finding your business when they need it. 

Big-box stores, for example, have started increasing the use of self-checkouts, zero-contact security, screenless entrances, and high-speed internet to serve patrons through the COVID-19 outbreak. In sum, the grocery industry has added high-tech ways to serve its customers in times of high demand.

Since such trends are expected to continue, many real estate transactions might take place online if market participants play their cards right. 

Intelligent personal assistants can do much more than help computers with repetitive tasks. They can take the user’s orders and turn them into reality. 

For example, smart refrigerators can be programmed to return milk late in the day so it doesn’t go to waste. Digital transformations are happening at a rapid pace, and you need to be sure that your business is ready to take advantage of the changes ahead.

Today, we live in a digital world where the Internet and social media have changed the way we live and work. Digital transformations are happening at a rapid pace, and you need to be sure that your business is ready to take advantage of the changes ahead. 

Following these steps will help you see the benefits of these digital transformations. And the most important responsibility is to be ready to make these changes for your business. 

Other things to consider

Digital transformation cannot be achieved in a vacuum. It also requires the constant changing of business models and having a strong team in place to help you run the entirety of the race. Here are a few things to consider for if and when you decide to embark on your digital transformation journey.

• Diversify. Diversification helps you preserve capital, protect your company from swings in the market, and minimize your risk. Diversity gives you an opportunity to find new routes to grow your business and protect your investment. Leave old routes for dead!

Be prepared. In times of crisis, consumers rush to buy the products and services that retain their loyalty and high price. Make sure that what you sell is of high quality, has a perfect fit for your consumer, and solves a problem.

• Incorporate technology. Technology is everywhere. Digital transformation is bringing the latest apps, platforms, technology, and systems into your business, making it easy for your workforce to work and making your business successful. If you have a modern and comfortable work environment where everyone can access information and communication technologies easily, you are ready for digital transformation.
• Network and engage your team. The LinkedIn and Facebook groups are top-of-mind when companies plan for new opportunities and reach out to professionals that they are interested in. Facebook groups are super-easy to create, join, and manage.

Digital transformation is an inevitable part of any business or organisation’s operational strategy in the 21st century. It’s been established that this is a necessary endeavour that requires preparation and embracing of technology as you focus on the four aspects.

Digital Grind knows all about your digital transformation journey and is well endowed with the necessary expertise that can take you through this journey. Speak to us to learn about some of the digital solutions your organisation can put in your arsenal.

From self-driving cars to the rise of chatbots, we’re seeing a rapid acceleration in artificial intelligence and machine learning — and it’s changing the marketing world. 

Tech research firm, Gartner, predicts that by 2020, AI will be a $3.9 trillion business. Businesses need to prepare for this inevitability by taking action and capitalising on the opportunities artificial intelligence can bring to their business.

Preparing for the future

When it comes to the future of marketing, opinions are divided. Some experts believe that AI will change the way we live for the better and boost our economy. Others see it as a potential threat to humankind and we can understand why, at a cursory glance. 

Artificial intelligence is getting smarter. It’s approaching the same level of intelligence as human beings, and there’s no question that it will continue to become more relevant as we find new use cases for it in a digital world. 

As it does so, it will continue to have an impact on many aspects of our lives, including on the way we market our businesses and how we interact with brands as consumers. But in a best case scenario, this intelligence will be used to heighten human potential rather than cannibalise it. 

Why is it taking so long?

AI has been a hot topic for years, but it’s only recently become widely accessible and affordable enough to be utilised in business applications as a standard. What’s more, advancements in machine learning technologies and the rise of big data have fueled interest and sparked new research into AI’s potential for democratising access to opportunities and unifying the world with technology. Let’s get down to what it is at its core and why it’s so relevant to us as modern marketers. 

1. What is artificial intelligence?

Artificial intelligence (AI) is the intelligence exhibited by machines. In computer science, an ideal "intelligent" machine is a flexible rational agent that perceives its environment and takes actions that maximise its chance of success at some goal.

We’re already seeing a number of applications for this in the marketing and comms world - particularly in the social listening and monitoring space. This is, in part, why marketing has changed so much over the last 5 years. 

2. Why it’s crucial to your new marketing strategy

Marketing comprises a range of activities that are typically focused around understanding consumers and their interests in a modern context. By simulating or supplementing human intelligence, we have a range of benefits available to us on both sides of the messaging fence. 

• Streamline resources. Internally, AI can support businesses in their process goals. Think of a SlackBot for example that provides useful tidbits of information or reminders to the team. Similarly, word prompts and email suggestions can take some of the mental work out of completing tasks.
  
  
• Target content to specific audiences. AI allows you to get information about individual customers and prospects so that you can then tailor marketing campaigns to them. This is a lot more effective than generic marketing campaigns. So, for example, if you want to know what your consumers are saying online or how they behave, AI can help scan trillions of data points to collate a profile for you - making quick work of building personas or targeting specific demographics.
  
  
• Interact with less manpower. Artificial intelligence can communicate with your consumers on your behalf. And, with the help of machine learning, it can change its behaviour to accommodate their interests and needs. Automated responses can be a useful tool when customers message you on social media platforms. Improved interactive voice systems also hold some efficacy when it comes to supplementing manpower.
  
  
• Delight and engage automatically. While AI technology is still relatively new to consumers, it still has the power to delight them, even in simple applications. Acknowledging their DM with an automated message, can be a powerful way to increase your response time and offer them useful resources for what to do next.
  
  
• Prepare for future advancements in technology. As technology advances, the possibilities for marketing automation become endless. Artificial intelligence can help take a lot of the manual work out of marketing and allow you to focus on the creative aspects of your work. However, there’s another important aspect at play. Brands that want to succeed beyond web 4.0 need to have the infrastructure, skill and understanding to operate in a hybrid world of virtual, artificial and physical environments. 

3.. How to use it effectively in your business

• Use it to intimately know your audiences through media monitoring and social listening
• Integrate AI into new brand activations and media campaigns
• Automate engagement through chatbots and profile growers
• Activate your brand with creative concepts that incorporate new technologies. 
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All told, AI is no longer a far-off concept that may or may not impact our realities in the near future. It’s very much here in familiar interfaces and chat applications that people encounter on a daily basis. Even companies like Google have incorporated it into their document creation, suggesting words and helpful tools when users start to write. However, as the capability and access grows, so does the scope of opportunity to use this technology in more exciting and novel ways. 
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Don’t get left behind

Speak to us about your next AI project or how you can incorporate it into your existing marketing campaigns. 

To the untrained ear, the phrase “martech” sounds like another buzzword, and maybe in some ways, it is. It seems like everybody is adding the “tech” to words that already exist these days and making it a thing. However, there is real merit to understanding the intricacies behind the growing movement towards using technology in marketing and the applications and mechanisms that make this possible. 

As brand owners, playing in the marketing space, there are universal challenges that we have to overcome and tech provides us with a ton of ways to get there. 

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The data conundrum

One of the biggest problems we face in the digital landscape today is making sense of enormous amounts of data available to us. In fact, according to TechJury, “1.7MB of data was created every second by every person during 2020” and these numbers only seem to be growing. With such a substantial base of information to sift through, it can seem impossible to draw truly valuable insights and manual detection of brand mentions can only get us so far. There just aren’t enough hours in a day or people on Earth to do the job of monitoring software, which is so key to improving performance in our industry. 

Does this mean that human power is now redundant? Of course not. But it is a good example of how embracing martech makes our everyday operations more efficient and helps create the right environment for smarter people-power. Without social listening and media monitoring, we create unimaginable amounts of work for employees, and by introducing data that needs to be manually vetted and constantly added to, we’re back at square one in terms of lacking resources for comprehending the digital spaces we operate in.

According to GlobalNewswire, the media monitoring software market was approximately USD 2,260 million in 2018 and is expected to generate around USD 7,236 million by 2027, at a CAGR of around 13.9% between 2019 and 2027”. What does this tell us? That data filtering is on the rise, and is quickly becoming part of our everyday operations in terms of monitoring, listening and reporting. 

As a result of this, new SaaS solutions are springing up around the globe, with major players in competition to get the monopoly. For brands and agencies, this shows an important skills gap to fill when it comes to understanding this software and developing the ability to draw meaningful insights and base campaigns on key findings. In order to future-proof the success of your digital marketing, you will need a firm grasp on the data landscape around your brand and the infrastructure to understand it. 

Martech skills development will grow massively in select nations

While the world is already adopting marketing technologies at a faster rate than pre-pandemic, we’re seeing a massive uptake of interest and skills development in tech-driven nations. For example, the first knowledge hub, related specifically to martech, popped up in the UAE in 2019. Now, only 3 years later, there’s a range of publications and supporting organizations coming to the fore, such as MartechNews and the Daily Martech Roundup, each with loyal followings. 

Spending and investment is on the rise

In the Gartner 2019 - 2020 survey (which conducts research from the responses of over 340 participants), it was reported that top-line marketing spend would decrease for the first time in over 5 years. So, this means that martech spend should decrease too, right? But the opposite has happened. The same survey findings showed that “martech spending rose to 29% of total budgets” - a phenomenal leap in light of the current scarcity of resources.

What does this mean for businesses, brands and entrepreneurs? It’s time to adopt or die. This level of investment and shift in spending is usually spurred on by greater ROI and predictive forecasting, which means the data is showing consistently high returns, either on resource savings or generation, that comes as a direct result of using martech more. 

New tools are emerging at a rapid rate

While some technological industries are forging partnerships within the ranks, martech seems to be a competitive and fast-paced environment. In fact, Martech Today reported that there are more than 8000 notable tools currently on the market for combining brand messaging and analytics with tech. 

These were mostly data analysis tools. To some, this may seem like an opportunity to join forces, but it appears that barring a few buyouts and acquisitions, we still haven’t quite solved the problem of adequately centralising data analytics and media interactions. Until this is achieved, and someone takes the monopoly, a rang of tools will continue to emerge.  

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Preparing for the future

With growth in the martech sector becoming more evident and having an increasingly significant impact on marketing professionals, a few things are clear. The first of which is that brands must put the infrastructure in place to navigate a changing digital landscape or face some level of becoming obsolete. In short, there are a few critical steps towards preparing for the continued rise of martech:

• Setting up infrastructure requires internal skills development and enlisting the help of expert service providers who already understand the space.
• Marketing tools can automate daily tasks and take the grunt-work out of manually interpreting data. As this becomes the norm, it’s important for brands to be able to use and interact with these tools.
• Businesses should designate marketing teams to help them continue to drive brand growth and capitalise on the growing level of opportunity available to them.
• Outsmarting competitors will mean savvy, integrated marketing that’s based on data but does not forgo the human element. 
• A bigger focus on allocating resources to marketing is a must in order to stay competitive and stay relevant to key audiences. 
  

At Digital Grind, we work tirelessly to understand the digital landscape and to keep building our technical infrastructure to meet the growing demands of the industry. Speak to us for more information or enlist our services on your next project and we can start to work together to ensure your business is fit for the future.