Guide to Digital Transformation

Embracing digital technologies doesn’t just make life easier – it’s also a foundation of growth and success. Organisations that embrace digital transformation enjoy significantly higher financial performance, well above the industry average in fact.

However, if your team isn’t on board, or if you’re not actually willing to change, transformation is going to be tough.

Digital transformation is a fascinating topic and businesses that don’t take advantage of it will quickly get left behind. We know that it might seem overwhelming or out of reach for many business owners – and that’s exactly why we’ve created this guide.

This guide covers:

What is digital transformation?
Why digital transformation is a business priority
Benefits of digital transformation
Creating your digital transformation toolbox
and more!

Disclaimer: The information in this guide is current as at 14th Feb 2024, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this guide are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this guide. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this guide.

Download the Guide to Digital Transformation today.

What is digital transformation?

Digital transformation refers to the switch from traditional approaches to using digital technologies to perform business functions. But it’s not just limited to specific functions or processes – it can address how your business operates, how you serve your customers and the company culture you’re instilling. It can also refer to moving from a legacy system to a more innovative digital solution.

Why digital transformation is a business priority

If we’ve learned anything from recent global events, it’s that things can change in a heartbeat. Businesses that are agile are better placed to navigate those changes, and that’s where technology, access to technology and a willingness to embrace technology (and change) can really serve you as a business owner.

As technology advances, digital transformation is, and remains, essential, both in practice and as a mindset. It means you can run your business more efficiently and effectively, respond to customer needs and demands and also keep up with compliance.

Benefits of digital transformation

The benefits of digital transformation are innumerable, and as technology continues to advance, the list will continue to grow and evolve. But as it stands, here are the top benefits of digital transformation:

Cost savings
Saving time on manual tasks
Continued compliance
Clear, streamlined communication
Improved productivity
More time and capacity for strategic work
Improved customer experience and service
Improved revenue

Barriers to digital transformation

According to Ernst & Young, some of the barriers to digital engagement for SMEs include:

Lack of access to digital talent
Pressure to focus on immediate, instead of longer-term benefits
Need to balance innovation with digital security
Difficulty in measuring digital successes
Challenges in up- or reskilling existing staff
IT limitations from legacy architectures
Not knowing which new technology to implement
Regulatory restrictions or scrutiny
Uncertainty around how to align digital with the broader strategy
Stalled transformation after an initial period of progress
Limited benefits as these technologies are not adopted industry-wide or across borders

Common pitfalls in digital transformation

Before you jump on the digital transformation bandwagon, pay attention to these common obstacles:

Lack of clarity and alignment
Staying in silos
Lack of skills
Lack of planning
Not using data effectively
Internal resistance

Your digital transformation toolbox

While a journey of digital transformation can be challenging, there are a few tools that you can have in your toolbox to ensure a smooth and more enjoyable experience for all. Here are some that we think are essential to your toolbox:

A digital transformation roadmap

Just like every business is different, every digital transformation roadmap should be tailored to your business’ resources, capabilities and objectives. This is why we are such big fans of the Objectives and Key Results (OKRs) framework.

Cloud solutions

Cloud solutions and platforms can help you leverage digital transformation to streamline business operations by automating and simplifying processes. They can also provide tools that can help you work quickly and efficiently while also reducing errors and costs.

Get started on your journey towards digital transformation with our guide today.