The speed of technology over the last twenty years has been staggering. How businesses were run then to how they are run now can be quite unrecognisable but when it comes to digital transformation, businesses are still hesitant to make deep company changes. The “We’ve always done it like that” is still a common phrase but those companies who have embraced the new digital world are creating new value opportunities for customers, employees and shareholders.
So, how do you go about putting the wheels in motion when it comes to digital transformation and, more importantly, raising the funds to drive this cultural change? The secret to getting buy-in is in aligning the deepest needs of the organisation with the benefits that a digital transformation solution provides.
Three of the most common challenges when it comes to raising funds for transformation are;
- Don’t just think about the return on investment
- Don’t treat it like a project, it’s a cultural change right through your business
- It really is all about the benefits for all the stakeholders, including the business, customers, employees, suppliers and shareholders
It’s Not All About the ROI
While smaller funding decisions are based entirely on ROI, an organisation-wide digital transformation initiative is not one of those. Get approval for funding by communicating the value of the initiative based on non-ROI factors. Think about the impact the digital solution will have in terms of your long-term business strategy.
Here are 3 key areas to focus on:
- The Revenue Generating Activities of the Business
Digital transformation is as much about keeping the lights on as it is about dealing with disruption from non-traditional competitors (think Uber). Everything the organisation does to generate revenue will benefit. Talk about the impact of transformation on the entire customer journey and the back-office systems that support it. You may even uncover new ways of monetising existing activities and data.
- Customer, Prospect, and Employee Perception
Think about how digital transformation will affect the way your organisation is perceived. Pitch the idea of ensuring that customers and prospects will see the organisation as more forward-thinking and a better investment. You’ll gain and retain better talent when employees see that your business is relevant and growing.
- Outpacing Competition
Digital is more than just newer technology. Digital transformation solutions not only empower your organisation to do what it does better, they also help ensure you are focusing on the right things. Show how your digital solution will ensure your competitive edge is razor sharp. This one is so important that, if done correctly, you’ll avoid several funding pitfalls.
Digital Transformation Is Not a Project
Digital transformation is more of a journey than project. To help with funding, you need to sell the idea of a continuous effort – a movement along a path of increased operational effectiveness. Show how digital transformation solutions will help fuel the organisation’s innovation and core competencies. Convey the idea that the solution isn’t a ‘thing’, rather it’s a way of doing business.
Spend time with end users and managers to uncover the deeper impact digital transformation will have on the work they perform. Weave your discoveries into the story of the transformation journey you are telling. The goal isn’t to become a master storyteller, but to clearly convey the deeper benefits the organisation will receive.
The journey to implement new solutions should line up with the organisation’s core mission. Your goal is to show a lender a journey that enables significant and progressive growth.
It’s All About the Benefits
The goal of any digital transformation solution is business enablement. Don’t focus on features and technical details when making a pitch for funding. Instead of talking about data analytics, business intelligence, and transforming IT systems, talk about the benefits.
Selling The Benefits
Investors and lenders will want to see how your business will grow through digital transformation so focus on supporting your organisation’s core mission and solving its deepest needs. One helpful exercise is to ask yourself “So what?” Write down a core feature of a digital transformation solution and then ask yourself “So what?” Your answer is a benefit that just might get a lot of attention.
We could say that a core feature (not a benefit) of digital transformation is business intelligence. A mortgage company’s mission is to provide clients with the best financing solutions. A core feature of their business intelligence is that they could provide real-time decision making. It could be that your business wants to control risk more accurately or deliver a more immersive customer service.
You can help decision makers who hold the purse strings see that the digital transformation solution is all about achieving results by empowering rapid and decisive action.
Talk to us today if you are looking at ways to grow your business. We can tailor-make a funding solution with various options and advise on how to secure that finance needed to help drive your business forward.