Digital Transformation Services: What to Know and Consider

Digital transformation is an increasingly important priority for business leaders as technology continues to evolve and customer needs shift. A proactive digital transformation strategy can help organizations drive efficiencies, improve the customer experience, and maintain continued business relevance. On the other hand, lack of investment in digital transformation can lead to increased operational costs, cybersecurity risks, lost business opportunities, and challenges with attracting and hiring qualified talent.

Forward-thinking businesses embrace digital transformation services to more effectively adopt and implement emerging technologies. Understanding how these services can impact a company, as well as identifying available options for your organization and emerging digital transformation technologies, can help you select the right digital transformation services provider based on your specific business needs.

Table of contents:

• What are digital transformation services?
• Benefits of digital transformation
• Key digital transformation services
• The top digital transformation companies
• Tips for choosing the right service providers
• Overcoming challenges in digital transformation
• The future of digital transformation

What are digital transformation services?

Digital transformation services are resources companies use to gain outside expertise and consultations on digital transformation priorities, as well as strategy development, implementation, change management, and improvement. The most relevant digital transformation services will vary by organization depending on unique business goals and needs.

All digital transformation services aim to help organizations increase efficiency, stay ahead of the competition, and support long-term business relevance and success.The right digital transformation services provider can help organizations be better positioned to achieve strategic business goals by embracing technology.

The top digital transformation companies

Digital transformation is a significant and ongoing undertaking, so partnering with the right company to support your specific business needs is key. Many digital transformation services companies are available to help organizations of all sizes and across industries adopt the latest digital technology. Some companies focus on one type of digital transformation services, while others offer consulting, strategy, and implementation services.

We’ve identified a selection of well-known and top-rated digital transformation companies. This is not meant to be an exhaustive list. Other companies and service providers are available for your organization to consider based on your business goals and budget.

Benefits of digital transformation

While developing, implementing, and evolving a digital transformation strategy is a substantial investment, in the long run, an effective strategy will reduce overall costs by supporting more efficient processes and problem-solving. In fact, a survey of 400 enterprise technology leaders conducted by KPMG found that 56% of respondents believe the returns from digital transformation investments far exceeded their expectations.

Some of the benefits of business transformation include:

• Streamlined business operations for better efficiency. Digital technology can help centralize data, streamline processes, simplify collaboration across team members, and automate routine tasks so team members can focus on more strategic, impactful priorities. Effective technology also reduces administrative errors and frustrations that workers may face with outdated systems, helping drive improved business outcomes and engagement.
• Enhanced customer experiences and engagement. Through digital transformation, advanced technology can unlock key customer insights, which can help teams create more customer-centric business strategies. For example, organizations can leverage email, website, and social media insights to determine which content resonates most with customers. With access to this information, more targeted content and solutions can be developed that address customers’ key challenges and interests. As a result, an enhanced customer experience can drive revenue growth by better engaging prospects, driving loyalty among existing customers, and encouraging referrals.
• Increased data-driven decision making. Advanced technology such as data analytics, artificial intelligence (AI), and machine learning tools can unlock critical insights, enabling businesses to make better data-driven decisions. Sophisticated tools can automatically process and analyze large volumes of data at speed and scale above and beyond human capabilities. The right technology will identify patterns and trends to help make data-driven decisions such as identifying growth opportunities and business roadblocks that need to be addressed.

Key digital transformation services

Digital transformation is a broad term that can be interpreted in many different ways. Its varied forms can impact all areas of a business. This range can make any approach to digital transformation feel daunting and present challenges with knowing where to start and how to prioritize initiatives.

Three primary types of digital transformation services can help businesses prioritize and stay on track with digital transformation objectives.

Digital transformation consulting

Digital transformation consultants possess in-depth knowledge about the latest technologies and can help you determine which to prioritize in your own transformation. They assess an organization’s existing approach to digital transformation and outline recommendations for ongoing improvement.

Some steps digital transformation consultants may take when evaluating your business include:

• Taking inventory of any technology currently in use across the company
• Evaluating overall technology adoption and understanding across team members
• Completing a competitive analysis to understand your industry’s best practices as well as your competitors’ digital transformation strategies and approaches
• Identifying new and emerging technologies that can drive digital transformation success, such as cloud computing solutions, artificial intelligence (AI) and machine learning (ML) applications, and Internet of Things (IoT) integrations
• Outlining key business challenges or roadblocks that can be addressed by technology and digital transformation

Digital transformation strategy services

A measurable, impactful digital transformation strategy helps organizations have a plan of action to integrate and adopt new technology across all areas of the business. Digital transformation is an ongoing, cross-functional effort to adopt technology that drives business value; creating a strategy isn’t a one-and-done effort.

Key elements of a successful digital transformation strategy include:

• Aligning on overall business and digital transformation-specific goals
• Defining success metrics
• Setting a budget
• Communicating goals across the company
• Preparing for organizational change
• Identifying and selecting the best-fit technology
• Reevaluating and improving the strategy over time

Digital transformation implementation services

Developing an effective strategy is only one piece of successful digital transformation and the right approach is required to bring the strategy to life. According to a survey of 1,000 business leaders from enterprise-level organizations conducted by Insight, 29% of respondents said a significant proportion of their digital transformation initiatives didn’t reach completion or failed to meet the original objectives.

This can be due to team members’ resistance to change and challenges executing digital transformation initiatives at scale, among other factors.

Digital transformation implementation services can help ensure that once a strategy is outlined, implementation is smooth and effective.  

Steps involved in implementing a digital transformation strategy can include:

• Rolling out technology to drive business efficiencies, such as cloud computing solutions, AI-powered tools, and machine learning-powered data analytics platforms
• Setting expectations for technology use and adoption
• Training team members on how to effectively use and maximize the benefits of the latest technology
• Collecting team member feedback and answering questions
• Tracking and measuring goals
• Evolving, improving, and scaling the strategy

The top digital transformation companies

Because digital transformation is a significant and ongoing undertaking, partnering with the right company to support your specific business needs is key. Many digital transformation services companies are available to help organizations of all sizes and across multiple industries adopt the latest digital technology. Some companies focus on just one type of digital transformation services, while others offer consulting, strategy, and implementation services.

Benefits of engaging a digital transformation company include gaining an outside perspective on strengths and areas for improvement, receiving innovative ideas, accelerating technology adoption, and learning about best practices and the latest technology from service providers’ experience in the industry.

We’ve identified a selection of well-known and top-rated digital transformation companies. This is not meant to be an exhaustive list. Other companies and service providers are available for your organization to consider based on your business goals and budget.

Accenture

Accenture is a top global professional services company with five core practice areas, including strategy, management, digital, technology, and operations consulting. Its digital transformation capabilities aim to drive increased efficiency, greater business agility, and the unlocking of new value for employees, customers, and shareholders.

Features include:

• Actionable digital transformation strategy development that includes a clear vision, an integrated approach, a focus on value, and user-friendly, easy-to-understand insights
• Operations realignment guidance to improve business processes, such as improving customer service leveraging data and analytics or moving services to the cloud to drive productivity
• Ecosystem of technology partners to more efficiently enable digital transformation
• People change management to build a digitally skilled workforce that seamlessly integrates new technology into their daily lives

Boston Consulting Group

Boston Consulting Group (BCG) is a global consulting firm that partners with businesses to help them overcome challenges to grow, build competitive advantage, and drive positive societal impact. The firm’s digital transformation consulting services blend human and technical capabilities—which BCG refers to as a bionic approach—to support incremental, cost-effective, and sustainable digital transformation.

Features include:

• Comprehensive digital vision, outlining how digital is impacting a client’s industry and an overview of new offerings, operating models, and business models that digital transformation can enable
• Competitive assessment to understand digital transformation competitive advantage, positioning of the client, and any gaps in digital capabilities
• Recommendations for putting the right people in the right places—from leadership down—to enable digital transformation
• Detailed roadmap featuring budget, timelines, goals, and accountabilities for the digital transformation journey

Capgemini

Capgemini is a global consulting firm that specializes in information technology services and digital transformation. Capgemini leverages technology to enable transformation across the entire breadth of business needs, from strategy and design to managing operations. The firm has deep industry expertise in fast-evolving fields such as cloud, data artificial intelligence, connectivity, software, and digital engineering, and.

Features include:

• Thorough scoping phase to understand an organization’s unique challenges and needs and lay a solid foundation for the digital transformation journey
• End-to-end maturity assessment to understand current digital adoption and prioritize improvements
• Detailed roadmap and business strategy including the governance, organization, and processes a client needs for successful digital transformation
• Advanced analytics and AI that provide comprehensive insights to help businesses harness innovation and unlock new opportunities

Cognizant

Cognizant is a consulting firm that helps companies around the world get ahead of their business challenges, identify opportunities sooner, and outpace change. The firm’s comprehensive consulting services offered include process and operations consulting, business strategy, business analysis, and technology consulting. Cognizant’s digital strategy services help clients unify business and technology architectures, generate growth, and enable competitive advantage.

Features include:

• In-depth insights about customers, business and operating models, and organizations to shorten the time to develop a digital vision and strategy
• Recommendations to effectively prioritize digital initiatives that drive the most value
• Workforce transformation solutions to address current and future team members’ technology needs at all levels and help organizations compete in today’s digital landscape
• Change adoption tools and execution expertise to implement digital business transformation strategies and accelerate technology adoption across an organization

Gartner

Gartner is a leading global information technology research and advisory company that provides clients with actionable insights, guidance, and tools to enable faster, smarter decisions and stronger business performance. Its digital transformation strategy services aim to help CIOs and IT leaders avoid common pitfalls and lead smart, effective transformations by following best practices based on successful digital transformations by thousands of organizations.  

Features include:

• Digital scorecard with integrated tools to measure the maturity of digital initiatives, benchmark against peers, and address shortcomings
• Access to one-on-one expert advice to stay ahead of the latest digital trends
• Community insights and advice from peers in live cohorts and virtual discussion boards
• Comprehensive research to compare digital transformation views and preparedness with both peers and top-performing organizations  

McKinsey & Company

McKinsey & Company is a management consulting firm and a trusted advisor to many of the world's most influential businesses and institutions. For nearly 100 years, McKinsey & Company has partnered with businesses to accelerate sustainable and inclusive growth. McKinsey Digital, the firm’s digital transformation service vertical, helps clients by bringing together the capabilities needed to help organizations grow and thrive in the digital age.

Features include:

• An experiential, workshop-based approach to digital strategy development to help clients pinpoint emerging opportunities, find unexpected value, and create new businesses by harnessing the full power of digital
• Digital organization consultations to help businesses set up their organizational structure, culture, leadership, team members, and operating model for digital transformation success
• Expert recommendations on which technologies, skills, talent, and cultural changes are required to capture the value of digital transformation
• Hands-on training tailored to an organization’s needs to support a digital-first culture and encourage technology adoption

Tips for choosing the right service providers

The companies highlighted above are just a few of the many providers available to help your organization achieve your digital transformation goals. Selecting the right partner requires careful consideration. Consider the following steps and best practices to ensure your team is unified internally and help your organization choose the partner that best aligns with your business objectives.

Consider taking these steps before evaluating digital transformation providers:

• Identify business challenges that can be solved by digital transformation
• Take an inventory of existing technology at your organization, as well as technology gaps
• Define clear goals of your digital transformation strategy
• Outline a budget for digital transformation investment
• Confirm alignment on goals and budget across internal stakeholders

Once all stakeholders are aligned internally, the following tips will help you choose the right digital transformation service provider:

• Research top digital transformation companies, taking into consideration factors such as industry expertise, domain knowledge, digital experience, reputation and track record, technology capabilities, security and compliance, and costs
• Conduct a SWOT analysis of companies on your shortlist to better understand which providers are most likely to align with your business goals and needs
• Evaluate culture fit to identify providers that align with your values, communication style, business processes, and team dynamics
• Read customer reviews and case studies and reach out directly to existing or previous customers for feedback
• Request proposals or real-time demonstrations from top providers on your list
• Select a provider that can both meet your current digital transformation needs and scale and evolve with your business
• Negotiate terms and contracts before signing a formal agreement

Overcoming challenges in digital transformation

While digital transformation offers many benefits, taking a thoughtful, strategic approach to implementing new technologies is essential. Whether your business is engaging a digital transformation company or developing a strategy on your own, understanding key challenges in digital transformation and how to overcome them can help increase the likelihood of success.

Common challenges include:

• Addressing security and privacy concerns. Any new technology poses a risk for security and privacy concerns. Before implementing technology as part of your digital transformation strategy, confirm which security and privacy measures the provider has in place. Internally, also implement a comprehensive security strategy with robust data protection measures, ongoing employee training, and continuous monitoring for potential threats.
• Ensuring seamless migration of systems and processes. Migrating from one software system to another or integrating new technology at your organization can lead to system downtime or other challenges in the absence of a strategic process. To ensure seamless migration during digital transformation, develop a meticulous process with thorough testing, communicate effectively with stakeholders across the business, and have a rollback plan in place in case of any unforeseen issues during migration or technology implementation.
• Training teams for new tech adoption. Each time new technology is introduced at an organization, some team members may be slow to adopt or resistant to change—which can negatively impact digital transformation success. In fact, the KPMG survey cited above found that 40% of respondents say their organization’s digital transformation journey is hindered by an overall risk-averse culture that is slow to embrace change. To overcome this, ensure workers understand the goals of your digital transformation strategy, offer training targeted toward different learning styles, provide ongoing support, and set goals to track technology adoption and engagement.

The future of digital transformation

Digital transformation will continue to play an essential role in long-term business success and relevance across industries and verticals in the years to come. Data from Grand View Research shows that the global digital transformation market size was estimated at about $731 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 26.7% through 2030.

Below, we’ve listed some of the top trends driving digital transformation growth.  

Artificial intelligence (AI) and machine learning (ML)

Artificial intelligence and machine learning, while different, often go hand in hand. Machine learning algorithms leverage data to train computers and make informed decisions based on existing data points. These ML capabilities fuel the development and optimization of AI-powered processes.

AI and ML tools are becoming more widely adopted, with an increasing number of users using tools such as ChatGPT, GitHub Copilot, and DALL-E. In fact, ChatGPT set a record for the fastest-growing user base, reaching 100 million users within two months of launch in late 2022.

Blockchain

A blockchain operates on distributed ledger technology (DLT), which records each new transaction on a digital ledger distributed across a computer network. Blockchains store information electronically in groups called blocks. Information stored on a blockchain is considered secure and transparent.

Blockchain is seeing increased adoption across industries such as finance, supply chain management, and health care. Some of the more well-known ways blockchain is currently used include recording the exchange of digital currency, such as bitcoin, and the sale of digital goods like non-fungible tokens (NFTs).

Augmented reality (AR) and virtual reality (VR)

Augmented reality and virtual reality use technology to develop simulations that feel immersive. More specifically, AR augments a user’s existing surroundings by overlaying digital elements on top of a real-time view through a device such as a smartphone or headset. VR takes the immersive experience to the next level by replacing a user’s real-world environment with a virtual world, often experienced through a headset or similar device.

Some examples of ways in which businesses use AR include apps to show how furniture may fit in specific rooms in a customer’s house and retail capabilities that enable customers to try on clothes, accessories, makeup, and other products virtually before buying. Examples of VR include headsets that transform video game players into immersive worlds and travel experiences that enable users to explore exotic destinations from their own homes.  

Cloud computing

Rather than buying, owning, and maintaining physical data centers and servers, cloud computing enables businesses to access technology services, such as storage and databases, over the internet from a cloud provider. Top cloud providers include Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

Storing and accessing data in the cloud can increase productivity and collaboration by enabling team members to securely access data anywhere. Using the cloud improves security by spreading information across different data centers, rather than on a single server in an office building. Businesses leverage cloud computing in several ways, including but not limited to hosting websites, backing up big data, deploying software to a global workforce or customer base, and providing team members with remote access to essential technology.

Internet of things (IoT)

The Internet of Things (IoT) is a network of physical devices embedded with sensors, components, software, and other technologies that connect and exchange data over the internet. IoT devices range in complexity from simple sensors to complex machines, and collect and share data to increase automation and drive other efficiencies.

IoT technology has many applications, from smart home features such as connected devices, thermostats, and lighting, to the industrial Internet of Things (IIoT), which uses sensors and connected devices to monitor manufacturing processes, optimize production lines, and predict equipment failures. Some factors contributing to IoT growth include decreased costs of sensors and advancements in cloud computing, AI, ML, and data-driven analytics.

Boost your business with digital transformation experts

As organizations become increasingly technology enabled, digital transformation will continue to be a top business priority. Business leaders can benefit from turning to outside expertise to help outline digital transformation priorities and develop a successful, sustainable strategy.

Skilled independent professionals are available on Upwork with the expertise you need to identify the right digital transformation services, implement a scalable strategy, and drive tangible results. Digital transformation specialists can offer tailored strategies and services based on your specific business needs. Access top digital transformation experts on Upwork today.

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