Digital transformation is exciting but where do you even start?
Many businesses make the mistake of trying to transform everything at once, only to find themselves bogged down in half-finished projects that never quite deliver.
Successful digital transformation starts with knowing what to prioritize – you need to pick your battles.
So, which areas of your business should undergo transformation first?
Align Digital Initiatives with Business Goals
If you want your digital transformation to drive results, the first thing you need to do is make sure it’s aligned with your overall business strategy. Transformation for the sake of transformation doesn’t get you anywhere. Every digital initiative should be linked to a clear business goal, whether it’s improving customer satisfaction, driving revenue growth, or increasing operational efficiency.
Ensure that your digital transformation initiatives are aligned with your overall business strategy and objectives. – McKinsey & Company
A study by PwC found that 80% of businesses believe that alignment between digital transformation and business strategy is critical for success.
If your digital initiatives are tied directly to your strategic objectives, you’re far more likely to see real, measurable results.
Start by identifying the areas of the business where digital transformation can have the greatest impact on your goals, and focus your efforts there.
Assess Current Capabilities and Gaps
Before you can decide where to focus your transformation efforts, you need to know where your capabilities stand today.
Conduct an honest assessment of your current systems, processes, and skills.
- Where are the bottlenecks?
- Where are you falling behind competitors?
- Where are the gaps that digital tools could help fill?
Identify the areas where your organization is lagging behind and where digital transformation can provide the greatest value. – Gartner
According to a survey by Forrester Research, 75% of businesses believe that they need to improve their digital capabilities to remain competitive.
Assessing your current state is essential to determine where digital transformation can make the most significant impact. Think about addressing what’s holding you back and finding the right tools to solve those problems.
Prioritize Initiatives Based on ROI and Impact
Not all initiatives are created equal – some will deliver huge returns, while others might be “nice to have” but won’t make a noticeable difference to the bottom line. To make the biggest impact with your transformation efforts, you need to prioritize initiatives based on ROI and overall business impact.
Focus on initiatives that offer the highest return on investment and have the greatest potential to impact your business. – Deloitte
A study by McKinsey & Company found that companies that prioritize digital initiatives based on ROI are more likely to achieve successful digital transformation.
Take a look at the potential benefits of each initiative and weigh them against the costs and effort required. By focusing on projects that promise a high ROI and significant business value, you’re ensuring that your transformation efforts are both efficient and effective.
Consider the Feasibility and Complexity of Initiatives
Some projects, while potentially impactful, might be overly complex or resource-intensive for your organization at this point in time. It’s important to evaluate whether you have the resources—time, budget, talent—to execute the initiative successfully.
Evaluate the feasibility and complexity of each initiative to ensure that it can be implemented effectively within your organization’s resources and capabilities. – Harvard Business Review
A survey by IBM found that 60% of businesses struggle to prioritize digital initiatives due to their complexity and uncertainty.
Start with initiatives that are feasible to implement given your current resources. Success breeds success, so getting some early wins under your belt is critical to keeping momentum going.
Pilot and Iterate: Start Small, Scale Smart
The best way to mitigate risk in digital transformation is to start small.
Instead of committing significant resources to a large-scale initiative, begin with a pilot project. A pilot allows you to test the concept, work out any issues, and measure the real impact before scaling up. It’s an approach that lets you learn and adjust, which is key to staying agile.
Start with pilot projects to test the feasibility and effectiveness of your digital initiatives before scaling them up. – Accenture
A study by McKinsey & Company found that companies that use a pilot approach to digital transformation are more likely to achieve successful outcomes.
The key here is to learn fast. If something works, great—scale it up. If not, adjust and move forward. Pilots are a smart way to reduce risk while driving innovation.
Improving Customer Experience Comes First
If you’re not sure where to begin, start with your customers. Improving the customer experience should always be a priority.
It’s the part of your business that drives loyalty, satisfaction, and growth. Digital initiatives that make life easier for your customers—like personalized interactions, 24/7 accessibility, or better service channels—often yield immediate results that impact your bottom line.
Think about e-commerce improvements, mobile app development, or implementing a digital CRM. These initiatives directly affect how customers perceive your brand and how easy it is for them to interact with you.
Customer-centric transformation is often the fastest way to see tangible results.
Fix What’s Broken
Every organization has areas that are underperforming—those pain points that frustrate both employees and customers. By prioritizing these areas for digital transformation, you’re not only solving problems but also sending a clear message: transformation is about making work better for everyone.
Use data analytics to identify the biggest bottlenecks and inefficiencies in your current processes.
These might not be the flashiest projects, but solving them first can provide quick wins that boost morale and build momentum.
Build a Culture of Change
You need to create a culture that supports change and encourages resilience. An inclusive culture, where people feel they have a voice and are part of the journey, makes all the difference in how smoothly transformation goes.
A positive and inclusive culture can help employees feel empowered and motivated to embrace change. – Gartner
A McKinsey study found that companies with strong inclusion and diversity are more likely to succeed in digital transformation. People need to feel valued, supported, and heard. When they do, they’re more likely to engage with the transformation journey and contribute to its success.
From Vision to Action
Digital transformation calls for prioritizing the right initiatives, starting where it matters most, and creating value that’s visible and impactful.
Align your digital initiatives with your business goals, assess current capabilities, focus on high-impact projects, and make sure they’re feasible to implement. Start small, learn, and grow from there.
Remember, digital transformation isn’t a sprint—it’s a marathon. Prioritize the right initiatives, and you’ll keep moving steadily toward a more agile, innovative, and successful future.
Choose wisely, focus strategically, and make your digital journey a success.
This article is written by Christina Lim, the author of the book Not a Marketing Textbook. She is a business advisor and startup mentor, she has led multiple digital transformation initiatives in her career.
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