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Digital Transformation – What does it mean for Nonprofits?
If you are in technology or have anything to do with technology, you might have heard the term Digital Transformation at least a few times in the recent months, if not weeks. If you make purchasing decisions and get solicited by vendors, then I am certain almost all of your vendors have some sort of solution for this so called “Digital Transformation” problem that they are pitching to you. I guess all of us have been there and some of us might be actually thinking what this Digital Transformation actually means…for me.
Digital has transformed how we shop, listen to music, read the news, even make dentist appointments. So to keep up with customer expectations and competitors, businesses need to steadily evolve too. This evolution of transforming such business processes and practices from once paper based or human centric to now app/device/voice based or automated/semi automated is largely termed as “Digital Transformation” – Yet according to technology media company IDG, 89% of companies plan to adopt a digital-first strategy, but only 44% of them have actually done it. If your business is among the 56% stuck on the planning (or pre-planning) phase, don’t worry, you’re not alone.
Definition – Digital Transformation refers to the adoption of digital processes and tools to achieve strategic business goals. It’s a complex, multifaceted process that represents a massive cultural shift in the workplace and changes that affect every part of an organization.
What does it mean for Nonprofit Organizations?
This multi-part article explains the unique opportunity presented to the Nonprofit industry by Digital Transformation and why they should be aware and thinking about this. Digital Transformation is an ongoing, evolutionary process that is bound to touch almost every aspect of your business from fundraising, to engagement, to operations and administration. It is not an IT or Accounting project but an organization wide effort that will require buy-in and commitment from the highest levels within your organization.
Some high-level benefits nonprofit organizations have seen from their Digital Transformation Initiatives
- Increased Impact – As wealth changes hands between generations, it is important for fundraisers to have all the tools necessary at their disposal to retain existing and attract new donors.
- Optimized Operations – Automation technology when introduced in appropriation can drastically improve back office operational performance.
- Consolidate Processes – As the pressure to do more with less increases, organizations are forced to disrupt and develop new processes that were not possible before, coupling this with the advents in technology and automation, the once lengthy work process can be streamlined to realize efficiencies across the board.
- Data Driven Decisioning – With sleuth of data currently available with various touch points across mobile, email and social, it has become imperative to make decisions driven on findings and trends.
- Increased Reach – We know more about our constituents now more than before; reaching out to them on things that matter to them, when they want, on their device of choice will only increase engagement. Targeted segmentation will yield results like never before.
- Increased Security – New Technology, Consolidated Processes and optimised Operations coupled with appropriate security protocol will the organization’s security posture.
Although embarking on a Digital Transformation journey is intriguing for any Nonprofit Organization, the road ahead has several challenges. In the next article we will discuss some of the challenges and outline steps to get started.
What are the challenges along the way?
- Organizational Change Management
How do I get started?
- Setup a Framework
