What is digital transformation exactly?
Should you embrace it if you haven’t already?
Is digital transformation a focus for your company in 2021?
We’re sure you’ve been hearing about digital transformation for quite some time now and searching for some guidelines to satisfy your queries. We’ll go through everything from what is digital transformation and why do your company needs it.
According to Deloitte, “Digital transformation is all about becoming a digital enterprise—an organization that uses technology to continuously evolve all aspects of its business models (what it offers, how it interacts with customers, and how it operates).”
Your business should evolve in tandem with technological advancements. It’s no longer about businesses deciding to transform digitally; it’s about deciding how to transform. Even before the epidemic, new and transformational technologies were swiftly entering the workplace, allowing businesses to innovate and prosper in a more digital environment.
But then came 2020, and what was expected to take years had to happen in a matter of months, if not weeks. From small to large businesses, digital transformation is a must. That message comes through loud and clear in almost every keynote, panel discussion, article, or study about how businesses can stay competitive and relevant in an increasingly digital world. However, some corporate executives are still unsure what is digital transformation exactly.
What is Digital Transformation?
As every company’s digital transformation will be distinct, it isn’t easy to come up with a universal description. However, we describe the digital transformation in broad terms as the integration of digital technology into all aspects of a business, resulting in profound changes in how firms function and give value to consumers.
Beyond that, it’s a shift in culture that necessitates firms challenging the status quo on a regular basis, experimenting frequently, and being comfortable with failure. In a sentence, the term “digital transformation” refers to the use of new technologies and procedures to address corporate challenges and delight consumers.
Digital transformation is the reinvention of business in the digital age. For businesses, this involves looking for methods to improve the end-user experience regularly. This might be accomplished through enhanced on-demand training, data migration to cloud services, artificial intelligence, and other methods.
However, many businesses have yet to contemplate their digital transformation, maybe due to a lack of knowledge about what is digital transformation or sometimes because of a lack of awareness – putting their future company operations at risk.
Wait a minute! Before going on, it would be a good idea to switch gears and consider why digital transformation is not only necessary but critical to your business. Are you ready to discover the reality?
7 Reasons Why Your Business Need Digital Transformation?
Your company should undertake digital transformation for a variety of reasons. However, the most reasonable explanation is that it is a must: It’s a matter of life and death. The capacity of a firm to quickly react to supply chain interruptions, market challenges, and rapidly changing consumer expectations has become important in the aftermath of the epidemic.
Companies may connect the dots on the customer journey in ways that weren’t feasible previously by utilizing workflow automation and sophisticated processing, such as artificial intelligence (AI) and machine learning (ML). While the return on investment from digital transformation is dependent on a number of things, the appropriate technology may significantly enhance how your company operates and how consumers interact with it.
Before moving forward – See the quote by MARC BENIOFF, CHAIRMAN AND CO-CEO, SALESFORCE
1. Data collecting has been improved.
Most organizations amass mounds of data about their consumers, but the true advantage comes from analyzing that data to propel the company ahead. Digital transformation develops a method for acquiring the relevant data and properly integrating it for higher-level business insight.
2. More effective resource management
Information and resources are consolidated into a set of business tools through digital transformation. Rather than having disparate software and databases, it puts all of the company’s resources together in one location. In 2021, organizations will utilize an average of 900 apps. As a result, providing a consistent result is quite challenging.
Digital transformation may bring together applications, databases, and software into a single corporate intelligence repository. There is no specific thing as a digital transformation department or functional unit. It affects every aspect of a company and may lead to process innovation and efficiency across departments.
3. Customer insights based on data
Customer insights may be unlocked with data. You may establish a customer-centric company plan by better knowing your customers and their demands. These insights can assist promote business success by combining structured data (personal customer information) with unstructured data (social media analytics).
Data allows tactics to provide better results.
1. A better overall client experience
When it comes to their experience, customers have high expectations. Customers have grown accustomed to having an abundance of options, reasonable costs, and quick delivery. The next battleground is customer experience (CX). According to Gartner, more than two-thirds of businesses claim to compete primarily on customer experience. They predict that by 2021, that figure will have risen to 81 percent.
2. Encourages the adoption of digital culture (with improved collaboration)
Digital transformation supports a digital culture by giving team members the necessary tools adapted to the specific context of the business.
While these technologies make communication simple, they also aid in the digital transformation of the entire enterprise. This digital culture will become increasingly important in the future. It necessitates upskilling and digital literacy.
3. Profits have increased.
Digital transformation improves the productivity and profitability of businesses. Take a look at the following findings from the SAP Center for Business Insights and Oxford Economics:
- Eighty percent of businesses that have completed digital transformations have seen an increase in earnings.
- According to 85 percent of respondents, their market share has grown.
- On average, leaders anticipate a 23 percent increase in income over their competitors.
4. Agility has improved.
Organizations become more nimble as a result of digital transformation. Businesses may boost their agility with digital transformation to boost speed-to-market and embrace Continuous Improvement (CI) techniques by borrowing from the field of software development. This enables for more rapid invention and adaptability, as well as a route toward progress.
In order to grow, whatever a company’s future vision is, it must involve digital transformation. To be adapted to changing business environments, businesses must change themselves. In an ideal world, IT spending is motivated by the need to accomplish business objectives. Digital transformation should be focused on business results, innovation, and continual development, according to business leaders.
Now that you understand what is digital transformation and why it should be one of your top priorities, you may be considering the next step: how to do it. Learn how open-source software, which has many advantages and features over proprietary software, may benefit your business. Not only that, but it will assist you in technologically preparing for future, speedier advancements. Your ability to compete will be more than assured.
So, what exactly are you waiting for? The digital revolution of your firm begins in three, two, and one! I would like to recommend reading a wonderful article about Digital Marketing that will help you to transform your business to the next level.
