What is Digital Transformation?
“Your business should evolve as technology evolves”.
When the organization uses technology to continuously evolve all aspects of its business models then it is applying Digital transformation.
Digital transformation is when the business is applying new tech and redesigning the current approach. In other words it is the continual adaption of digital technologies by creating new or modifying the current(existing) business.
Key areas of digital transformation
1.Business Process
Process transformation includes many activities—such as analytics and data—and the new ways to process them. New tools and data enriched the collaboration between people, procedures, services and applications.
Business process transformations can increase consumer reach and results in better leverage of the team’s skills. Hence, digital transformation provides better interactions between customers and employees.
2.Business Model
When incorporating the business model with technology it will lead to drive revenue and improve the customer experience, not just implementing technology for the reason to be modern and up-to-date with technology. As an example, trending today is Netflix and how it changed the DVD movie selling industry into online streaming service.
Digital transformation brings on fundamental changes in products and services.
3.Domain
Digital technologies serves businesses by identifying and executing opportunities in many new market segments. This establishes a digital transformation of domain. The slightest benefit of domain transformations is that it will help companies diversify, but when done to the maximum it will drive success in current business units.
Amazon, as an example, launched the Amazon Web Services (AWS), which is the largest cloud computing provider in the time being.
4.Cultural/ Organizational
Culture is one of the biggest factors in determining the success of any digital transformation.
There are different people using various systems; getting everyone on the same exact page and willing to accept changes can be challenging, but it is worth it if the business delivers an overall better outcome to their customers.
Pros of the transformation
1. Enhanced data collection
Improving data collection and analysis is one of the main benefits of digital transformation.
With the digitalized data analytics tools, it becomes more easy to monitor, collect and analyse customer data for making accurate decisions.
Data collection and analysis process led to opening new opportunities for digital businesses. Simply, it helps to enhance business strategies by studying the online pattern and habits of the consumer.
2.Increased profits
By improving customer experience and engagement you will increase customer loyalty. As a result, the customers will stick with your company and eventually will get more deals.in addition, digital transformation opens more opportunities for new sales markets and channels. Digital transformation is expected to deliver measurable ROI when implementing strategic IT.
3.An overall better customer experience
By enabling the employees to work smarter they will work more accurately thus, result in better customer experience. When connecting enterprise-wide systems and technologies it will universalizes the customer experience all over the globe, regardless of when, where, or how they choose to interact.
4.Improved decision making
Using modern BI tools and dashboards, the management can take this flow of data and gain insights right away. This lets them react much faster, yet more accurately than other businesses who lack these capabilities.
5.Improved productivity
When automating many tasks that were done manually and integrating data throughout the organization, this empowers the team members to work more efficiently and effectively.
By doing that, and having the right technological tools working together the business will streamline workflow and improve productivity.