Why your business needs digital transformation

Digital transformation is a buzzword today and it can mean a lot of things to many people. To help you understand why it’s so important, we gathered definitions and examples of digital transformation that could inspire your future strategic direction.

In essence, digital transformation reshapes the way you do business, interact with customers, serve the market, and model the culture inside your company.

Read on to find out more about digital transformation.

Digitization vs digitalization and digital transformation

Digitization is turning written and recorded information into a digital form that could be processed by a computer. It’s a first step in a digital transformation process.

Digitalization is using digitized information to improve your business and gain valuable insights. By connecting processed and refined data with technological solutions, you gain tools that transform the way you do business.

While digitalization can be an isolated project that improves one aspect of your business, digital transformation is a strategy of adapting your business operations and culture to using data and technology and encompasses your entire company.

Adding technology is just a piece of the puzzle

When technology changes the entire system, we’re talking about transformation. There are four aspects to digital transformation. They may vary depending on your industry.

• Process transformation

For example, tech solutions for faster data collection in the supply chain could result in better insights and more efficient warehouse management. In the end, bigger savings for the entire organization. This requires every department to transform their way of functioning and go beyond the operational level.

• Business model transformation

Your customers prefer having purchasing options. Before the transformation, you might had offered one or two offers. Having data at hand, you have spotted opportunities and allowed for more personalization in sales, marketing, and customer service.

• Domain transformation

New technology in your area might have allowed you to enter new markets. New markets require new expertise collection and adjustments.

• Cultural transformation

With all these changes, both granular and global ones, employees (from C-level to operatives) have to change their mindset. Instead of focusing all the energy on the production output, your company can invest more in customer relationships. This requires you to develop an agile mindset, where you produce more of what people need, and not with the goal of meeting the numbers.

Why should you embrace digital transformation?

First, consumers expect brands to provide them with personalized experiences. Whether they are shopping online, booking accommodation or hailing a cab through a ride-sharing app, customers weigh up their choices from a pool of offers that are hard to differentiate. Personalized communication, combined with great customer experience, is a key to win in this century.

Digitalisation has also changed the way businesses operate, such as by creating new IT systems and processes. 

For example, Business Intelligence (BI) data analytics allows business owners to look at what is really going on in their businesses and respond quickly using hard data rather than making potentially costly decisions based on hunches.

This makes it vital for companies to transform the way they do business to achieve success in this new environment in which consumers, as well as key operatives in your organization, expect consistent and seamless interactions. That can require anything from a complete overhaul of core systems to incorporating new technology into existing workflows.

Digital transformation not only makes your business easier and faster. It opens up new business opportunities for the company.

Digital transformation helps your company build new relationships with your customers. Through better relationships, we discover opportunities for serving the market with better solutions. 

Besides, over 90 percent of companies have considered digital transformation so far, so if you’re not making a strategy around this, you might not be keeping up.

Have you considered transforming your business with technology?

Contact us, schedule a call and let’s discuss the opportunities for your company!