Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. This reimagining of business in the digital age is digital transformation.
While digital transformation is predominantly used in a business context, it also impacts other organizations such as governments, public sector agencies, and organizations which are involved in tackling societal challenges such as pollution and aging populations by leveraging one or more of these existing and emerging technologies. Digital Transformation is not just disruption of technology but it has more to do with helping solve business problems.
Faster deployment of the digital transformation strategy is affecting the levels of consumer behavior and expectations, economic realities and societal shifts in different verticals.
Two key indicators of Digital Transformation:
- Measure the revenue that contributes to each action against those of competitor.
- Add value to the client through technology, creating an easy shopping experience or controlling the whole supply chain.
Benefits of Digital Transformation:
- Digital transformation puts the customer at the center of everything: Thanks to WhatsApp, smartphone apps or pay-per-phone alternatives the shopping experience and the manufacturing processes can become even smoother.
- Real-time Data and Monitoring: The value of a specific supply chain, team, action or decision is no more guided by intuition, but by real-time data archived and organized by employees, who will create more connected, agile and goal-oriented teams.
- Meeting Customer Expectations: Customer expectations at all stages have become more achievable. Due to the online platforms, it is easier to access and convince targets, developing special actions or messages according to their emotions or step on the purchase funnel.
- Focussed Marketing Efforts: It optimizes and improves the relationship between brands and consumers, helps to make better marketing decisions based on target reactions and allows to have all the supply chain under control.
Future predictions about Digital Transformation:
- It will become the key strategic thrust for all CEOs: B2B industries will start to close the digital gap with their B2C peers as they too are confronting rapidly rising customer expectations.
- The initiatives will be consolidated into one vision and one function: Leading industries will make a concerted effort to integrate various digital initiatives across the business and create a clear digital vision that shows how the business will deliver revenue-generating digital experiences. The core activities are already underway and are making ripples across verticals.
- Digital Transformation will require new skills and a shift in IT investments: Access to talent and the ability to hire the right people at the right time and place will become a big competitive differentiator. Digital skills like mobile app development, analytics, and design thinking will become the new normal for software development.
- Big data analytics will serve as the foundation of digital transformation: Successful digital transformation will be based on establishing data streams in and out of the enterprise and finding new ways to monetize them. Data analytics will be embedded in all new apps, with a specific focus on automating actions based on real-time data analysis.
- The Internet of Things (IoT) will be a catalyst for the expansion of digital transformation to all corners of the economy: IoT devices and solutions have the potential to redefine competitive advantage in every type of economic activity and fundamentally alter how consumers interact with enterprises and how enterprises interact with their supply chain and distribution partners.
“When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.”