Digital transformation is the concept of businesses using technology to change the way their employees, customers, and processes operate in order to improve the performance of the business. This usually happens in response to a changing environment and changing market needs. Industries are being transformed by this large-scaled effort. Automation and artificial intelligence are key components of digital transformation to complete tasks quickly.
Traditional manual processes lack efficiency and can slowdown a business. Digitizing a business means leaving paperwork behind and creating smarter processes supported by technology. As software, IT infrastructure and other developments have occurred, this has changed the ways in which businesses operate every day. With the introduction of computer systems and data collection, many companies have shifted to digitization to reap the benefits of a more efficient path to innovation.
We're in the digital era but unless businesses stay committed to keeping up with technology, they will struggle to stay competitive. Thinking digitally through strategy implementation is the best way to future-proof your business.
What is the purpose of digital transformation?
Businesses often use digital transformation to compete against new businesses who are disrupting the same space. As customers' needs and expectations shift, businesses must embrace the digital world to survive in the current economy. If they don’t, they will get left behind. By implementing more of these strategies in your business, you give your business a competitive advantage above those who aren’t being as progressive. This is the force that is going to move your business forward.
The potential of digital transformation in your organization relies on the potential of innovation. As these advancements occur, the sky is the limit for how they can affect and make positive changes to businesses worldwide.
Yet, having your employees adopt new technology can be challenging. An emphasis will be on the training and adoption of these processes. For smaller companies this change may happen rapidly, however it may take years for larger companies to implement these changes to every faucet of their business.
How to make your organization embrace digital transformation
Start by conducting a gap analysis. Where does your company fall short in terms of digitization? Where could you invest more? In the coming years, what will your industry be moving towards? To transform your business, you need to start by understanding the current state of digital in your business.
From there you must get buy-in from board members and executives. Share your vision for how you believe the tech will transform the way your business operates, leading to better business outcomes. It can be a costly process to fully transform your business since innovation is twofold. You must purchase the technology and then help your staff adopt it.
The best way to get buy-in for this costly investment is by aligning the digital transformation with your business’ strategy. There may be challenges when trying to implement these new solutions. However, utilize the data collected to measure, iterate and improve. It’s worth taking risks and learning from mistakes versus waiting, since technology will surely pass you by. The world of tech moves fast; delaying this transformation may put you further behind your competition who is likely innovating as well.
By creating a culture of innovation and technology, these aspects will seamlessly become part of your business. Your leadership team will maintain technology as a priority and continue to make decisions in the best interest of your digital agenda. Ultimately, consumers will see your business as one that isn’t afraid to try new things and is always pushing the envelope – this can be an exciting Value Proposition.
What are the benefits of digital transformation?
Digital transformation can provide impactful benefits for businesses including:
Increased mobility
As the world embraces remote working options, companies need to consider digital transformation. How can they support this growing need or desire to work from any location? Some workers require remote working to get the job done whether on site with clients or in other locations.
Employee experience
Digital transformation isn’t solely about making the customer experience better. It’s also about improving the lives of your employees. The modern workplace is a place that enables workers with the right technology.
Research shows that employees want to use cutting edge technology to keep pace with their workload. Your company can improve the retention of employees by giving them technology tools that help make their jobs easier and their work lives more fulfilling. These tools can also help to increase employee productivity and can even translate into a better customer experience.
Enhanced customer experience
As a result of digital technology, consumer behavior is changing. Therefore, progressive companies are using technology to shift how they interact with their customers. Social media and other online experiences can help customers find businesses and brands to further engage with them. While customer service continues to operate through emails and call centers, social media now offers another way for customers to interact with the brand.
What is an example of digital transformation?
1) Uber and Lyft have transformed the transportation industry and have caused public transportation and taxi services to rethink the way they operate in order to compete with the gig-economy ride-sharing program.
2) In the financial services world, self-service is becoming more common. Whether it's via online banking or with ABM machines, artificial intelligence is allowing customers to complete banking without interacting with customer service representatives in person.
Get in touch with our team to discover how we can help your company with its digital transformation initiatives and give it the competitive edge you’re looking for.