Digital Transformation – What it is and why it matters?
Digital transformation is crucial for all businesses (whether small or big). It can help businesses to remain competitive and relevant. However, many business leaders do not know about the term “Digital Transformation”. Even if they know, they do not know the importance of digital transformation for their business. In this blog, you will understand what is digital transformation and how it matters for any business.
What is Digital Transformation?
Digital Transformation is a process of improving or renovating existing processes using digital tools and technologies. It replaces or strengthens antiquated, slow, and tedious manual processes with easier, and more efficient automated processes.
“In general terms, Digital Transformation means changing or improving the way businesses operate and deliver value to customers by integrating digital technology.”
Digital transformation also refers to a change in the business culture. It is not a simple process and requires a commitment to make it work. Moreover, it requires to make significant changes in long-used legacy systems that need a lot of time, money, and human capital.
Digital transformation varies based on an organization’s specific challenges and requirements. While beginning with digital transformation, the business and technology leaders must consider a few constants and common themes among existing case studies and published frameworks. These elements are often cited as customer experience, culture and leadership, operational agility, workforce enablement, and digital technology integration. However, the leaders look for those important shared themes while planning their own digital transformation strategy.
Why does Digital Transformation matter?
The reasons why digital transformation matters to any business are as follows:
- Enhanced Efficiency
- Improved Customer Experience
- Increased Profits
- Keeping pace with the competition
Let’s discuss all the four reasons one by one.
Digital Transformation makes workflows and processes faster, easier, and more efficient. For instance, digital workflows enable automatic and seamless movement of documents to the desired person. It helps employees save their hours of processing paperwork and focus more on core business activities. Digital transformation allows you to create more efficient processes and systems that make the key projects and tasks move forward at a faster rate.
Improved Customer Experience
Implementation of digital transformation enables you to remove points of friction experienced by your customers. For instance, new clients or customers require to fill various onboarding documents. If you automate this process and digitize it, a significant burden will be removed from clients/customers. This increases customer loyalty and customer lifetime value.
Digital improvements lead to an increase in revenues. Increasing revenues or profits is the fundamental goal of all businesses, which is why you must move forward with the digital transformation.
Keeping Pace with the Competition
Today, every other business is implementing digital transformation. Therefore, it is necessary to use digital transformation not only for increasing profits but also for keeping up with the growing competition. You need to build a competitive strategy to keep up with your competition.
Digital Transformation Trends in 2020
Let’s have a look at the top 8 digital transformation trends for 2020 that the business leaders must be aware of:
- Adoption of digital operating models that include integrated cross-functional teams with due consideration for Social Distancing and ensuring safety of the workforce
- Better use of Artificial Intelligence (AI) and Machine Learning (ML)
- New metrics for digital transformation
- Expanding public cloud adoption
- More attention to long term value of digital initiatives
- Consultancies establishing new digital partnerships
- Continued merger and acquisition activities in the IT outsourcing industry
- Companies invested in big data governance and analytics leapfrog their competitors
Technology is volatile, and your competitors are moving at a rapid pace. You do not just have to keep up, but you must not lag. Creating a digital transformation is not an easy process, but it is a necessity that is worthwhile. With this transformation, you will witness increased efficiency, customer satisfaction, and revenues.