Digital Transformation- Its Importance and How It Impacts Your Business
“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.”
~ George Westerman MIT Sloan Initiative on the Digital Economy
Keeping aside the Covid-19 chaos, the businesses around the world are either flourishing or are en route to pedestal of success. It is in these success stories, that the importance of digital transformations persists.
What is Digital Transformation?
When the digital technologies are integrated with various streams of business, it is called digital transformation. It fundamentally enhances and improves the operations and product or service delivery to the consumers. The past eras have witnessed an exemplar shift in how companies interact with technology. Whether it is small businesses or enterprises, the fact that competitiveness comes with digital advancement, cannot be denied.
The changes in the business sector have been faster than ever, given the tech-driven advancements. Digital transformation has been divided into different areas:
- Leadership Transformation – Fostering a digital transformation all through an enterprise is a must to balance in this competition consumed industry. This is possible only when digital DA transforms the leadership. It is ultimately about how an organization survives the recurrent changes and adapts to the governance and variations.
- Transformation of the omnichannel experience – The demand for convenience has increased rapidly along with the changing consumption habits. A customer’s experience can be enhanced only through its omnichannel customer experience platform. The traditional face-to-face customer onboarding can be eliminated with virtual customer support to assist and diversify the customers’ experience with bot chat, mobile apps etc.
- Information Transformation – This involves the data management with data integration across all the existing sources. It doesn’t only make the process of decision-making simpler and more informed but also enhances its impact.
- Operating model transformation – The digitally connected traders, people, assets and services make the business operations more effective and responsive. This ensures utmost levels of credibility, scalability on one hand, and managing costs, redundancy, and risks on the other simultaneously.
- Workforce Transformation- For leveraging the multiple cloud services and brokered services, work-source transformation is pivotal. It comprises of recognizing the IT talent and managing the skills as well as ensuring the sustenance of the desired competition level with the help of competence development programs.
Digital Transformation in Businesses over the Years
Businesses, big or small, have seen a major rise in software tools integration across various areas over the recent years. It would be tough to find an industry that has not tried enhancement with digital integration. Data collected through various research portals have shown some surprising results:
Digital Transformation Framework and Why it is Needed
The past year seems to have tested the patience and resilience of all the businesses to a great extent. With the rapid pace of unforeseen contractions, the companies need to keep up with that stride. This calls for a plan or a framework for technology integration and it can vary from business to business. The aim of a framework is primarily to strategically formalize the technological implementation.
Importance and Benefits of Digital Transformation in Business
By now we know that the digital transformation enables companies to work in different strategic ways to grow in the existing market and to be able to continue during challenging times. It is important for businesses because:
- Customers’ experience speaks volumes about an organization. With the integration of technologically sophisticated software, you can improve your consumers’ experience and handle their queries more efficiently.
- The metrics of the data captured can now be tracked with digital advancement, thereby giving you more data-based insights.
- With digital integration across different departments in a company, there is a realization of a common purpose which ensures an excellent collaboration between employees.
- With software implementation comes solutions to challenges and problems, and with solutions come a sense of innovation and improved agility.
Digitally integrating your business is in a way being in synch with the ever-changing times. After the Covid-19 disaster, out of 52 % of the companies which decided to cut down on investments for cost-cutting, only 9% made those cuts in the area of digital transformation. Contradictory to this, about 16 % of the executives believe that with the integration of advanced software and tools, they have seen significant growth in revenue, while 72% seem to have seen no such success in their efforts.
In the end, it all falls upon how the changes were implemented. Even though the over-stressing upon the efficiency of this concept is at one point turning out to be a bitter pill, yet, with rapidly changing customer expectations and recent challenging year, digital transformation has become vital to make an organization capable of adapting to the market pressure as well as the supply chain interruptions.