Digital transformation in business – what it is and how it impacts businesses

August 10, 2021

iauro Team

Contributing immensely to the global software solutions ecosystem. DevOps | Microservices | Microfrontend | DesignThinking LinkedIn

Is digital transformation a new phenomenon?

Have you ever thought about using technology to change existing or create new business processes? Thinking of customer experiences to meet changing business and market demands? This business transformation in the digital age is known as digital transformation. A digital transformation strategy is about bringing together digital technologies across all industries, changing the way they are used and delivered to customers.

A company needs to frequently question social or political issues, experiment, and get used to failure. With digital transformation, organizations can transform tangible goods into digital goods according to the requirements of their customers. In this blog, we’ll cover all aspects of a digital transformation strategy.

Business needs digital transformation, but why is it important?

Digital transformation is essential for any business. Digital transformation starts and ends with how you think about customers and how to interact with them. Since our paper has been replaced by Excel sheets for business management, we must now seize the chance to change the way we do business and how we interact with customers digitally. We cannot find one definition that applies to all. It integrates digital technology into business, leading to changes in the way companies operate and deliver value to customers. There are real-world examples that illustrate the implications of planning a digital transformation strategy at the business level and developing an orderly strategy to avoid panic and chaos in your organization. Below are some of the best benefits of digital transformation for business:

1. An increase in investment returns.

Digital tools and technologies have already had a huge impact on the global economy, especially since the introduction of digital transformation in retail

2. Improving financial performance

Companies adopting technology solutions especially experienced a 39% increase in revenues and a 21% reduction in time to market.

3. Increasing the productivity of employees.

Employees become more efficient, take very little time to make decisions, and are happier.

4. Improving the quality of customer service.

When businesses are aware of the challenges customers are facing, they plan better for customer interactions. Digital transformation helps improve customer experience and improve long-term relationships. In short, it is the integration information using computers and mobile technologies into the company’s overall business strategy. The integration of these technologies provides an effective platform strategy for employees and, ultimately, contributes to the development of the organization and its credibility in the market.

A framework for digital transformation:

The integral components of a digital transformation strategy are listed below:

  • Personnel and customer relations
  • Attracting labor force
  • Integration of digital technologies
  • Experience working with clients
  • Data and analytics
  • Digital business strategy and culture
  • Process and innovation
Digital transformation: What’s really driving it? Technology is an important part of digital transformation. But in technology, it is necessary to abandon outdated processes and adapt to the latest technology. The federal IT dashboard shows that in fiscal 2021, more than 70 percent of government IT spending went to the operation and maintenance of legacy systems.
 

Skill Areas Needed for Digital Transformation

The following are the main skill areas required for digital transformation in an organization.

1. Big data analytics

Big data analytics helps companies make adjustments that minimize costs and maximize results. You need to know what customers and employees are doing and how you can think about what they will do in the future and start making changes to suit their needs.

2. Machine learning

Machine learning is part of artificial intelligence (AI) that helps systems learn and improve based on experience without explicit programming. His main job is to develop computer programs that can use data for self-study.

3. Change management

Change management is an approach to transforming the goals or technologies of an organization. The main use of change management is to implement implementation and change management strategies to adapt to change.

4. Cloud computing

Cloud computing and digital transformation work together. The availability of high-bandwidth networks, low-cost computers, and storage devices has led to the growth of cloud computing.

5. Digital security

As companies move closer to digital transformation, they must make safety a priority. Organizations need to maintain the privacy and availability of data locally in the cloud.

Advantages of digital transformation

Almost today, companies are transitioning to digitalization thanks to their profits. The development of computer and mobile technologies has made it mandatory for businesses to move to digital technologies after the implementation of application architecture to ensure digital transformation.

1 Customer Experience
As a result, advances in technology are helping companies to participate more effectively and consistently in meeting customer needs. Advances in technology have expanded the way companies communicate with their customers.

2 Empowerment of employees
As companies continue to adopt new technologies, employees will need to update their skills to meet the changing technology environment, expanding their opportunities in the marketplace.

3 Optimization of business operations
The main business benefit of digital transformation is the collection and analysis of data online. It helps improve business strategies by examining consumers’ online habits. This helps in good and efficient resource management.

4 Profit
Your digital transformation strategy will, in many cases, positively impact other characteristics of your business. If the implementation of the process is successful, the chances of increasing income are very high.

4 Competition
Competition is what keeps a company strong. With the prevailing world of digitalization and the continuous transformation of the business environment, competition will continue to grow. Thus, by transforming your company into a digital business and developing digital culture, you can increase agility and innovation within the company, leading to digital products and services. Ultimately, this opens the door to globalization. And it will have a positive effect on everything related to your business.
 

Challenges for successful digital transformation

Digital transformation is a buzzword that has been around for a while. However, a global survey of 196 organizations conducted by Gartner, Inc in 2018 found that 91% of organizations have yet to reach transformative levels of maturity in data and analytics, despite being their number one investment priority in recent years. for CIOs. So, what challenges does an organization face in adopting a digital transformation strategy?

1. Organizational resistance to change

The changes are abrupt; it is a human tendency to resist change. But we need to learn from history that change is the only constant. Kodak did not adapt over time, and even though they invented the digital camera, internal resistance to change led to the collapse of the company.

Solution:Organizations looking to move forward with digital business transformation need to create a management-driven environment, such as enforcement, and a clear strategy to execute and manage the transition. Employees need to understand that a digital transformation strategy is about improving all elements of their workflows.

2. Taking care of IT resources

An organization can choose a strategy and everything else, but without resources, nothing is possible. Resources include finance, infrastructure, and, not least, the digital workforce.

Solution: A digital transformation roadmap should include resource planning that evaluates finance and IT resources. Then the human resources should be prepared to find the right talent. And all other departments are involved in bridging the digital skills gap.

3. Keep up, be flexible

Business digital transformation is not a one-off event. An organization needs to continue to innovate and keep pace with market changes in order to serve its customers well. A digital transformation strategy must include a corporate agility plan.

Solution: agility needs to be developed from scratch; microservices, open APIs, automated delivery of continuous delivery apps, continuous integration, and agile teams are some of the options that help increase agility.
 

Are you looking for a digital transformation consultant?

A digital transformation consultant improves a company’s specifications. They do this by analyzing the company’s infrastructure and finding service gaps. Their focus remains on achieving long-term strategic goals, not just working on short-term goals. They can work for a company or work as contractors. Some companies choose to hire full-time employees as in-house digital transformation consultants.

Digital transformation consulting helps businesses through technological innovation, be it marketing, online shopping, changing operating models, or changing business impact.

Digital transformation consultants create multiple departments within a company and can work with customer support staff, product managers, technical staff, and marketing staff. To get approval for their recommendations, they need to develop a relationship with management. People who don’t work as full-time consultants can educate clients on the best products for their budget and needs and sell them
Digital transformation works for businesses because their leaders are driving change and getting back to basics. Leaders focus on the mindset of their employees and instill change in their organizational culture. Leaders did not make decisions about digital tools and how to use them; First, they bring cultural change, and second, technology. An organization’s vision drives technology, not the other way around. Digital transformation can mean different things depending on the organization or industry. Each industry has specific requirements for its digital transformation strategy.

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