Every keynote address, panel discussion, study or article related to how business can increase their efficiency or remain competitive and relevant in today’s world reiterates the same idea – digital transformation. However, it’s not clear to many business owners and leaders what digital transformation really means. Is it just another fuzzy tech word meaning moving to the cloud? How do you go about digital transformation? Do you need to design new job roles or hire a consulting agency? Is it really worth it? These are some of the many questions you might be having about digital transformation. This post attempts to answer them:
What is Digital Transformation?
Digital transformation looks different in every organisation. Therefore, it is hard to pinpoint a clear definition that applies to all cases. However, in general terms, digital transformation can be defined as the holistic integration of digital technology into all aspects of a business with the aim of achieving fundamental changes in the manner in which businesses operate and deliver value to their customers. But, it is much more than just technology. It is also a cultural change that requires businesses to actively and persistently challenge the status quo, experiment often and to embrace the chance of failure. Understandably this is a new way of thinking that requires businesses to walk away from long-standing business processes and to embrace new practices that are still being defined.
There is a plethora of definitions and articles on digital transformation all taking a slightly different view. It is no surprise therefore that most business leaders and owners don’t know how to feel about digital transformation. After all it is just a hot mess. Or is it?
Why Does Digital Transformation Matter?
Businesses embark on digital transformation for different reasons. However, the most prevalent reason is survival. Moving forward, businesses that will survive and thrive are those that act fast, adapt quickly or chart new paths. Speed and agility are now business imperatives for organisations of all sizes.
What are the Benefits of Digital Transformation to a Business?
Although digital transformation is risky and expensive, the resulting benefits outweigh the challenges. Some of these benefits include:
Delivers a Better Customer Experience
Technological advancements have broadened the ways in which businesses interact with their customers. This allows businesses to provide a better and consistent customer experience. Speed is an important factor in creating satisfactory customer experience and digital transformation gives business the ability to serve its customers quickly.
Improves the Skill Set of Employees
The adoption of new technologies will require employees to update their skills to meet the changing environment. As the employee’s skills and knowledge increase, your company will achieve better communication between departments while also becoming more agile. On top of that, the quality of work will improve.
Promotes a Digital Culture
Having a digital culture and environment enhances productivity and allows employees to quickly and easily adapt to any technological change within the company. It helps them explore their creative side and promotes innovations through a process of continual learning.
Improves Data Collection and Analysis
With all the available data analytics tools and the ability to collect extensive data online, businesses can now easily, collect, monitor and analyse customers data to aid informed decision making. Businesses can now study and predict the online habits of their customers and further enhances their business strategies.
Enables the Digitisation of Products and Services
Customers want to have things done quickly and the company that has quick processes will naturally have more companies. Digital transformation allows businesses to convert tangible goods into digital goods thereby meeting the needs of their customers in a shorter time.
When successfully implemented, digital transformation positively affects all areas of business. By improving customer experience and shortening delivery times, businesses earn the trust and loyalty of customers which increases revenue. This general improvements also opens new markets and sales channels leading to more profitability.
Maintaining a Competitive Edge
Businesses should always aspire to have an advantage over their competitors. This is the only way to remain in business. Digital transformation presents a firm foundation from which new ideas and opportunities can be integrated into the business. This not only makes the business competitive in the present, but also highly adaptable and agile in the future.
Digital transformation is your ticket to the future growth and success of your business. While digital transformation might be a challenge for most companies in the short term, the long-term benefits outweigh all challenges. If you are a small or medium business owner, digital transformation may just be the revolutionary strategy you need to break into the big league.
Contact AdEPT today to learn more about how digital transformation can help your business grow into the future. We have a dedicated team of IT professionals waiting to guide you step by step towards digital transformation.