Digital transformation is not a new concept, but the Covid-19 outbreak has pushed companies to reshape their business models, with some launching their digital initiatives quickly. At some point, skeptics considered digital transformation a fad, but it is now vital in every industry with the latest development. Digital transformation has been ongoing in the business world for decades, from PCs to minicomputers, the Internet, cloud services, and mobile and the latest technology of AI-driven computing.
New technologies have been causing disruptions to established practices and introducing innovative technologies and more advanced solutions to replace traditional business methods over the years. Technology advancements push companies to evolve and transform themselves to thrive and survive in the new environment. The speed and scale at which digital transformation demand has grown after the pandemic was unprecedented, which means that it will leave permanent change in all industries.
What is Digital Transformation?
In the last few years, a digital revolution has offered unique opportunities to companies that are ready to adapt to the emerging industry standards and serious challenges to traditional businesses. The ongoing revolution has accelerated after the Covid-19 outbreak pandemic, but we are likely to see further acceleration after lifting restrictions and reducing lockdown measures.
Digital transformation means different things for different industries and businesses. Consequently, many organizations and industries are either planning to undergo digital transformation, are in the middle of the processor are trying hard to adopt the very concept. The real digital transformation should involve the reinvention of most areas within an organization, if not all. It may require a reinvention of its apps, tools, workforce and supply chain, employee skillset, or the organization’s customer engagement.
Therefore, digital transformation is the change of business by adopting the latest digital technologies and revamping how it conducts its activities to help enhance the business process. In simple terms, it involves integrating digital technology into all the departments of a business, transforming how businesses run in the modern world, and provide value to stakeholders and customers.
Why is Digital Transformation Essential for Business Growth Today?
In the modern world, there is an ongoing revolution requiring businesses to adapt to the latest technologies and emerging trends in the digital era. With the acceleration of the revolution after the Covid-19 outbreak, businesses will have to adapt to match the emerging market conditions or get faced out by innovative companies or the new entrants that have to endorse digital transformation. There are several reasons businesses should adopt digital transformation, but the major one is able to survive in the modern world.
Companies that fail to undergo digital transformation will fail to meet the emerging customer expectations, which will cause them to be replaced by innovative companies or new businesses in the industry. Therefore, organizations have to quickly undergo digital transformation to meet society’s needs due to the rapid digitalization of every aspect of life. Here are some of the statistics that prove the importance of organizations undergoing a digital transformation:
- House IDC put the value of digital transformation at $18 trillion in additional business value
- Gartner CIO predicted that digital business would represent 36% of the total revenue by 2020, something that has come to pass has been an acceleration of digital transformation.
- Executive chairman of Cisco Systems, John Chambers, predicted that 40% of all businesses would face extinction if they fail to adopt new ways to accommodate new technologies in the next 10 years.
- According to Gartner’s IT Market Clocks for 2016, 66% of companies undergoing digital transformation will generate more revenue from their operations, while 48% of people predict more business will come through digital channels.
What are the Benefits of Digital Transformation?
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Enhanced Customer Experience
Technology advancements have led to the emergence of great innovations, including big data, cloud computing, connected devices, smartphones, and other artificial intelligence-based innovations. The AI-based innovations have drastically enhanced the lives of your customers.
Digital transformation allows customers access to a large amount of information that enables them to make informed decisions while checking the quality and kind of services and products they intend to acquire from the business.
Besides, digital technology has made one-day delivery possible, something that excites every customer in the current era of instant gratification and one that was unimaginable a decade ago. With the digitalization of workplaces, you can access troubleshooting guides, company information, FAQs, and how-to-manuals in one place through a cloud service or a document management system.
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Offers a Competitive Edge
According to Gartner’s survey, 56% of the businesses confessed that their profits had improved due to their digital improvements.
Companies that are rapidly undergoing digital transformation have a competitive edge over those who choose to stick to traditional business ways.
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Increased Efficiency
According to TechTIQ Solutions, technology advancements have brought new strategies, procedures, and processes that make businesses and organizations more efficient and productive. A study has shown that work overload reduces productivity by sixty-eight percent in employees. Still, digital transformation helps increase productivity by eliminating time spent searching information, commuting, and getting rid of other administrative tasks that can be quickly handled by technology.
How to Implement Digital Transformation in your Workplace
Do you leverage the power of digital transformation in your business in the modern world? Here we look at steps to follow when implementing digital transformation successfully.
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Prepare Everyone in the Organization.
The first step is acknowledging that there is an issue in the organization. Leaders and the upper management should discuss the current system’s challenges and disadvantages and why digital transformation is essential for business growth. Discuss the impact and implications of digital transformation to ensure that there is smooth implementation.
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Determine the Target Areas
The next step in digital transformation is identifying areas within the organization that require reinvention to meet the digital needs. Engaging in a complete transformation would overwhelm your employees, which could lead to failed implementation.
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Identify all the Key Technologies.
The third step should involve mapping out the new technology that you would like to add to your workplace based on the process that you intend to optimize. Regardless of the number of new technologies you map out, you should avoid making the mistake of implementing all of them at once. Instead, focus on technologies that align with your business objectives and goals and implement them.
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Prepare a Strategy for Implementation.
After mapping out the technologies you need, you need to lay out a defined road map to implement them effectively. To ensure a steady transformation process and mitigate risks, you should carry out such implementations in phases to allow employees to understand the process as you transform.
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Determine the Effectiveness of Your Plan
After getting your strategy for implementation ready, you should set up some performance indicators to measure your plan’s success.
Putting key performance indicators (KPIs) that indicate a real change in your workplace enables you to drive real change. The best way to achieve this is to set up smart goals that ensure the transformation process is measurable and transparent. Determining the effectiveness of your plan will guide you in your decision making in the future.
Is Digital Transformation Important for all Companies?
Many companies embrace transformation to stay competitive and survive in the fast-changing markets. However, there is a great difference between transformation and modernization and improvements. So, do all companies need digital transformation?
Well, not all companies need to transform. Some small businesses can exist without undergoing full digitalization. Likewise, many businesses expand and benefit from adopting new technologies.
However, there is no direct answer if your transformation is important for your business. This is something that the management or the business leaders have to decide. The most important thing to consider in this case is whether the business or organization is future-proof.
What are the Challenges to Digital Transformation?
- Many people do not like change. Usually, people are comfortable with maintaining the current way of doing business, which makes implementing a full transformation a great challenge.
- Typically, many organizations have to contend with legacy systems that hinder change and advancement. According to research, 9 out of 10 IT leaders confess that legacy systems prevent them from implementing digital technologies that their organizations would need to be more efficient or grow.
- Many organizations face challenges in finding reliable personnel to strategically drive full change while ensuring that they fall into the right path to success.
- Many businesses are unwilling or unable to set money aside to fund digital transformation.
Conclusion
In conclusion, digital transformation is essential for business growth and survival. Transformation ensures that organizations are up-to-date with the emerging trends in order to meet customers’ expectations.
As more and more companies plan or engage in undergoing a transformation to be future-proof or meet digital needs, there is a lot that companies need to know to achieve a successful digital transformation in 2021. We believe that our ultimate guide will help companies implement transformation effectively to be on the correct path to success.
However, if you would like to have a partner to take your organization through its digital transformation journey, TechTIQ Solutions is worth your consideration. The tech company has a team of passionate and committed IT experts with a deep understanding of digital transformation, including its impact, effects, and challenges. TechTIQ Solutions focuses on bringing cost-effective and impactful digital solutions that allow businesses to grow and better engage their customers in this digital era.
Download Inovar Tech’s latest white paper on Digital Transformation strategies for a competitive edge. Explore the ways it is revolutionizing industries and driving innovation. Free Case Study for Digital Transformation and Security (inovar-tech.com).
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