{"id":45597,"date":"2020-12-08T18:00:49","date_gmt":"2020-12-08T18:00:49","guid":{"rendered":"\/us\/en\/blog\/?p=45597"},"modified":"2024-06-24T22:38:36","modified_gmt":"2024-06-25T05:38:36","slug":"what-is-digital-transformation","status":"publish","type":"post","link":"\/us\/en\/blog\/what-is-digital-transformation\/","title":{"rendered":"What is digital transformation?"},"content":{"rendered":"

Put simply, <\/span>digital transformation<\/span> is the strategic integration of <\/span>digital technologies<\/span> across an organization. The principle idea is that these <\/span>emerging technologies<\/span> and <\/span>digital innovations<\/span> have the capacity to transform organizational culture and operations for the better.\u00a0<\/span><\/p>\n

Though primarily used in <\/span>digital business<\/span> environments, <\/span>digital transformation<\/span> has also proven useful within governmental and public sector agencies. Leveraging technology has the power to create value, boost services, and increase innovation.\u00a0<\/span><\/p>\n

The <\/span>digital transformation<\/span> process seeks all-around optimization across an entire organization. By tapping into <\/span>big data<\/span> and starting with a <\/span>clear roadmap<\/span><\/a>, <\/span>digital transformation<\/span> has the potential to heighten the way businesses deliver value to customers.<\/span><\/p>\n

According to Adobe and Econsultancy, in 2019, digital-first companies were <\/span>64% more likely <\/span><\/a>than their peers to exceed their top 2018 business goal. With stats like that, it\u2019s worth thinking about starting a <\/span>digital transformation<\/span> of your own.\u00a0<\/span><\/p>\n

The 4 main areas of digital transformation<\/strong><\/h2>\n

Digital transformation<\/span> is a multifaceted process. It doesn\u2019t stop with the integration of <\/span>digital technologies<\/span>. Information technology is just one part of the <\/span>digitalization<\/span> process. By approaching <\/span>digital transformation<\/span> with a four-pronged <\/span>business strategy<\/span>, your chances of achieving a streamlined, successful transition are much, much higher.\u00a0<\/span><\/p>\n

So, let\u2019s dive in with some top digital transformation strategies for 2020 and beyond.\u00a0<\/span><\/p>\n

Digital transformation strategies\u00a0<\/strong><\/h3>\n

There are four main areas that make up a high-quality <\/span>digital transformation<\/span> process. Everything from operations to company culture must be incorporated into your digital strategy. Don\u2019t be fooled into thinking your roadmap is all about tech. Digital infrastructure must be supported by a robust and secure company culture if you\u2019re to become a <\/span>digital leader<\/span>.\u00a0\u00a0<\/span><\/p>\n

1. Business process\u00a0<\/strong><\/h4>\n

Digital transformation<\/span> is all about improving operational agility. That means existing or <\/span>new<\/span> business models <\/span>need to be spot on. <\/span>Business processes<\/span> need to be streamlined. Business functions must be well-defined.\u00a0<\/span><\/p>\n

Everything from your go-to-market approach to your revenue streams informs your core business. A <\/span>digital transformation<\/span> will impact business functions all-round. That means marketing, operations, administration, customer service, and human resources.\u00a0<\/span><\/p>\n

The <\/span>business process<\/span> is key to the <\/span>digital transformation<\/span> process. Businesses need solid customer-facing and internal goals to get the most out of <\/span>digitalization. Business leaders <\/span>and <\/span>CIOs<\/span> must get across this at the outset of any <\/span>transformation initiatives<\/span>.\u00a0<\/span><\/p>\n

2. Business models and culture<\/strong><\/h4>\n

Technology is an enabler, but your business should remain people-centric. When embarking on a <\/span>digital transformation,<\/span> maintain a clear customer-oriented goal. Your company culture informs all <\/span>business process<\/span>es and activities, including IT.\u00a0\u00a0<\/span><\/p>\n

In fact, <\/span>digital transformation<\/span> should actually prioritize people and culture before technology. Your stakeholder behaviors and expectations are critical to a successful transformation.\u00a0<\/span><\/p>\n

According to Accenture, <\/span>76% of executives<\/span><\/a> agree that organizations need to reengineer technology and customer experiences to be more human-centric.\u00a0<\/span><\/p>\n

Relying solely on digital technologies as the solution to every organizational pitfall is a recipe for disaster. Technology should support, not define, company culture. No matter how proficient, the tech should not completely replace human-to-human interactions.\u00a0<\/span><\/p>\n

3. Workforce enablement<\/strong><\/h4>\n

Enabling your workforce during a <\/span>digital transformation<\/span> is crucial. According to Gartner, digital transformations move<\/span> t<\/span>w<\/span>ice as fas<\/span>t<\/span><\/a> when company leaders have a shared understanding of the projected digitalization plan.\u00a0<\/span><\/p>\n

A <\/span>digital transformation<\/span> is great for facilitating agile working, unified communications, and increased collaboration. But your <\/span>\\<\/span><\/a> needs to be well managed, fully trained, and ready to embrace these new ways of working. They\u2019re the core components of <\/span>digital change management<\/span>.\u00a0<\/span><\/p>\n

4. Integrated technologies and artificial intelligence<\/strong><\/h4>\n

Last but not least, of course, technology is central to any <\/span>digital transformation<\/span> process. By mobilizing data, data analytics, and integrated technologies, businesses can expect to notice a profound and holistic transformation across their operations.\u00a0<\/span><\/p>\n

A good<\/span> digital transformation strategy<\/span> will leverage technologies to improve <\/span>business process<\/span>es, communications, and outcomes. With so many technologies available, having a well-thought-out roadmap is integral to a successful integration.\u00a0<\/span><\/p>\n

Popular options for businesses going through a <\/span>digital transformation<\/span> include:<\/span><\/p>\n

Cloud computing<\/b><\/p>\n

Cloud computing functions through three pillars (<\/span>SaaS, PaaS, and IaaS<\/span><\/a>). The cloud supports a vast range of IT services to support a fully fledged <\/span>digital transformation<\/span>.\u00a0<\/span><\/p>\n

Big data<\/b><\/p>\n

Using big data mobilizes a significantly larger volume of structured, semistructured, and unstructured business data. This can then be applied to machine learning projects, advanced analytics, and predictive modeling.\u00a0<\/span><\/p>\n

Machine learning<\/b>\u00a0<\/span><\/p>\n

Machine learning provides computer systems with the functions to learn and improve from experience organically. In other words, computer systems do not have to be programmed specifically but access data and use it independently.\u00a0<\/span><\/p>\n

Advanced analytics<\/b><\/p>\n

Advanced analytics gets more out of your data by predicting and forecasting trends.<\/span><\/p>\n

Artificial intelligence<\/b><\/p>\n

AI allows businesses to drive their processes at a much larger scale. It is also an effective way to make precise and informed business decisions. Artificial intelligence is therefore an integral part of any digital transformation process.\u00a0<\/span><\/p>\n

Mobile apps<\/b><\/p>\n

Mobile apps can help advance the digital transformation process. They help to make informed decisions with real-time analytics. They are also an effective way to collect user data and deploy effective, personalized marketing communications accordingly.\u00a0<\/span><\/p>\n

The Internet of Things (IoT)<\/b><\/p>\n

Using an <\/span>IoT<\/span><\/a> platform helps companies of all sizes transform themselves into digital companies. These platforms facilitate the digitalization of physical products. Take the household name Michelin, for example. Michelin has used IoT to<\/span> investigate its supply chain<\/span><\/a> in real-time and improve customer satisfaction.\u00a0<\/span><\/p>\n

Edge computing<\/b>\u00a0<\/span><\/p>\n

Edge computing<\/span><\/a> technology makes business more efficient and therefore more profitable. As systems have started generating more data, decentralized decision making has become the norm.\u00a0<\/span><\/p>\n

Robotic process automation (RPA)<\/b><\/p>\n

Optimized robotic process automation can be super useful for transformation processes. RPA offers an efficient and simple way to streamline critical business processes and has the potential to extend the life of any existing legacy systems.\u00a0<\/span><\/p>\n

Why is digital transformation needed?<\/strong><\/h2>\n

Digital technologies are the new normal\u00a0<\/span><\/h3>\n

We live in a <\/span>digital age.<\/span> For any business to remain competitive today,<\/span> digital transformation<\/span> is not just useful. It\u2019s essential.\u00a0<\/span><\/p>\n

Businesses that do not keep up with other tech-savvy competitors are under threat from major disruption. Despite this, <\/span>7% of executives <\/span><\/a>say they\u2019re not concerned about the threat. Developing trends would suggest that this 7% is being a bit too optimistic.\u00a0\u00a0<\/span><\/p>\n

By failing to take <\/span>digital transformation<\/span> seriously, executives are putting their businesses at risk. Big companies like Amazon, Microsoft, and Facebook are massively mobilizing technology. As a result, all businesses today need to consider <\/span>digital transformation efforts<\/span> of their own.\u00a0<\/span><\/p>\n

The strategic deployment of integrated technologies boasts impressive results. Integrated technologies can open up a lot of opportunities for growth. Some benefits include:<\/span><\/p>\n