People often think digital transformation is about selling online or using technology to rebrand businesses. Digital transformation is not just the execution of additional technological structures. Neither is it rebranding existing business practices. Digital transformation focuses on changing how an organization provides data to its clients. It seeks to fast-track innovation and test out new ideas to expand the market or supplement what is obtainable.
What is Digital Transformation?
Digital transformation refers to the use of digital technology to transform the fundamental business operations of an organization. Digital transformation aims to create something entirely new. It transcends reproducing a service in a digital form rather aims to make that service substantially better than it was.
Because of this, it often involves an overhaul of company practices and ethos – taking into consideration all areas of an organization, revamping customer relations and executive decisions.
Digital transformation helps start-ups and businesses to create new business models. It is like a bridge which connects your data, workforce, and clients. Using technologies such as AI, Big Data, IoT and Cloud, the traditional ways of running processes are disrupted. These technologies produce concrete value such as:
- Enhanced productivity
- Innovative use of data
- Efficient customer experience and added value to customer interaction
- Restructured supply chain
- Data insights which can be used to usher in new products
- Increased product optimization
- Incorporated approach to cutting-edge technologies
- Improved operational proficiency
What Does It Entail?
Digital transformation is constantly evolving, therefore, it is important to build a sustainable strategy that does not become redundant in little time. Digital transformation is not enabled by one technology or application. It involves a series of technologies.
Before embarking on a digital transformation for your company, you must know the business outcomes you want for your clients. Customers have ever-changing needs and expectations. Understanding the outcomes you want for them helps in trying out developing technologies to meet your mandates.
Using these digital applications and hardware, an organization gains heightened interaction between its partners and increased customer value. These technologies include:
- Artificial intelligence/ machine learning
- Augmented reality and virtual reality
- Social media
- Internet of things (IoT)
- Information technology
- Cloud computing
- Data storage
All these technologies supply business with insight which is needed to make correct decisions regarding tactical areas of the organization. In most cases, a company may have to implement multiple technologies at the same time to obtain the desired result.
Why Does Digital Transformation Matter?
Whether your company is small and new or you large and established, it is important that your business is nimble and can compete in the fast-paced digital future. Conventional businesses are constantly being challenged and in most cases, overtaken by flexible businesses with a shrewd understanding of digital operations. Businesses which are unable to adapt face the threat of disruption. To remain relevant and be competitive, businesses must be willing to increase their level of digitalization. It is less about the hype and more about quantifiable results. Digitalization gives businesses an edge in the constantly evolving economic landscape.
It also helps businesses anticipate and keep up with client needs. Through digital transformation, organizations attain competitive advantage and achieve differentiation in their market segment.
Your business may need digital transformation if you experience one or more of the following:
- Your technology systems are outdated.
- Once effective promotions are no longer generating leads
- There is a significant drop in the number of repeat customers.
- The rate of your referrals is dwindling.
- Your business data isn’t accessible and integrated across departments.
Mapping out a strategy for your business requires industry expertise to avoid mistakes in your digital framework. At Consultare, we consult, implement, and support SAP Business One for clients with E-commerce stores, Marketplaces, CRM, Shipping and POS Systems.
Contact us to outline your digital strategy.