What is digital transformation

Digital transformation

Is the process an organization uses to bring digital technologies to all areas of its business, fundamentally changing the way it delivers value to customers. Companies are adopting innovative digital technologies to drive cultural and operational changes that better adapt to changing customer requirements.

Examples of digital transformation:

  • Companies are starting to create digital solutions, such as mobile applications or an e-commerce platform.
  • Companies are moving from on-premises computing infrastructure to cloud computing.
  • In addition, they are implementing smart sensors to reduce operating costs.

Why is digital transformation important?

The term “digital transformation” describes the introduction of new technologies, resources and processes to remain competitive in an ever-changing technology landscape. In the post-pandemic era, an organization must be able to quickly adapt to these changes:

  • accelerate the time to market for a product;
  • sudden disruptions in the supply chain;
  • rapidly changing customer expectations.

Companies must adopt digital transformation strategies if they want to continue to lead their market. Listed below are some of the benefits of digital transformation initiatives.

Productivity increase

New technologies, such as cloud services, save time and improve the efficiency of all types of business processes. For example, the introduction of digital technology such as artificial intelligence gives employees the opportunity to focus on tasks that require creativity and problem solving. Likewise, machine learning-assisted data analysis will enable you to make productive inferences to achieve your business goals faster.

Improvement of interaction with clients

In the post-pandemic era, customers expect services to always be available through multiple channels. They also need websites and communication systems that are easy and convenient to use on mobile devices. The following are some of the digital transformations that directly affect the customer experience.

  • Development of mobile applications and mobile workflows
  • Faster tracking and order fulfillment with smart sensor technology
  • Real-time customer interaction with artificial intelligence
  • Improving customer support and service with automation
  • Reduced operating costs

Investments in digital technology can streamline existing business processes.

And significantly reduce the ongoing operating costs listed below.

  • Equipment service
  • Logistics and delivery
  • Energy costs
  • Human resource costs
  • User support costs

Typically, you will be able to reduce costs because digital transformation will help you accomplish the following tasks.

Eliminate or replace specific resource-intensive workflows.Reduce the cost of expensive infrastructure and hardware with managed services and cloud computing.Automate tasks with a combination of smart sensors, smart devices, and machine learning.
What is the difference between digitization and digital transformation?
Digitization is the process of transforming the physical aspects of your work and business processes into digital ones. Representing non-digital or physical things in a digital format means that the computer system can use that information. For example, paper forms that customers fill out are converted to digital forms that they fill out online. The digital data can then be used for analysis and business intelligence. In business, digitization initiatives may include the following projects.

Modernization of legacy systems

Automation of existing paper or manual processes
Transferring the system to the Internet

However, digitization itself is not a transformation. This is just an important first step on the road to digital transformation. Digital transformation has a much broader scope that can completely change the culture of an organization.