TABLE OF CONTENTS:
- What is digital transformation?
- Digital Transformation Process
- Digital Transformation Strategy Framework
- Why Do I Need Businesses Digitalization?
- Benefits of Digitalization
- What Are Types of Business Digitalization
Advances in digitalization help companies market products faster and reach their desired customers.
Business digitalization changes the way companies function and communicate with customers.
One of the biggest examples is physical stores that have expanded to the internet by creating online eCommerce stores.
Since the start of the pandemic, there have been drastic shifts in demand. For one, there is the demand of customers for online shopping, while on the other hand working from home has become far more popular.
This has forced companies to become digital sooner and faster.
5.35 billion people in the world are internet users as of January 2024. (Statista)
What is digital transformation?
Digital transformation is the process of integrating digital technology across all aspects of an organization, fundamentally changing how it operates and what it offers.
It involves integrating technologies like AI, IoT, and data analytics to optimize processes, improving customer experiences, and promote innovation.
DDigital Transformation Process
In today's fast-paced technological era, businesses must adapt quickly to remain competitive and relevant in their industries.
Creating and implementing a robust digital transformation process can make technology work for you and help you grow your business.
Digital Transformation Strategy Framework
Define clear goals.
First, identify specific goals you want to achieve with the digital transformation.
Assess.
Assess the existing infrastructures, processes, and systems. This will help create a better strategy, saving time and resources in the future.
Define a timeline.
After setting everything in place, consult with your IT department or your digitalization agency and set up a digital transformation roadmap.
Focus on real needs.
Among all the various tools and software available, make sure to choose the right digital solution that focuses on your needs.
Employee readiness.
There is no use in fancy new tools if no one knows how to use them. Organize additional training if needed.
Why Do I Need Businesses Digitalization?
Digital business transformation is a long-term and sometimes expensive undertaking providing results after a longer period.
So, why should companies invest in digitization?
Today, anyone can start a business and many do. The competition is strong and agile.
Digital transformation can ensure company survival and help achieve sustainable growth in an ever-growing world of global business.
Benefits of Digitalization
Digitalization is no longer a novelty or a fad, it has become a necessity.
Save time and money
Storing all documents and data digitally can significantly reduce material and operational cost.
An added benefit is accurate data processing that lessens the risk of human error, which in turn saves time and money that is wasted on corrections.
Improve efficiency
Automation improves business efficiency by eliminating or streamlining repetitive tasks, eliminating error, and improving productivity.
For example, using cloud-based solutions allows employees to access business data and easily collaborate no matter where they are.
Better customer experience
Online payments, simplified and faster order processing, or automatic online scheduling – they all help provide a better customer experience.
The average cost of processing digital payments, taking in account expenses and labor cost, is 57% less than non-digital payments. (E Consult Solutions)
Business without borders
One of the biggest advantages of online business is easy collaboration of teams, no matter where they live or work.
Plus, going digital gives you a better access to customers all over the world, without the need to open overseas offices.
What Are Types of Business Digitalization
Today we differentiate several types of digital business transformations.
Process transformation
Process transformation is about making work processes simpler and more efficient, aiming to cut down on time, costs, and mistakes by rethinking how things are currently done.
While adding new technology might seem like a good move, it's important to think about how long it will take, how it will affect people inside and outside the company, and if there are simpler solutions already available.
Business model transformation
Business model transformation is a big change where a company updates how it sells or delivers its products or services by using digital technology, often to capture new opportunities or keep up with competition.
It is key not to rush with such changes, asses if new skills are needed, and hire or educate appropriately.
A company can identify which processes are causing them to lose time and money, then create a digital solution to optimize them.
Customer experience transformation
Customer experience transformation uses digital technologies to improve customer interactions across various touchpoints. It encompasses strategies such as omni-channel engagement, personalization, self-service options, and simple processes.
With continuous optimization of customer digital experiences businesses can meet expectations, build loyalty, and gain a competitive edge.
Domain transformation
Domain transformation happens when a company decides to step into a new market and it includes a whole redefinition of business processes which is great for digitalization.
For instance, a company can create their own digitalization software and later on sell it to others, creating a new profit stream.
Technology enables businesses to expand and innovate, create products more effectively, and reach new markets.
Staying competitive while achieving continual growth is easier with strategic investments in modernization, optimization, and digitalization.