Digital transformation is the process of integrating digital technology into all aspects of the company, which requires fundamental changes in technology, culture, operations, and delivery of value. To take better advantage of emerging technologies and their rapid expansion in human activities, a company needs to reinvent itself, radically transforming all of its processes and models. Digital transformation requires a shift in focus to the edge of the enterprise and more agile data centers, to support that edge. It also means getting rid of legacy technology, which can be costly for the company to maintain, in addition to changing the company’s culture to support the acceleration that comes with digital transformation.
Why go on Digital Transformation
Companies are rapidly switching from traditional interactions to digital experiences fueled by advances in technology. This is often not because companies want to transform, but because they need to transform if they are to survive. The market has come to expect companies to create efficient digital experiences, and a company that does not adapt to this new model of digital customer will be abandoned.
On the other hand, a company that accepts changes and adapts to a more agile model has the potential to be more successful than ever. That’s because digital transformation, in essence, means examining all aspects of a company and figuring out how to modernize them, so they can continue to evolve as technology evolves.
Improve processes: New technologies allow companies to automate the simplest processes and eliminate the intermediaries of the most complex processes. This makes companies more agile and allows them to use their human capital in more efficient ways.
Find new revenue streams: Profitable paths, which may not have been open to companies when they were founded, may now be open through emerging technologies.
Create more personalized and attractive customer experiences: Today’s customers expect companies to listen to them and meet their specific needs. Technology has evolved to serve exactly that purpose.
To take advantage of digital data, however, companies need to adopt technologies as soon as they become available, test them, and use that feedback to adapt better and prepare for the future. Even though incorporating new technologies is riskier than using established systems, the rewards can also be much, much greater.
Steps of the Digital Transformation
Although the digital transformation process is different in each company, there are some steps that are important and should be considered by all.
Create a plan that works for business: When starting a digital transformation process, it is vital for a company to know both how it wants to evolve and what new technologies it can use to get there. Companies need to think about all the resources they have at their disposal and which ones can be dedicated to modernization. This can even lead to changes in the priorities of projects and ideas within the business organization, identifying any gaps that may hinder digital transformation efforts.
Get your employees to use and master emerging technologies: This process can be complicated, as traditional business models required employees to learn certain systems and continue to use them for years to come. With digital transformation, employees need to be open to changes in the processes they use to perform their tasks if this is going to make work more efficient. It also means thinking creatively about the potential of new technologies and how they can best be used.
Abandon legacy technologies: Companies often spend a lot of money just to keep old technologies that are no longer profitable and do not offer the digital experience required by the market. This is because upgrading older technologies can be expensive and complicated. However, relying on legacy technology gets in the way of the company as a whole. It consumes valuable resources that could be applied to easier-to-use technologies that would offer better customer experience and/or conduct data analysis more quickly.