What Problem Does Digital Transformation Solve?

Posted on July 26, 2018

digital transformation problemDigital technologies have profoundly altered society by changing the ways businesses operate and the way customers shop, work, and live. This shift is affecting every industry. Organizations must respond to the ever-evolving and strict demands of today’s customers. Modern, digital businesses have successfully navigated the digital environment and are gaining market shares over their slower-moving competitors.

The phrase “digital business” is primarily used in the context of digital transformation. Digital transformation is the integration of digital technology into all areas of a business. Transformation is more than shifting processes, introducing one or two new digital tools, or diversifying current offers. It means a complete overhaul of the foundational components of the business, including infrastructure, culture, marketing, workflows, products, employees, and customers. There is no end to digital transformation. Instead, it is an ongoing journey that is responsive to the evolution of technology and customer expectations.

Digital transformation further refers to the evolution of an organization’s processes and models. By using digital tools to help analyze information and create deep connections, organizations can revolutionize the customer experience.

Today’s customers expect personal engagements made possible with cutting-edge digital solutions and ground-breaking products and solutions. The process of digital transformation arms businesses with the tools, processes, and culture required to respond to customer demands and remain competitive.  

Digital technologies have enabled new business models and challenged legacy businesses to change. Companies have turned to these tools to meet the demands of today's customers. Some of the fundamental driving forces are the capacity for innovation and the integration of technology into consumers’ lives. A digital business has reached the “innovative and adaptive” stage of the digital maturity model. To learn more about this model, check out our post, Digital Transformation Stages.

Reaching this stage requires a broad and connected ecosystem of processes, technologies, business functions, infrastructure, and people. Each of these pieces is integrated, and teams work cross-functionally with the explicit purpose of improving the customer experience. Digital businesses promise to create an unprecedented convergence of people, business, and technology that disrupts existing business models.

Meeting customer needs is about more than just technology. A digital business is one with a people-centric view, where digital technology is used to enable people to succeed, optimize all business functions, and make a company competitive and profitable. These businesses work to add value to the lives of customers and support their entire journey.

Furthermore, using technology to focus on people (customer and employees) sometimes requires disconnecting from the drive for efficiency and new technology. Optimization does not work if businesses fail to recognize the human element and the importance of human connections. Employees need the conditions, space, and environment to be creative, and customers need the opportunity to be nurtured and cultivated.

Businesses turn to digital transformation to keep pace with ongoing industry disruptions and meet customer demands. Intelligent investment in digital solutions enables companies to move through the digital maturity model and maintain growth, profits, and customer satisfaction.

Check out our resource, Your Digital Transformation Roadmap infographic, to learn more about digital transformation.

Download the Digital Transformation Roadmap

This entry was posted in customer experience, technology, today's customers, customer engagement, digital transformation

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