Digital transformation represents the transition a business undergoes when shifting from their traditional mode of operation to a modern and technology-focused organization. In today’s digital world, change is the only constant. As a result, digital transformation is now imperative for businesses of all sizes. Across industries, digital disruptors are omnipresent. Innovative tools are now required to deliver an excellent digital experience to customers and employees.
Organizations must evolve to keep step with changing business landscapes and realities. Digital transformation provides the strategic framework to accelerate business activities, lower cost, improve time to market, enhance the customer experience, and bring about positive change in processes, people, and competency models.
The following factors influence digital transformations:
- Technology innovation
- Customer behavior and demands, and
- External environmental influences.
Technological innovation creates disruptions for businesses and industries. However, transformation is about more than just technology innovations. It is about the impact these tools can make when they are adopted and used.
Additionally, today’s customers demand advanced technological capabilities and easy to use products. Businesses must prioritize the customer experience and utilize platforms that help deliver the best possible products and services to meet these expectations.
Finally, organizations must strategically plan for transformation while taking into account external influences. Those factors might include regulatory laws, the economy, competition, and business partner demands.
Digital transformation is about embracing new technology. However, it also requires a change in thought and culture. Businesses must take into account changing business scenarios and dynamic business demands to establish innovative methods for fulfilling evolving needs quickly. Business leaders and technology teams should work jointly to meet the requirements, drive innovation, and move the company toward continuous improvement.
Taking into account the 3 pillars of digital transformation businesses undergo this change in hope of seeing the following outcomes:
Companies gain customer loyalty and advocacy by providing customers delightful experience in every aspect of delivery. A digital business is more likely to experience:
- Increased understanding of its customers,
- Top-line growth, and
- Enhanced customer touchpoints.
When organizations successfully digitize processes, enable employees, and promote data-driven decision-making, they are more likely to see greater performance improvement and overall operational transparency. Innovative and adaptive businesses have:
- Digitized processes,
- Empowered employees, and
- Clarity around performance management and decision-making.
Businesses that utilize or create new digital products and/or change existing business models are better able to see and address evolving business needs and foster new thinking and tools to revolutionize industries. These businesses benefit from:
- A transition from physical to digital,
- Reshaping organizational boundaries, and
- Digital globalization.
Digital transformation is ultimately a change management challenge. It impacts all industries, strategic positioning, and all levels of an organization, including every task, activity, process, and supply chain. Business leaders are responsible for continually challenging their team and partners to ensure the change will unlock productivity gains and create a competitive advantage while still delivering an exceptional customer experience.
To learn more about digital transformation, check out this digital transformation roadmap infographic.