The business sector seems to be becoming more and more advanced. We see companies introducing and using different types of technologies in their operation almost every day. These companies are using the concept of digital transformation in order to make themselves successful in the market.
If you also aim to make your business successful today and in the future, Digital Transformation is what you should focus on. In this article, I am going to discuss what this transformation actually means and what strategies are involved in it.
What is Digital Transformation by Definition?
As per Digital Transformation Definition, it is the process of integrating advanced technologies in the business operations so that the company can provide better value and products to the customers.
It focuses on utilizing different tech devices and products in almost every sector of the company, including the marketing and finance wings.
Now that every company is becoming advanced, utilizing digital transformation has become somewhat of a necessity in order to stay competitive. As, it allows you to streamline the whole operation, improve customer relations, and automate tasks for productivity.
Important Digital Transformation Stats
1. Companies that have successfully implemented digital transformation report a 56% increase in revenue, highlighting the importance of clear objectives.
2. For digital efforts including AI communication or remote-first workspaces, around 84% of companies are investigating or now adopting artificial intelligence and machine learning.
3. Data-driven decision-making is enhanced through digital tools, with 69% of IT decision-makers viewing digital transformation as a means to improve process efficiency.
4. Digital transformation can lead to a 22% acceleration in achieving business goals, as per Deloitte’s findings.
Top Strategies for Digital Transformation:
Executing digital transformation in your company is easy. However, it requires following some specific strategies in order to execute it the right way. I’ve discussed the top strategies below:
1. Set Clear Goals:
The first and foremost business strategy that you need to follow is setting clear goals. Starting to transform the business model to make it tech-friendly without a plan won’t do any good.
In fact, it can make things go wrong. So, it is important that you first understand where you want to take the business and then move further.
Setting the Goals:
- Understand the current situation of the company and the challenges it is facing.
- Set clear KPIs that you will use to measure the success of Digital Transformation.
- Create a step-by-step roadmap to follow in order to digitize things.
2. Use Cloud Technology:
Cloud technology is one of the most advanced forms of tech, and you should definitely integrate it into the business model. A huge number of companies are already utilizing this piece of tech in order to streamline their operations.
Cloud technology helps you save and store your data on a remote server safely. Employees can access this data easily no matter where they are. Having a smooth and direct access to resources automates the working process efficiently.
Best cloud technologies to consider:
- Amazon Web Services
- Microsoft Azure
- Google Cloud
- Dropbox
3. Incorporate Artificial Intelligence:
Artificial Intelligence has been a complete game-changer in the business sector in recent years. It helps automate and handle tasks a lot faster than human beings. Besides that, AI also performs tasks with very few errors.
So, it is important to use tools and technologies that are based on AI models. Normal tools are good as well, but AI-based tools provide a lot more efficiency.
Top AI tools to use:
- Tableau for data analytics
- HubSpot for customer management
- IBM Watson for AI analytics
4. Invest in Cybersecurity:
Another Digital Transformation strategy that you should focus on is investing in cybersecurity. Since your company is going to deal with the Internet to handle the tasks, it becomes easier for hackers to attack it. Cybersecurity protocols make sure that your data stays safe in order to save you from any type of loss.
There are several cybersecurity tools and solutions that can be used in this scenario. They might cost a bit, but they’ll keep the whole company safe and secure.
Top cybersecurity solutions to consider:
- Bitdefender
- Norton 360
- Wireshark
5. Prioritize Customer Experience:
Customer experience should always be your top priority while bringing digital changes to the company. That is because customers are the only thing that has the power to make or break your business.
Technology helps with making people’s experience better with your company. It makes interactions a lot faster and smoother. Besides that, it brings personalization in the relationship to have a better impact on the customers.
How to improve customer experience?
- Use AI-powered chatbots for responding to queries faster.
- Personalize each interaction with each customer for a better impact.
- Use AI-based tools to understand customer data and analytics better.
- Improve websites and apps for better usability.
Scope of Digital Transformation in Business
Digital Transformation in the business sector has a huge scope. It’s changing different things completely and benefiting companies in many ways. The following points explain it well:
1. Increased Productivity:
Incorporating technology in business helps with increasing productivity. Many companies use different tools and software solutions specifically to increase the work efficiency of their employees.
For example, they provide them with useful tools for things like project management and video conferencing. Employees use these tools in order to get things done in a more organized and convenient way.
2. Better Decision-Making:
Companies have to make decisions all the time in order to operate properly. These decisions have to be right so that the organization can succeed. Technology helps companies make these types of decisions.
It provides complete analytical reports and other types of data, which helps with making decisions properly. As a result, companies have a better chance of succeeding in the market.
3. Improved Customer Experience:
Digital Transformation helps with improving customer experience as well. To make the customer experience better, companies have to make sure to respond to them quickly and handle their queries and complaints properly.
With the use of efficient CRM tools and AI-powered chatbots, people get to manage and respond to their customers properly and quickly.
4. Budget Efficient:
Technology is extremely budget-efficient. It takes a lot of time and resources to handle even normal tasks like responding to customers. When companies use tech solutions, they get to save both time and money at the same time. Using technology also comes at a cost, but it’s a lot cheaper than hiring human workers.
5. Safety Via Cybersecurity:
I’ve already mentioned how investing in cybersecurity infrastructure is beneficial for companies. Companies go through a proper restructuring and incorporate cybersecurity solutions in their work in order to keep things safe.
It helps them protect sensitive data and avoid any type of cyber threat. Besides that, it makes the security compliant to the best standards such as HIPAA.
6. Digital Marketing:
Digital Marketing also comes under the umbrella of the scope of Digital Transformation. It involves using online channels in order to promote and advertise a brand.
People are now using different online platforms, such as social media sites, to find services and products. By using advanced technologies such as email marketing solutions, people get to reach out to the right target audience and promote their brand properly.
7. Remote Work and Collaboration:
These days, many companies are shifting towards remote work in order to save resources. They’re hiring people from different locations and making them work online. Technology makes sure that people get to do it the right way.
It provides different software solutions for remote work management. Besides that, many tools are also being used to make collaboration between teams easier. People can now work on different projects together without having to meet in person.
8. Green Tech:
Digital Transformation isn’t only focused on the benefit of companies and customers. It also focuses on the benefit of the environment. We all know that running businesses can cause a lot of pollution, which affects the environment.
This thing is being dealt with the help of green tech. It involves using environment-friendly technologies to make sure the company doesn’t put a bad effect on the environment. These technologies include things like energy-efficient data centers, smart IoT for energy management, etc.
Final Verdict
Companies are utilizing digital transformation in order to succeed in this changing market. Technology helps companies become more efficient by automating tasks and increasing employee productivity. It also does things more accurately, which helps in avoiding errors.
The transformation of your business to become more digitalized is an easy process and can be done by focusing on a few strategies. The scope of this transformation is huge and includes making customer experience better, along with the safety of data.
Frequently Asked Questions (FAQs):
What do you mean by Digital Transformation?
Digital Transformation means changing the working process of the business by utilizing different pieces of technology.
What are the main areas of Digital Transformation?
Digital Transformation focuses on different areas of the business sector. However, the most important areas include customer experience, cybersecurity, and data analytics.
Is AI part of Digital Transformation?
Of course. AI is one of the biggest parts of Digital Transformation. Artificial Intelligence is being used in different sectors of a company in order to make things more streamlined.
What are the benefits of this transformation?
This transformation benefits companies in several ways. It automates tasks so that employees can work more productively. It makes remote working and collaboration possible as well.
