Digital transformation, as we know, is incorporating digital technology into all aspects and areas of a business. Between 2020 and 2024, the global investment in digital transformation will almost double. (Statista)
Incorporation eventually results in fundamental changes in how companies operate. The transformation doesn’t limit itself to this, but it also implies constantly challenging and changing the ongoing state of affairs & frequently experimenting.
Technology influences every part of our lives, be it personal or professional and similarly we see the impact in core tech and IT consulting companies.
The implementation of digital transformation is altering business processes and, in some circumstances, introducing completely new business classes. With the advent of digital transformation, businesses are pausing to review everything they do, from internal operations to in-person and online customer interactions. By 2026, 54% of CIOs drive business transformation, empowering digitally resilient organizations via strategic technology roadmaps, and replatforming to enable an agile, data-driven, collaborative workforce.
Important questions like can we adapt our processes in a way that will enable better decision-making, game-changing efficiencies, or a better customer experience with more personalization?
Theoretically speaking, there are four main arenas of digital transformation:
Process Transformation: This means the changes that are being applied to improve the existing business processes. This may also include streamlining the processes and adopting artificial intelligence.
Transformation of Business Model: This implies that businesses eventually take another approach or switch to an alternate model to incorporate the transforming trends.
Transformation of Domain Type: A domain transformation occurs when a company is able to shift into another industry successfully. For example, Amazon operates in different domains of Amazon Prime, Web Services etc.
Organizational Transformation: An organization’s culture is built on factors such as leadership, employee interaction, operational processes, etc. A culture that has been digitally altered, tries to bring changes to these aspects too. In research of forty digital transformations, organizations that focused on culture were five times to accomplish breakthrough performance than those that ignored culture.(BCG)
How digital transformation benefits businesses
59% of hiring managers say the rise of AI will have a substantial or transformational impact on the types of skills their companies need. (Salesforce)
- Simplifies current procedures
Business processes like communication, data storage, and analytics can become more adaptable and collaborative through the use of digitalization and cutting-edge, new-age technology, ultimately maximizing results.
- Increases Efficiency
You no longer have to be concerned about unexpected delays as all your operations will be streamlined as a result of digitalization. Digital procedures streamline the flow of information across departments, remove redundant work, and boost business productivity.
In turn, this contributes to cutting the operating expenses linked with complicated workflows.
- Fosters a culture of growth
Strong client bases, higher levels of consumer interaction, effective procedures, and automated workflows are all benefits of digital transformation. And therefore it should come as no surprise that businesses that adopt digitalization find it simpler to develop and thrive.
For instance, a company with no online presence is likely to rely on word-of-mouth and retail sales to make money. However, the company will be able to draw in more clients than before by designing a strong and optimised website. Furthermore, they can expand their business by developing more products that appeal to their clients and tracking the behaviour patterns and feedback of their current customers.
- Empowers employees
The workforce is also given the opportunity to improve their skill and productivity in their day-to-day jobs, thanks to technological breakthroughs and innovations. Using efficient techniques, they can complete their tasks more quickly. Additionally, engineers are exposed to cutting-edge technologies like artificial intelligence and machine learning. They can take advantage of their productivity by adopting AI-powered tools and finish the job faster.
- Helps create digital products and services
In the retail industry, where customers from all demographics frequently opt to buy a variety of different goods and services entirely online, e-commerce has become the norm.
Further, are some insights into how digital transformation has changed the lives of employees:
- Collaboration
The amount of money that many firms are investing in cloud collaboration platforms is growing, and this is changing the way that workers share information and connect with one another. While a return to the office has started in phases, the advantages of these platforms will continue to improve the employee experience by eliminating the need for long travel times for meetings.
- Higher Productivity
Employee productivity has risen as a result of digitized business processes, streamlined workflows, and improved information flow throughout the company.
- Enhanced Client Services
Nobody enjoys dealing with unhappy consumers. Employee and customer experiences have been enhanced by providing staff with quick-response tools and automated portions of the customer journey. Nearly half of all companies say improving customer experience and customer satisfaction were the leading influences to start a digital transformation. (PwC)
- Enhanced Engagement of Employees
Businesses have a fantastic chance to upskill their workforce due to digital transformation. Employee involvement throughout the technology deployment process and adequate Corporate Training are crucial if employees benefit fully from new technologies. Many companies are seen moving in this direction.
Although it is not a simple process, digital transformation is crucial for businesses that want to stay on the cutting edge. It necessitates a total rethinking of how a firm operates, from the ground up. To remain updated, every business component must be reviewed and updated. Companies that go through digital transformation have a higher chance of long-term success. They will be able to service their clients better and be better prepared to deal with market developments.