We can find a lot of businesses are undergoing digital transformation these days. This is the process, wherein they use digital technologies to bring transformation in their existing conventional and non-digital business services and processes or create new ones.
It helps them fulfill the requirements of the customer expectations and evolve the market in the best possible manner. Read on to learn more about the importance of going digital in the growth of the business.
What is Digital Transformation?
Digital transformation is to become a digital enterprise wherein an organization uses technology to constantly evolve in all aspects of business models. This includes what it offers to its customers, the way it communicates with customers and the way it functions.
It is important that with the evolution of technology, a business should also evolve. It is the way that enterprises choose to transform that matters in the industry.
“Digital transformation refers to IT modernization, digital optimization, and the invention of a new digital business model. It is linked to the use of digital technology to help in the creation of new business processes or the evolution of the existing ones.
What is Digital Transformation with respect to enterprises?
Digital transformation is a process to examine the needs of the customer and leverage technology to enhance the overall experience of the end-user. The end-users could be employees, customers, and several enterprises.
The popular publication, MIT Sloan Management Review, it aims at the ways in which management transforms itself in the digital age. Digital transformation is viewed to be a continual adaptation to a continuously changing environment.
For enterprises, digital transformation could mean seeking out ways continuously to enhance the end-user experience by offering them the following:
- improved on-demand training,
- migration of data to cloud services, and
- leveraging AI
Types of Digital Transformation
MIT Sloan Management Review emphasizes three prime areas of digital transformation mainly for enterprises:
- Customer Experience,
- Operational Processes, and
- Business Models
What is the significance of Digital Transformation?
Though each initiative of digital transformation has its specific objectives, the key objective of digital transformation is to enhance its existing processes. It is very important for a company to evolve and remain competitive in the industry.
A study performed by Bain and Company reveals that “only eight percent of worldwide companies can accomplish its targeted business outcomes from the investments made in digital technology.
Digital transformation holds immense value in an organization as it enables organizations to adapt themselves to ever-altering industries and continuously enhance the way they operate in the business.
Reasons Why Digital Transformations Fail
Digital transformations could fail due to several reasons. The prominent ones are:
- Measurement, and
The Key Strategies of Digital Transformation
To understand the basics of digital transformation, it is important to look closely at the following pillars of digital transformation.
- Experiences: Successful digital transformations result in a positive experience for the people.
- People: Culture not just drives digital transformation but is also the key barrier. Strengthen this pillar by designating change leaders that support and speed up your transformation. This helps enhance the human experience.
- Change: Adopt proven models for change management and best practices involved in the communication of change management.
- Innovation: Create space for collaboration as well as new ideas. Innovation offers support for digital transformation by inspiring a business to identify creative solutions to different types of problems.
- Leadership: A leader should establish key performance indicators and direct his team towards a successful transformation.
- Culture: Adopt a people-first approach and then make a transition to technology.
Ways to Measure Return On Investment in Digital Transformation
Digital transformations need investments in terms of time as well as money. Due to this, it is important to compute the return on investment. Measure and track the success of digital transformation by following the below steps:
- Set goals
- Establish key performance indicators
- Monitor progress regularly
Digital transformation has become an absolute requirement for every enterprise organization. It is the process to alter the way in which businesses are managed and operated. It also delivers a better experience to customers and leads to returning customers. If you want your business to benefit in the above ways, then you should adopt digitalization.