Digital transformation is a necessity for organizations. However, many business leaders have no idea where to begin. In this article, we will explore digital transformation best practices, challenges, technologies, and more.
Digital transformation is more than a fad for enterprises. Technology is rapidly reshaping business in various ways. Companies that do not adapt to the latest technologies will eventually fall behind.
To put it simply, digital transformation is the necessary, yet challenging journey of operating business processes with the speed and agility to change rapidly, harnessing technology to create streamlined operations and enhance productivity by automating simpler business tasks.
The secret behind digital transformation is how to utilize technology to redefine a process so that it enhances its efficiency and effectiveness. It is not enough just to evolve an existing service into a digital version. Business leaders must focus on improving processes to achieve true digital transformation.
Technologies and thought processes
A few technologies used in digital transformation are the Internet of Things (IoT), Blockchain, Big Data, cloud computing, Artificial Intelligence (AI), and Machine Learning (ML). There is more to digital transformation than simply adding technology. A significant part of the transformation includes changing employee thought processes.
If your corporate culture is not conducive to change, then it will not be easy for your organization to introduce new business processes on the path to digital evolution.
Digital transformation is primarily about how you use digitization technologies like AI, IoT, customer engagement, data, and analytics to enhance the value of your product. You also must think about how to improve the value that your customers derive from your products and services.
How digital transformation will impact spending
Since the COVID-19 pandemic reshaped business needs worldwide, enterprises began using less traditional processes and turned their focus towards spending on digital transformation.
According to a 2020 Flexera report, 54 percent of organizations indicate that digital transformation is a top priority. The report found that organizations were embracing the concept of digital transformation because it is essential to creating a compelling customer experience that drives future business success.
Business executives expect greater sales from digital transformation and are hopeful that business will thrive in the new environment. They fully understand the great potential digital transformation has to change today’s business landscape.
Why digital transformation is a must for organizations
No matter which industry your business is in, competition in the corporate world drives innovative thinking. A company’s closest competitor may find a new solution and beat yours at the game. Innovation means businesses need to stay ahead of their competitors. They must ensure their initiatives are keeping them one step ahead of other companies in the industry.
Digital transformation is crucial for every enterprise. Using modern digital transformative techniques allows you to engage more closely with your customers, analyze how your products are performing and if they are meeting customer expectations.
A digital transformation strategy gives IT employees a chance to enhance IT integration with company goals. Technology must become the frontline of strategy. Digital transformation is essentially the consumerization of technology. For B2B companies, all roads will eventually lead to B2C and ultimately the customer.
Transformation in manufacturing
One of the most difficult industries to implement digital transformation in is manufacturing. The traditional manufacturing industry remains extremely siloed. Digital transformation breaks down silos to deploy best-practice analytics across various sites and suppliers in weeks, rather than months or years.
Transformation improves working capital efficiency and timely delivery. Manufacturers can therefore use digital transformation to work faster, reduce costs and achieve better results.
Challenges to digital transformation
If digital transformation projects are too ambitious, they are likely to fail. Transformation is really about digitizing every aspect of a business. For it to be successful, you need to bring about a revolution in the supply chain activities as well as the company’s culture.
To achieve success, organizations must focus on deploying solutions that can be adopted across all levels of the company. However, several digital transformation initiatives fail to target specific objectives. Many teams get excited about terms such as Big Data, predictive analytics, and AI, but remain focused on the technology and do not aim to solve essential business problems with a clear return on investment.
To succeed at digital transformation, leaders must remain focused on the need to change. Digital transformation is ultimately about continuous innovation. Business leaders must remember that stagnation breeds failure. Successful organizations must be change-ready.