Digital Transformation – Introduction, Benefits, and More

What is Digital Transformation?

Digital transformation is the combination of digital technology in all areas of a business, fundamentally varying the way it functions and delivers value to its customers. It’s also a cultural shift that forces organizations to constantly challenge the status quo, experiment, and feel comfortable with failure.
Thus, digital transformation can involve reworking products, processes, and strategies within the organization by leveraging digital technology.

As such, digital transformation requires an examination and reinvention of most, if not all areas within an organization, its supply chain, workflow, the skills of its employees, as well than company-level discussion processes. management, customer interactions and their value to stakeholders.

Benefits of Digital Transformation?

The key for the organization is to see digital transformation as an opportunity to combine practices and conducts of doing things that result in new techniques and skills.

• Create new customer experiences
• Improve operational efficiency
• Generate new sources of revenue
• Ability to react quickly to market changes.
• Create a competitive advantage for the organization.
• Fosters the culture of innovation within the organization.
• Improve internal collaboration.
• Deepens data analysis (Big Data).

Therefore, all this describes the great relationship between business results and the technologies on which digitization is based. Customer experience prevails over traditional values and makes technology, especially software, the main element of business models.

Despite the clear advantage of the United States and the Asia/Pacific axis, Europe is not far from reaching the fourth digital revolution. It is therefore essential to accelerate the implementation of a digital single market.

Digitization taken more as a process than a goal, requires attitudes willing to change and constant adaptation that involves stepping out of a comfort zone to seek new opportunities.

Therefore, organization lives in a digital, global and hyper-connected world which is characterized by a change at the social and technological level influenced by the continuous irruption of new players in the markets, delocalized mobility and continuous connectivity.

6 Objectives of the Digital Transformation Procedure in Companies

Disruptive technologies allow companies to completely transform their reality, from the practice they offer to their customers, to the way they progress their internal processes and even the organizational values they live on a daily basis.

With so many possible changes, organizations are looking to digital transformation to reach different goals. And also, learn about the foremost ones below.

1. Conquer new clients and retain existing ones
2. Reduce costs
3. Provide a basis for decision making
4. Improve employee productivity and performance
5. Work the digital environment
6. Increase brand visibility

6 Challenges on the Path of Digital Transformation

Therefore, the very use of the word “transformation” indicates that a lot of work is expected from companies willing to initiate such a program.

As in any large (and lucrative) project, we can expect challenges at all stages of this process, but mainly to start it.

And also, these are some of the main obstacles that prevent companies from implementing digital transformation:

• lack of initiative
• technical difficulties
• Reputation and security
• Return guarantee
• company culture
• IT problems

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The Roadmap: Understand its 5 Phases

While it is quite clear how important digital transformation is to businesses, the task of implementing it effectively can seem complex to those who are not used to the concept.

And also, to facilitate the process, we have simplified it into 5 stages that you will see below.

1. Focus on the customer experience
2. Investment in digital talent
3. Digital implementation at all levels of the organization
4. Incorporation of innovation
5. Measurement of results and vision of the future

Conclusion

Digital transformation is a key element of an overall business transformation strategy, and while it is not the only factor, it is critical to the success or failure of any transformation initiative. Therefore, the right technologies, along with people, processes, and operations, give organizations the ability to quickly adapt to disruptions and/or opportunities, meet new and changing customer needs, and drive growth and innovation in the marketplace.

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