Godfrey Colet, Negosentro | Regardless the excitement surrounding digital transformation, most companies still have a long way to go in their digital transformation journey. Digital transformation is only possible through capable business leadership in adapting new or re-envisioned traditional technologies. The key to digital transformation lies in the way a business operates. It is a people and management challenge as much as it is a technological challenge.
What is Digital transformation?
As a hot topic for businesses all over the world, digital transformation is the use of digital technology to improve the reach and performance of a business enterprise radically. Leaders in all businesses have endeavored to the use of digital devices such as smart embedded devices and social media and have also improved in their use of traditional technology to change the internal processes, customer relationships, and value propositions for their businesses.
As transformation is challenging, businesses have to be clear on their justification for the change. In fact, some businesses face some imminent threats than others. The major motivation for digital transformation is the desire to satisfy customers who have become better informed than ever. Most consumers are actively looking for businesses with high levels of quality, lower prices, and enhanced services. The showrooming opportunities that were offered in retail environments, where customers physically visited an offline store to view the items they want and then order them from online vendors is an example of the increasing sophistication that are sort by customers as they seek for the best deals.
The impetus need for transformation can also arise from new business competitors with better engagement models, enhanced offerings, or lower prices. Alternatively, it might be as a result of the easy-to-use low-code platforms that businesses are adapting to increase efficiency. Firms like Amazon and Google are entering the new markets and disrupting the order of things resulting in a necessity for digital transformation. The pressure for change might also be as a result of emerging technologies that enable new capabilities.
Benefits of digital transformation
- Improved efficiency
Digitally transforming your business will eliminate the existing roadblocks and processes that slow your business down. For some businesses, it might have been the challenge of manual data entry, in such instances, systems don’t communicate with each other, so you have to manually enter the required data from different areas. In other cases, it is a process bottleneck. One process can throw a single department and create a holdup. These bottlenecks result in delays. Digital transformation eradicates the challenges, and once a legacy process is replaced with automated workflow, the friction in your business is reduced, and systems begin to flow much more easily.
- Improved decision-making
The past decade has experienced data explosion. It has become essential for every business to access much more data than ever before, and the volumes of the data only keep increasing. However, very few businesses have capitalized on the data. They lack the tools and the processes that are needed to turn the data into meaningful information. In such cases, the digitally driven business has the upper hand as they can use modern Business Intelligence tools and use the flow of data to gain insights into properly managing their businesses.
- Improved reach
Digitally transforming your business puts your products or services in the palm of your customer’s hand at any time of the day and any season of the year. It enables your customers to learn about the nature of your business and make a purchase anywhere and at any time. Digital transformation involves making your business available to your customers by designing your website and applications to adapt to any device and be accessible to your customers anytime.
Digital technology is transforming the commercial world, and many businesses and companies are benefiting from it. Whether it’s in the way they work or collaborate, the way they execute their digital processes, or in the way the business understands, connects and reaches its customers. Digital technology provides a wealth of opportunities for those who are willing to take advantage of it.