Digital transformation is all about transforming your business activities, models and processes so you can take full advantage of the type of support digital technology can offer you. It’s about prioritizing, leveraging and strategizing while also keeping both present and future shifts in consideration.
What Is Digital Transformation?
Digital transformation helps you to develop new consistencies and it also helps you by revolving around the general capacity of the business that you have. For example, it can make your company more agile, and it can also help it to be oriented around the customers that you serve. The general goal with digital transformation is that it can help you to move forward faster while also giving you a huge level of awareness regarding your capabilities and the ability you have to make smart decisions. Digital transformation, in the grand scheme of things, is a journey that has intermediary goals connected, with the end goal being optimization across multiple processes. By building the right bridges in terms of the functions that you have, you can then go on to leverage the many possibilities that are available to you while also utilising the new technology and the impact that it could have on your business in general.
Causes of Disruption
Disruptions can be caused by a number of different factors, which now have more impact in regards to your business. Technological innovations now have more weight on the decision you make, but that doesn’t mean that it drives the disruption itself. It’s all about how it is adopted by the stakeholders, competitors and even your customers and partners. For example, you have your own customer behaviour and their demands. This is called induced transformation and disruption is often adopted and turned into a business challenge. One example of how a force that drives digital transformation is not actually caused by the technology itself is that the demand of customers needing ease, convenience and simplicity goes back way before the internet even existed. In this respect, digital transformation could be catching up to this point from a technology related perspective.
The Big Picture
Digital transformation needs to be seen as something that is more than just a buzzword. It needs to be seen as a challenge, and a force. Companies and organisations will need to enable this challenge and force if they want to be able to achieve the competencies they need at the core of their company, given the rapidly changing environments where speed of change depends on a huge range of variants from disruptions to technological innovation and even common business models.
Digital Transformation is More than Digital Marketing
Digital marketing really is an important part of general business activities and the term digital transformation is quite often linked to it. Technological disruptions are usually about markets, workers, customers, stakeholders and competitors, so even if it is related to the evolution of the business, it is important to know that new and emerging technologies can often have a disruptive effect. The transformation of a paper business into a digital business often meant disrupting the flow with the business processes themselves.
On top of this, it is just a matter of time before nobody can make the distinction between physical and digital, and even offline and online. Customers don’t think in these terms at all, and neither do the channels.
Don’t Always Trust the Hype
Digital transformation, in general, is not just about companies who work in the tech industry. This is a mistake that can be explained by the usual suspects. For example, take Uber. They are quite possibly the most mentioned and most controversial because they use digital tech to alter models and markets that are currently available to try and get a lot of hype and attention. It is a mistake to keep on using companies like this as a focal point of digital transformation. There may have been some disruptive episodes which show players and companies having to adapt or die, but it is vitally important to learn from this and to not go down the same road.
The What, Who and Why
Digital transformation often requires a strategy, and this can then go on to fuel the change required as well as opening other opportunities along the way.
- What do you want to achieve?
- What do you need to do first?
- What skills do you need to have?
- Why do you need to transform?
- Why do we need to evolve?
- Who can we connect with?
- Who takes the lead?
Who can help with our building blocks and barriers?
- Who is going to gather insight?
New and Established Ecosystems
The strength of the ecosystems that you have and even the communities that relate to them define the strength of your business. You need to find new revenue streams by connecting systems of high value as well as making sure that you build all of the bridges you need to become a success. The dimension will increase even more when you have an interconnection of everything and even more actionable and intelligence related opportunities. All in all, it is very clear that collaboration and co-creation is very important in digital transformation and this can help to go forward and establish new networks and even new ecosystems as well.
All in all, digital transformation is a huge scope and for a lot of businesses, achieving what they want is all about automating and outsourcing. It’s about taking the manpower out of the business and applying it to areas that require said manpower. It’s also about reducing the cost in terms of operating the business and helping the business to become more dynamic and more operational in general. By studying digital transformation, what it means, what it can offer you and how you could benefit, it isn’t hard to see why so many businesses have it as a focal point. Businesses have even gone on to revolutionise their business by utilising digital transformation to achieve their present and future goals, and no matter what size of business you own, digital transformation is certainly the starting point to your future success.