Businesses worldwide are undergoing the digital transformation. What does that mean? Is it important for businesses? Let’s answer those questions in this article.
Public and private sectors worldwide launch digital transformation projects. In fact, global spending for such technologies and services will grow by 10.4%. That will amount to $1.4 trillion in 2020. Moreover, it is projected that the spending will reach $2.3 trillion by 2023.
Definition Of Digital Transformation
According to a source, it is “reshaping industries by disrupting existing business and operating models”. Whereas, it involves using digital technologies to make a process more efficient and effective.
The digital transformation is not to replicate an existing service to a digital form. It is to transform that service into something better. Furthermore, it also involves using digital solutions on the ‘heart of your business’.
Furthermore, it is not enough to install technologies. It changes how a business operates. It involves changing the processes and culture of a business. As a result, all areas of your organization have been influenced. That includes company operations down to how your clients receive your services.
Simply put, it changes everything from how a company operates up to its culture.
Difference Between Digitization, Digitalization, And Digital Transformation
These three terms might cause you a headache. Are they all the same or completely different?
This is about conversion. It mainly includes converting a physical format to a digital format. For example, scanning paper documents and saving them digitally (PDF). One more example is converting a video from VHS to a digital format. Then, uploading it into a hard drive.
This makes the company’s processes more efficient. Digitalization’s primary goal is to make the work more collaborative. The goal also includes increasing productivity and profit.
One great example of this one is Google Suite. Let’s take Google Sheets as an example. Instead of using a USB drive to transfer the spreadsheet from one PC to another, the company can simply upload the file to the cloud storage. Then, members can simultaneously edit the file in real-time.
This is more about people than the digital technology. Moreover, this requires changes in the organization. Furthermore, it requires a wider adoption of digital technology and cultural change.
Importance Of The Digital Transformation
It helps businesses to unlock more potential. Additionally, it enables businesses to reach more customers with less cost.
To sum, it increases the effectiveness of a business. A business will make more money. That is without investing heavily more in traditional operational methods.
Not adopting digital transformation to your business will lead to disastrous results. Moreover, customers demand professional settings. It is really important to make customers happy. Furthermore, it is impossible to improve the customer experience without going through digital transformation.
In fact, many companies say that customer experience and satisfaction were their main reasons for digital transformation.
Benefits of Digital Transformation
- Access to tremendous amounts of data.
- Increased collaboration across departments
- Enhanced customer experience
- Improved agility and innovation
- Developing new skill-sets
- Enhanced operational efficiency and lower costs
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