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How Digital Transformations In Business Works

Learn what it means to imply digital transformations in business.

Tricky Facts About Digital Transformations In Business

Digital transformation or DX is a total buzzword in today’s business world. But if you are to define DX, how would you put it in words?

Consider how Wikipedia puts it,

“Digital transformation is the adoption of digital technology to transform services or businesses.”

We all agree with that. Digital transformation either replaces or modifies manual or old digital technology with what’s latest. 

With that one said, digital transformation appears so promising. While it is true, DX can also be overwhelming. Most especially for businesses who are not into tech-savvies. 

To help you get a more rounded understanding of DX, consider the following two (2) tricky facts about it. 

Fact No. 1: Customers Drive The Change

Although digital transformation in an organization begins on its top. But, in reality, it should start with the customers.

C-level executives may sponsor, lead, and begin the initiative. This is true. But from the very start, the basic fact and drive of DX should not be missed. That is the change that should be driven by our end customers.

How do customers in the market respond? What do they expect? How can we meet them? 

These concerns should be considered upon taking initiatives. Perhaps the digital mindset should now reshape the way leaders think when dealing with their customers.

Fact No. 2: Digitalization Does Not Mean Transformation

Is the change of tools automatically means transformation.

No, it is not.

However, it is true that in DX, we should change the means of business processes through tools and software. For example, today, office documents are better replaced with the Google Suite. What better way can we create, edit, and share documents than through the cloud?

This shows a change or shift of tools. 

However, this does not necessarily imply transformation.

Why?

Digital transformation is an overall culture change in a business. It should influence not only the means of processes or the use of technology. But most of all, it is driven by a digital mindset. A digital mindset influences how people inside an organization decide and act. In how to better make use of technology, for instance.

Thus, DX implies more than just the use of technology. But it is the holistic, comprehensive, and strategic application of technology. In line with this, DX should be driven with a digital mindset.

4 Main Business Aspects Of Digital Transformation

Here are four main business aspects of digital transformation.

Digital Infrastructure

Refers to the adoption of cloud-based tools for software operations. It also affects the storage, retrieval, and computation of data.

Transforming Core Operations All Throughout

Reshaping core operations from physical to digital by value.

Experience

DX should also consider customers’, employees’, and partners’ experiences.

Information Management & Analytics

Most of all, following a digital mindset, should come from solid data-driven decisions. So digital transformation should enable insights and analytics. By doing so, operations, customer service, marketing, and business culture are all changed.

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