These days it has become quite common for entrepreneurs to talk about business productivity, market values, and digital transformation. Indeed, the term “Digital Transformation” has become a buzzword throughout the world. Regardless of the fact that many industries had already transformed with cutting-edge technologies, many are still confused about what digital transformation is. To make it apparent I will elaborate on the meaning of digital transformation in simple terms.
What is Digital Transformation?
Until a few years ago, all business operations were carried out manually, which means that customers have to go to a shop (or) a mall (or) a market (or) stores to purchase products. But are we still following the same pattern? Not at all. Isn’t? We can buy any product, whether it is clothing, groceries, electronic appliances, and household supplies, from many web apps such as amazon, zomato, myntra, big basket, Flipkart, and so on, from any place at any time with a single click. Things got fairly simple for us these days. Everything is right at our fingertips. What do you think? How this process was made easy? This is all due to modern technologies. Incorporating contemporary technologies and tools had transformed businesses completely by automating the business workflows effectively. I hope you’ve gained a sense of digital transformation by now.
Simply summarize, upgrading existing businesses or upcoming businesses using trending technologies and executing business processes over the internet is known as digital transformation. The necessity to integrate the latest technologies and tools has grown significantly over the past four years in order to remain competitive globally.
Digital Transformation Journey
Though Digital Transformation seems to be a simple term, it has a deeper meaning. Digitization, digitalization, and digital transformation are related. Let’s go through each term in depth now.
Digitization
Digitization is a process of converting analog data into digital form. In short converting audio, videos, images, texts, and data into digital code is referred to as digitization. Digitization eliminates the need for paperwork and other analog materials in turn helps the company in saving money. Through digitization the data can be accessed and analyzed, allowing for making better decisions. Digitization is the primary phase in the digital transformation journey.
Digitalization
When it comes to digitalization, is the process of leveraging digital technology to improve business operations. In general, digital technologies are integrated with digital data to improve business productivity and efficiency. Work is simplified by digitalization, as software-driven technologies and tools automate manual business operations.
Digital Transformation
Digital Transformation involves more than just modernizing businesses by making use of digital technologies. It is, in fact, more than just business transformation. Digital Transformation is the process of understanding a company’s goals, day-to-day business operations, work culture, business models, capabilities, employees, customers, and clients, and changing every basic of the organization via digital technologies.
Trending Technologies in Digital Transformation
Artificial Intelligence (AI), Blockchain, Augmented Reality (AR), Virtual Reality (VR), 3D visualization, Bigdata, Drones, Internet of Things (IoT), Cloud, Robotics, and other emerging technologies are being used by global businesses to foster digital transformation. Before we get into how digital transformation can impact your business, let’s take a closer look at a few of them.
Artificial intelligence (AI) is a technology in which computerized machines solve issues by making smart judgments while thinking like humans. In this technology, machines are trained to replicate human activities. AI models such as deep learning, machine learning, and the neural network have already penetrated a wide range of industries like healthcare, education, finance, law, manufacturing, banking, logistics, security, and so on. Additionally, artificial intelligence is applied for image recognition, speech recognition, chatbots, natural language generation, and sentiment analysis. It’s really no surprise that AI has already become a part of our daily lives. Face recognition to unlock smartphones, Google voice assistants, chatbots, Siri, and fully automated vehicles are just a few instances of how artificial intelligence is being used.
Drones are also known as Unarmed Aerial Vehicles (UAV). It’s not difficult to grasp what drones are. Drones are highly programmed computer-controlled aircraft. However, drones can either be pre-programmed or controlled remotely by a pilot. They are the supercomputer, which resembles a miniature aircraft with a camera and display. Drones have become commonplace in many industrial areas. UAVs are often used in commercial industries such as construction, infrastructure, agriculture, oil, gas, energy, utilities, and so on.
Blockchain is a technology that focuses on improving the security, monitoring, and transparency of business data that is shared throughout a company’s network. This technology helps the employees to access the business data within the network premises. Businesses use blockchain technology to safeguard business data against cyber attacks, malicious activities, and data modification within the business network. Perhaps blockchain technology is also known as Distributed Ledger Technology (DLT). Blockchain technology is widely used in banking, healthcare, cyber security, supply chain management, finance, pharmaceuticals, and other areas. We’ve been hearing a lot about cryptocurrencies nowadays, and bitcoin is a real-time application of blockchain technology. Bitcoin blocks contain all the information regarding the sender, receiver, and exchange of bitcoins. The recorded data is secured in the ledgers against threats.
Augmented reality is a technology that has gained popularity in the last five years. It can connect the real world with computer-generated materials such as audio, videos, images, and other content. In fact, it is best described as an interactive world. Nowadays we have the devices like mobile, tablets, and wearables that support augmented reality. The main objective of AR is to improve user experience by integrating the real world with virtual content. Industries like construction, education, healthcare, real estate, furniture, manufacturing, interior designing, and entertainment use augmented reality to provide a better experience to users. Snapchat, IKEA mobile app, Pokemon GO, arloopa, and 3D Bear, are a few examples of augmented reality applications in various sectors. Even the filters on your smartphone come under augmented reality.
Keeping it crisp and simple 3D visualization is a technique that provides digital 3D representations of real-world things. To make pictures (or) things appear more realistic, 3D visualization is used with 3D rendering, 3D graphics, and Computer Generated Imagery (CGI).
Moving on to Virtual Reality, VR technology completely creates a non-realistic environment to provide users with an awesome virtual experience. The sole difference between virtual reality and augmented reality is that in virtual reality, users will be able to see and touch virtual items using special electronic equipment such as helmets with screens, glasses, and sensor gloves.
Types of Digital Transformation
Most entrepreneurs really would like to digitally transform their businesses but are uncertain about which areas need to be changed. If you’re stuck at this stage, check over the four types of digital transformations and select the best one for your company’s needs. Here we go.
Business Process Transformation
Firstly understand the business objectives and tailor the transformation process to fit your specific needs. By identifying the goals the transformation becomes easy by modifying the process. evaluate your existing process and improve them through advanced tools. if necessary change the process and make the required adjustments.
Business Model Transformation
These days most businesses are converting their conventional business models for staying ahead in the global competition. Reshaping current (or) ineffective business models can be changed based on your business goals to achieve success. Use current trends, manufacture new products, change pricing strategies, modify your business model according to your goals and stay ahead of the competitors.
Business Domain Transformation
Domain transformation is the process of migrating business operations and data to the cloud, and many businesses are intending to do so. Domain transformation can help businesses improve scalability and agility. Choosing an appropriate domain according to your workflows as well as data and consulting the right cloud services provider plays a major role while opting for domain transformation.
Business Culture Transformation
Implementing new technologies, reshaping business models, and modernizing existing systems are not enough to achieve digital transformation. On the other hand, maintaining excellent culture and internal values is also crucial. Discussing workflows with employees and making them understand the necessity for and importance of digital technologies can help in the establishment of good work culture at the organization.
Impact of Digital Transformation
Digital Transformation is adopted by most business organizations due to its massive benefits. According to the Gartner survey, digital transformation is revolutionizing business growth by 30% while reducing challenges by 45%. Learn more about how digital transformation has impacted industries ranging from start-ups to multinational companies, allowing them to create wonders for their businesses.
Enhanced performance via Digital Transformation
To begin, as digital transformation allows organizations to simplify their business operations and speed up workflows through automation, which in turn benefits in enhancing employee efficiency and business productivity. RPA (Robotic Process Automation) can complete work 20 times faster than humans and with zero errors. Businesses can use RPA to simplify and speed up their business operations. Business intelligence and big data analytical tools, help businesses in analyzing data to make better-informed decisions. As of 2022, the industries that have implemented RPA witnessed an improvement in their business productivity by 22%.
Improved product quality via Digital Transformation
Delivering quality products to consumers is the ultimate goal for product-based industries. Digital Transformation has made this easy for businesses through digital technologies like Artificial Intelligence, 3D visualization, data analytical tools, Machine Learning, etc. Businesses are able to deliver high-quality products to customers based on their niche by analyzing the information gathered from various sources through digital tools. Digital Transformation has helped industries in enhancing their product quality by 16%.
Better customer satisfaction via Digital Transformation
The main objective of every business is to satisfy its customers. Previously, industries offered products and services based on available resources. However, with the digital transformation, entrepreneurs are now providing services based on customer interests. Personalized customer service by analyzing enormous amounts of data using cutting-edge technology and techniques in order to fully satisfy consumers. Incorporating digital transformation has assisted firms in increasing customer satisfaction by more than 12%.
Timely market reach via Digital Transformation
It is not as simple as we think to launch a new product. It includes several processes like development life cycles, planning, quality assurance, testing, monitoring, and deployment. Integrating digital technologies into business systems has drastically revolutionized business operations through automation. The work process is simplified by digital transformation by shortening the development lifecycle, allowing products to reach the market on time. Industries are able to launch their products into the market 11% faster with DT.
Apart from these, DT has transformed businesses through improved customer involvement, enhanced agility, employee collaboration, increased digital presence, and scalability, as well as by making business processes resilient.
Conclusion
Focusing on entrepreneurs, there is no specific strategy for digital transformation, even as adopting emerging technology to help business growth is not defined as digital transformation. Actually, digital transformation is the process through which entrepreneurs outline their business goals and design the workflow, manage data, leverage technologies, maintain a positive work culture, and satisfy clients and consumers. The strategy or plan which drives you to reach the goals is called digital transformation.
As of now, technologies are playing a crucial role, there might be some other advanced models that might rule global businesses. Being in the business world entrepreneurs must adapt to new trends, and modify their business strategies accordingly to stay ahead in the global competition. Employees, too, play an important role in digital transformation. Don’t throw technologies, tools, and software on employees as you modernize your organization. Entrepreneurs must explain and ensure that their employees understand the change and adapt to it in order for the business to run smoothly. Transformation is not only incorporating advanced trends it is also the way of changing the entire business system right from the foundational stage.
Don’t be in a hurry of implementing digital transformation into businesses, reshape it based on the goals, process, domain, and organizational culture. We believe this blog has covered all aspects of digital transformation. If we have missed something vital, please let us know in the comments section below.
