Digital Transformation

What is Digital Transformation? | oakfusion.com
Digital Transformation

Our world is changing at a rapid pace, and businesses too! 📈 New technologies influence not only daily life of companies, but also behaviour of their customers. Read our latest article and learn how digital transformation influence modern businesses. ⬇️ Link in the comment

What is digital transformation?

Digital transformation refers to the integration of all available computer technologies within a company or organization. With an abundance of new computer software and hardware, the transformation reaches out everywhere, especially in the following aspects:

  • Development of all web services and online platforms

  • Mobile technologies in the enterprise

  • Creation of cloud services

  • System integration with a huge amount of data analyzing

  • Introduction of Artificial Intelligence and Machine Learning.

As a result, the companies are pushed to accelerate their transformation to optimize all processes and to meet the demand for responsivenesś that digital enables. But what do professionals have to say about digital transformation? Ghislaine Doukhan, executive vice president of Safran Analytics, puts it that way:

"It's not about the digital tools we've been using for a long time in design, but rather about a change in mentality and culture within the company. It's the possibility of easily accessing the most specialized information, the most complex knowledge, thanks to ergonomic interfaces." (L’Usine Nouvelle, 2019).

Digital transformation in facts and numbers

Now we know what digital transformation is all about. But what are the numbers behind it?According to Statista’s research, 6 out of 10 SMEs (small and medium-sized enterprises) are now engaged in a digital transformation process. For 75% the main benefit of the digital transition is better employee performance. The optimization and agility of the organization are also highlighted. Why do people tend to pay attention to those aspects? The new IT management tools allow all employees and partners of the company to have access to the same data, regardless of where they are located. These solutions ensure flexible collaboration throughout the company's ecosystem. Statista also estimates that global organizations’ spending on technologies dedicated to digital transformation (cloud, mobility, big data and artificial intelligence) will accelerate and increase 2.5 times between 2019 and 2024. It will grow from 0,96 to 2,39 trillion USD.

Benefits of digital transformation. There are different levels of digitalization adaptation depending on each organization’s needs and goals. Nevertheless, in most cases digital transformation can increase reach, sales and create new products.

There are a few important areas where companies can start digitalization:

  • Customer experience

  • Business processes

  • Business models

  • Data analyzing and maintenance

  • Software tools.

In short, it means that there is a significant change in most areas of the company’s tactical and operational work. And for the better! The fact that customers are the lifeline of companies has been obvious for many years, but the behavior, digital and mobile technologies, information channels and wishes of customers have changed dramatically. 

Firstly, understanding the customer is the most important task. Social media can help with this and there may already be discussions about the brand or opinions on the internet. According to Annex Cloud, social media represents the highest revenue rate for advertisers in the US.

Secondly, digital technologies serve all areas of a business, from sales and marketing to new technologies and their revenues. A good example of such are comparison shopping engines that can attract customers to companies by being profitable for both sides.

Thirdly, customers' preferences, as well as their data, can be used to communicate with them like never before. It is possible to create a personalized shopping experience that is specifically tailored to the customer. Google Ads are the first and most obvious example of tailored marketing where all users receive adverts especially chosen for their preferences. As a result, this can give companies an edge over the competition.

And the last but not least, digital technologies are also changing the day-to-day life of businesses. That doesn't necessarily mean jobs are being lost. Automation can also create new jobs for skilled workers and for strategic tasks, technology allows time for work that will help the company grow and expand. Digital transformation changed the way in which we process information, work together and share knowledge. For example, a common strategic planning process using online tools can ensure that companies collect issues more efficiently and input is better received, which in the long run leads to greater participation, better engagement and a more efficient process. However, digital transformation is not just about how technology is used, it is also fundamentally changing the way businesses operate. Digital platforms, products and services are complementing or replacing existing products. This opens up new areas of business and enables completely new business models. Thanks to the internet, it is even possible to expand one's business worldwide, which was previously only possible with great effort.

Who is responsible for the digital transformation?

Some functions within companies play more important roles than others in this transformation. 

  • Of course, the General Management is the main initiator of the transformation project within a company.

  • The CIOs (Information Systems Department) and the HRDs (Human Resources Department) play significantly strategic roles regarding the digital transformation.

It is also important to note that public organizations such as the government is a strategic player in the quest for digital transformation: a recent example of this adoption of digital is the inclusion of the electronic signature as an authorized signature for public documents.

Feel interested in what you just read? Do you feel like entering the world of digitalization on your own? Search no more! Check this site and find more information about how your company can do it.

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