Digital transformation not only includes incorporating the use of technology into a business but also a certain amount of change of leadership to promote innovations and new business models.
Use of new technology essentially transforms your business in terms of how it functions and how it delivers its services to its customers.
However, since each business is at a different place in the technological race, there is no one-size-fits-all definition of digital transformation. Digital transformation looks different for different companies.
As it might be well anticipated, if your business is not somewhat digital already, this change can be rough on the company at first, since it actively challenges the status quo and requires all employees to re-learn their jobs. However, this rough patch is necessary for the resultant radical increase in productivity, outreach, and efficiency of the business as a whole.
2018 Tech Pro Research survey has revealed that approximately 70% of the companies already have a strategy in place with regards to digital transformations, or are actively working on one.
Definition and Elements of Digital Transformation
Digital transformation refers to the changes that legacy businesses should adopt in order to solve their existing “analogue problems,” which hampers productivity and performance.
The following are the essential elements of a digital transformation:
- Transforming customer experience
- Transforming leadership and culture
- Enablement of workforce
- Agility of operation
- Integration of digital technology
Digital Transformation Trends 2020
The whole point of undergoing a digital transformation is to keep up with the contemporary customer and to be ready for what is coming. Results of MuleSoft’s Connectivity Benchmark survey can be seen to infer a lot of short-term and long-term business benefits of digital transformations.
The following are a few digital transformation trends that have enough potential to shape 2020.
- Multi-Cloud Computing: Leading research papers suggest over 160% growth in the next year and a half for companies that effectively make use of Multi-Cloud Computing in their business, with the help of API-led application development and containerization.
- Increasing business performance using APIs: Business owners are increasingly suggested leveraging APIs since it does indeed result in a surge in productivity, increased innovation and growth in revenue as well.
- Usage of Machine Learning and Artificial Intelligence: Another trend is increased usage of Artificial Intelligence and Machine Learning. For example, Deputy’s AI powered employee scheduling software leverages the power of auto scheduling to reduce unnecessary wage costs.
- Data is a key driver: Analyzing and unlocking data is central to any digital transformation. Businesses, to improve their customer experience and customer service, collect and put their data to work to find out what exactly their customer base enjoys in a product and to create more customer likable products in the future. Data is everything when it comes to digital transformation. According to Maryville University, a leader in data education, this is why today “data science and machine learning currently generate more jobs than candidates – and they rank among the fastest-growing employment area’s in today’s tech industry.”
- Giving a part of the reigns to the IT: To use technology to its full potential, IT must be positioned as a core enabler in a business. For example, to ensure global payroll compliance or hyper automation of business processes, IT should be leveraged by businesses of all sizes. IT will enable the businesses to be flexible, agile and innovative to survive in the approaching cutthroat competition of faster and more convenient delivery of services.
Digital Transformation as a Business Strategy
Digital transformation, as earlier, used to be referred to as a business “strategy”, however, it wouldn’t be an exaggeration to say that such a strategy has been transformed into more of a business “necessity” today. Below are a few steps a business could use as a successful digital transformation strategy:
- Research: Remember, and write it down: Data is everything. Record and analyze to understand customer behavior to make likable products.
- Change Perspective: Bring about a change in perspective within your own company, to be in favor of a digital overhaul. Everybody needs to know the benefits and everybody needs to be on board.
- Transform Business Goals: Your previous business goals need not be discarded but translated into its digital analogous.
Real-Life Examples of Digital Transformation
A few of the real-life examples of industries undergoing digital transformations are as follows:
- Retail: The recent digital transformation has completely revolutionized how people buy and sell things today. These stats prove the effectiveness of digital media in retail, especially ecommerce. It is remarkable, how digital transformation can successfully bring an unthinkable surge not only in your particular business but in the whole industry your business works as a part of. You can think of Amazon as one of the best examples.
- Pharmaceutical Sector: According to a study by McKinsey & Company, 70% of people use the internet for health information and over 40 percent of patients diagnosis themselves through Google before arriving at their doctor’s office. In addition to more (if not necessarily better) informed clientele, there are a number of technologies that are disrupting the industry and providing better, more efficient patient care and treatment. These include using electronic health records, wearable technology, and Internet of Things (IoT) tech like drug packaging that can monitor optimal storage temperature in real-time.
In conclusion, a digital transformation might be a huge step for a company, but it is a gift that keeps on giving. It has the potential to not only shape your business but your entire industry. Do not forget the basic tenets and apply them everywhere. Data is everything— collect and analyze.