What is digital transformation?
The definition of digital transformation says that it’s a technological and cultural change. To be more precise, it involves using technology in order to transform analogue processes into digital processes. Digital transformation is the process of using digital technologies in order to create new business processes or modify existing ones. The transformation is connected with digital solutions and technology interaction. They are combined with each aspect of the functioning of the company.
This kind of transformation assumes that a certain organisation has to significantly change the way it operates and the way it offers benefits to the customers. Digital solutions can help the company to expand the staff. They can also lead to transformations of business processes and business models.
The article was written in cooperation with Victor Marco – the founder of Silicon Cities.
Digitisation, digitalisation and digital transformation are not the same
We have to distinguish the concept of digital transformation, the concept of digitisation and the concept of digitalisation. Many people think that these terms can be used interchangeably, but that’s not true.
Digitisation is the process of integrating digital technologies with existing business processes. Digitalisation, in turn, is transforming information and documents from analogue formats to digital formats. There is technology behind digitalisation and, at the same time, there are people behind digital transformation.
There’s a fundamental change in the way of thinking of the customer experience, business models and running a business. With digital transformation, there are new ways of delivering value to the customer, generating revenue and increasing efficiency.
Why is digital transformation important?
In recent years it has become more and more evident that companies which want to grow and be visible on the market have to take action to strengthen their competitiveness and their ability to appropriately respond to the current situation. They have to develop and transform their digital infrastructure.
For example, they need to answer fast-changing market demands and customer needs. They must take into account the need for personalised and innovative products as well as the need for modernisation of traditional business models.
“How quickly can I start” instead of “Are changes necessary?”
The growing popularity of the digital transformation across industries is clearly noticeable especially after the Covid-19 pandemic. Business leaders feel they need to modernise processes and old systems. They don’t want uneconomic and outdated models of business. They want innovations such as systems driven by artificial intelligence.
“Are changes necessary?” Today’s entrepreneurs do not even ask themselves the question. Instead, they ask how quickly they can start digital transformation in order to beat off competition quickly. They know the benefits of this kind of transformation, and they are ready for changes.
THIS REALLY WORKS
There are a few great examples of digital transformation such as Adobe which resigned from a licence-based model and started again with a subscription-based model. Another example is UPS — they wanted to speed up the process of delivery and decided to start a transformation in logistics and operations. We also cannot forget about Nike which enhanced their brand image and customer experience. Of course there are more of that — all the examples show us it’s worth it.
How to properly carry out digital transformation?
There are four early stages of the digital transformation process. It’s worth preparing the strategy of digital transformation and a concrete plan, taking into consideration what are the best possible solutions for meeting the specific needs of the company. Also, while carrying out digital transformation we should bear in mind that there should be no lapses in communication if we want our company to function effectively.
Find your starting point
The first stage is conducting an audit of existing systems and resources. You should pay attention to which machines are already digitised. You should think about which machines might require IoT Gateway. You have to find out whether you have a modern, scalable ERP system or databases with disk storage systems.
If you want to start your digital transformation ASAP, you ought to know which processes have a high operational priority and which paths of the processes are the least complicated.
Set priorities
Digital transformation requires priorities in a smart way. By “smart” we mean not to plan a marathon if you’re not able to run at least a few kilometres. This metaphor refers to digital transformation which shouldn’t be applied at once in its fullness. It’s much better to use smart technologies reasonably, one step at a time. Indeed, they are designed with scaling and integration in mind.
Develop a plan
Smart technologies have a few advantages — they are scalable, and it’s possible to quickly and easily deploy configurations and change configurations. The third step is to develop a good digital transformation strategy which allows for flexibility and development. However, a few important and achievable goals will be enough to start.
Additionally, come up with a sound migration strategy and a change management strategy. It’s crucial, because digital transformation is not just about new technology implementation, but also about changing people’s habits. It’s worth asking for professional help. Look for specialists who will be able to understand your company’s needs and specify the best path for your business. Investing in digital transformation projects is investing in the future of the company.
Get your teams prepared
Members of your teams have to be willing to cooperate. Actually, you, as their leader, have to make them willing and motivated. Thanks to smart technologies, it becomes possible to reduce or even eliminate mundane, repetitive tasks. They drive employee engagement and facilitate cooperation. But smart technologies won’t be enough.
Motivated people and smart technologies connected together — this is the key to success. Do not surprise your staff with new technologies and innovations. Listen to what they have to say. Listen to their opinions and ideas. Explain difficult concepts to them. Give them some time to adapt. This is a crucial part of digital transformation.
Summary
Digital transformation can work wonders. It opens new avenues to success, new prospects of development and new opportunities. In other words, this is “a breath of fresh air” for businesses, and it turns out that making changes is not that difficult. The thing is to focus on what you can do that you couldn’t do before. The world is moving forward, and so are businesses.
