As of 2018, 40 percent of technology spending goes into digital transformation.
Digital transformation is changing the way businesses operate and conduct transactions. What exactly is this movement that is currently taking the business world by storm?
Read on to learn the scoop.
What Is Digital Transformation?
In a broad sense, digital transformation refers to the implementation of digital technology into one or more areas of a business. As a result of digital transformation, most businesses change the way they operate and how they deliver services to their clients.
On top of changing the way they utilize technology, businesses also go through a cultural change. It forces the entire organization to get out of the comfort zone, change the way it operates, and even deal with failures.
Why Is Digital Transformation Important?
For most businesses, the implementation of digital transformation is a sink or swim situation.
Technology is the driving shift for most businesses. When they fail to evolve and adopt new technologies, their business can suffer or even fail.
If businesses want to continue moving forward, it’s essential they develop a new strategy in which technology is the center of the operation.
These are some of the best digital transformation books that can help you understand the importance.
Digital Transformation Areas
There are many different aspects of a business that can benefit from digital transformation. These include business activities, processes, asset management, organizational culture, ecosystems, and more.
Business Activities: This area of digital transformation deals with human resources, operations, marketing, customer service, and more.
Business Processes: In the are of business processes, the automation of certain operations and activities is necessary to achieve a specific goal.
Business Asset Management: Asset management treats customers and customer information as an asset.
Organizational Culture: If businesses want to ensure their different competencies make it across the board, digital transformation can help. This area covers culture, team collaboration, processes, and operational technologies.
Business Ecosystems: This area of the business includes the different ecosystems that make up the overall business. It refers to the partners, employees, stakeholders, and more.
With the help of digital transformation, businesses can create new ecosystems and bring them together as one.
Business Models: Business models refers to the way a business functions. It includes everything from revenue sources, the core of the business, and market approaches.
Examples of Digital Transformation
Some companies that have adopted digital transformation models include the grocery store chain Albertsons. Albertsons has developed personalized product deals for customers, one-touch gas payments, and even robots to move the products around the warehouse.
Food chains such as IHOP and TGI Fridays are also developing technology that can help customers with their mobile orders.
Importance of Digital Transformation: The Bottom Line
Now that you know all about the ways digital transformation impacts businesses, you will be more aware when implementing new business models.
Remember that digital transformation is necessary for businesses to continue to evolve, grow, and stay relevant.