What Is Digital Transformation?
Digital transformation is the radical reconfiguration of the way a business or organization conducts business. It involves integrating digital technology into all facets of business, fundamentally changing how they operate. It directly transforms all operations and organizational activities, processes, competencies, and models.
With digital transformation, the organization undergoes a cultural transformation. It requires organizations to continually challenge the status quo, innovate, experiment, and to always be ready to reinvent itself. This means having to walk away from time-tested business processes in favor of new practices.
What Drives Transformation?
Three key factors drive transformation: changing consumer demand, changing technology, and changing competition. As an ecosystem, one factor affects change in another. A combination of these factors will bring about a drastic change to the market.
Within the lifespan of a business, at some juncture, it reaches a tipping point when the operating model no longer fits the mold and thus, is unable to cater to the demands of the market. Then it becomes an issue of survival. A transformation is necessary because they failed to evolve. At this point, change will be expensive because they did not anticipate the needs of the market.
But for smart businesses, there is no tipping point. Change becomes something that happens as a consequence of the times – a natural evolution. As they spot these changes, they also see opportunities before they become tipping points, and adapt to these changes.
The market will always be driven by its customers. Being continually focused on customers allows the business to spot opportunities before they become tipping points. It is then that you can change and adapt, or you can even excel and lead the pack.
How Digital Transformation Transforms Your Organization
1. It transforms the customer experience. People will always want valuable solutions to their problems. Digital aims to provide a solution using cutting-edge technology and will improve the customer experience.
2. It drives data based on insights. Perhaps the biggest benefit of going digital is the ability to gather data and track metrics. The data obtained can be used to further optimize strategies to improve results even further.
3. It encourages collaboration. Digital transformation presents an opportunity to unify the workforce through strong communication and greater accountability.
4. It increases agility and drives innovation. In business, many industries have the ability to improve and innovate quickly due to the rapidly-changing nature of the market.
5. It updates skill sets and knowledge. Through digital transformation, employees are able to develop skills the software development company needs to sustain growth and gain a competitive edge in today’s digital age.
6. It fosters a digital culture. For a business to succeed in providing software development services in today’s digital landscape, it’s not enough to have the technology. Digital transformation impacts leaders, driving a lasting change in the organization.
7. It consolidates processes and operations. Digital transformation enables the business to bring their entire organization together, including its social media efforts, analytics, project management, business processes, and even their entire workforce. This enables the business to consolidate their efforts and better connect with their audience and satisfy their needs.
