The emergence of technological, innovative business solutions has created an evolve or die business environment.
Company’s hands are being forced more than ever before.
Changing with the times is important to retain relevance, and to remain competitive in a business world where new companies are built using revolutionary business models.
With newer, faster and ultimately better ways of doing things surfacing by the second, it’s difficult to achieve a level of productivity conducive to success without embracing digitalization.
Digital transformation has emerged as a hot topic within most business contexts, despite its inability to be clearly defined or understood.
It’s become a divisive concept, but one which is to be taken very seriously.
Modernizing business infrastructure is important, but digital transformation has shifted the focus onto customer and employee relationships, particularly how technology interacts with these elements.
We’ve just about scratched the surface addressing the question ‘what is digital transformation?’, but let’s devise an explanation from where we can expand on why it’s so important:
What is Digital Transformation?
A broad term which covers all aspects of technological integration.
Its application determines how businesses deliver value to customers from a digital perspective, which in today’s climate is highly significant.
It looks at how digital software is incorporated across all aspects of the organization, in ways which shift the cultural values and everyday operations of the company in question.
It aligns with change management in the way it forces individuals to constantly challenge organizational norms, grow comfortable with failure and be willing to experiment to reach an optimal solution.
Though this baseline definition explains a few things, you might still be left wondering what is digital transformation exactly, i.e what does it actually translate to in a practical, real-life setting?
Well, unfortunately the broad definition given above is a microcosm of how digital transformation is perceived across the globe.
It’s become such a broad buzzword it’s occasionally considered unhelpful.
Whether you love the term or not it certainly continues to cement its place in ever-evolving digital markets.
Restructuring old business models and cultivating agile responses to evolving customer expectations is certainly a mainstay.
As long as these are important digital transformation will have a firm role in modern business.
But this article will offer some clarity around the subject as we progress to why digital transformation is important.
We might have touched on this already but there’s so much more to explore.
Technology plays a more critical role than ever before, and its place in the business world will be more firmly established with time.
It’s not uncommon to feel stuck when digital transformations are taking place, where change is difficult and is often met with resistance.
It’s important to embrace digital transformation at the core of your business and understand it’s an evolving concept.
Digital adoption won’t happen overnight. They’ll be many obstacles along the way but patience is a virtue.
Overcoming the difficulties which arise is part of what will strengthen your company’s ability to be resolvent and resilient, two characteristics essential for adaptation and development.
Hopefully this just about covers the question ‘what is digital transformation’, though it’s important to appreciate the significance of learning as you go along.
In reality you’ll learn much more about the concept as it’s practically leveraged in real business contexts.
Beyond what we’ve already touched on, let’s further assess why digital transformation is so important:
4 Reasons Why Digital Transformation is Essential
Here are some great motivations for embracing digital transformation:
Improve Marketing Efforts
Modern society expects businesses to innovate in order to provide solutions to modern problems.
When companies can highlight efforts to appease the modern consumer they can market products/services more effectively.
Digital transformation is a fantastic vehicle for this, where consumers can be reached more effectively while companies highlight their technological aspirations.
Customers expect businesses to invest in innovation, so when efforts to do so are advertised customer expectations are more likely to be met.
Examples of digital innovation can be presented to customers for reassurance, to an audience that’s more likely to engage if they perceive the company as digitally aware.
Digital transformation is a fantastic way to improve marketing efforts by highlighting the modern innovation which will generate value for customers.
Meeting Customer Expectations
Consumer expectations are forever growing in a world that’s driven by technology.
Though the customer has always been right, their satisfaction has never been more valuable in a business world that’s driven by feedback and positive word of mouth.
In order to meet evolving customer expectations companies must be digitally aware.
If a customer can reach a digital solution with a new company, one they can’t with yours, then who do you think they’ll pick and what do you think they’ll have to say about the way you do business?
By engaging in customer-facing digital transformations your reach will grow significantly as you please more customers.
The information you share becomes richer and you’re considerably more likely to meet customer demands.
This will ultimately translate to increased profit and revenue as you boost customization and interaction, becoming more in touch with your clientele.
Getting close to your customer is highly valuable, and to boost your market-share you must be technology-oriented.
Say Goodbye to Resource Constraints
Traditionally companies were confined by their access to resources.
This led to smaller scale companies struggling to compete with the powerhouses who had a greater scale of efficiency and ultimately bigger infrastructure.
Resource constraints would heavily influence a company’s impact, but with today’s cloud-based solutions this is no longer a concern.
This reduces a company’s capital expenditure, a liability which once hampered productivity.
The upfront cost model is less relevant today, allowing small companies to benefit from their transformative efforts by using a more suitable pay-as-you-go model.
Digital adoption eliminates the need to maintain a server or buy hardware, especially when relevant parties can simply lease devices at their leisure.
Consequently businesses can save money because they can pay just for what they need and never in excess.
This eliminates the threat of underutilization as part of a fluid billing process which suits the evolving nature of business needs.
It Facilitates Change Management
Though perhaps a fairly obvious one, it’s important to acknowledge the role digital transformation plays in change management, and vice versa.
Change is an inevitability in the business world, and it’s impossible to change at a pace necessary to remain competitive unless you digitally transform.
With new digital solutions you’ll accelerate change considerably, but this change must be managed for digital implementations to be successful.
Change management principles increase in value in a world that’s constantly transforming.
With an appreciation for change management companies are much better positioned to introduce change at a pace that works well for staff, while accommodating their needs accordingly.
Change management and digital transformation go hand in hand, meaning if you embrace both philosophies as part of an interconnected set up you’ll be onto a winner.