As a business grows and evolves, so too must the technology that supports it – it is this principle that underpins the entire concept of ‘Digital Transformation’ and the reason why so many businesses are scrambling to review their existing systems and begin the transformation process.
In many cases, businesses are already aware of the limitations their existing technology has from an operational perspective, and for a variety of reasons, delay making any meaningful upgrades or alterations until their hand is forced. Sometimes this is due to cost or confusion, but often it stems from a desire not to change solutions their teams are already comfortable with.
Whatever the reason may be, it is certainly unproductive. As organisations continue to compete for new business, even the smallest of technical changes can make a noticeable difference, either in terms of productivity or performance – both of which are vital ingredients for growth.
So, whilst the importance of Digital Transformation is quite rightly impressed upon businesses, there is still a lot of uncertainty surrounding the term’s definition and what it entails. In this blog, we will shed more light on the process, offering examples to help businesses better understand the associated benefits.
What is Digital Transformation?
Digital Transformation is the integration of digital technology into all areas of a business, fundamentally changing how they operate and deliver value to customers. Effective Digital Transformation relies upon a concerted cultural shift, as employees must be prepared to challenge their current ways of working and experiment with new approaches.
Through a careful analysis of existing processes, products, operations and technology, businesses can gain a better understanding of their existing landscape and how it all fits together, identifying which areas would benefit from modernisation to enable long-term innovation.
Given that businesses are expected to operate seamlessly, both in the workplace and remotely, with constant access to all the necessary information and data, the Digital Transformation process allows organisations to meet these expectations and continue delivering a first-class service to customers who demand as much.
Of course, the scope of each Digital Transformation project will differ from business to business as there is no ‘one size fits all’ approach when it comes to a successful delivery. For some, it may be a single focused technology project, whilst others require something much more comprehensive that stretches across the entire organisation.
Whatever the specifics of a project may be, the end goal remains the same – to improve the operational efficiency of an organisation whilst ensuring it has the tools and technology needed to continue delivering a high level of service. In turn, these improvements will drastically improve the user experience for those working in a business, making their daily tasks much easier to complete.
Trends, examples and benefits of Digital Transformation
With so many new and exciting technical solutions having recently entered the market, there is a widespread acceptance amongst businesses that they must keep up with the latest developments to avoid falling behind. Two of the most relevant examples of this would be the utilisation of big data and artificial intelligence, both of which have become increasingly popular since their mainstream adoption.
This trend is supported by statistics too, as Gartner recently reported that 37% of companies have implemented AI in some form, translating to a 270% increase in the last four years. It’s a Digital Transformation trend that shows no signs of slowing either, as 31% of organisations have expressed a desire to increase the share of AI in their business.
It’s important to remember that whilst the acceleration of Digital Transformation will naturally involve some form of financial investment to accomplish, this is nearly always balanced out by an optimisation of long-term operating costs. Businesses are not simply purchasing enhanced productivity; they are in fact saving themselves money by addressing any inefficiencies that exist.
Whilst pretty much any technology can play a role in an organisation’s Digital Transformation strategy, there are certain technologies that are most closely associated with such initiatives. These include:
- Cloud computing: This enables organisations to use the latest IT technologies, boost efficiency and scale with demand while managing costs.
- Mobile technology: Customers insist on doing more business through mobile apps – a key drive in its rising popularity.
- Internet of Things (IoT): This is the universe of devices equipped with censors that collect and transmit data over the internet.
- AI and machine learning: This enables a computer or machine to mimic the capabilities of the human mind.
- Automation: This involves the automation of repetitive tasks such as bookkeeping, sending invoices or archiving records.
- Digitisation: This involves the conversion of paper-based information into digital data.
Of course, most Digital Transformation projects will combine various aspects as part of a larger company-wide enhancement, the scope of which will depend on your current priorities and appetite for technical change.
Consult a team of technical specialists for advice…
Whilst the sentiment of this blog will resonate with a lot of readers, there will understandably be some that are hesitant to begin the Digital Transformation process, as they continue to weigh up the potential benefits alongside the expenditure of vital resources.
However, there are a wide range of approaches that can and should be utilised to ensure the transformation is gradual and sustainable – it needn’t be an expensive and sudden shift that causes operational disruption to achieve the long-term objectives set out in the beginning.
Rather than an overhaul, think of Digital Transformation as evolution. When executed professionally, it is an effective way to guarantee your business is being proactive in its efforts to innovate, whilst improving customer satisfaction and loyalty as people value the improvements made.
If you are considering a Digital Transformation project but are unsure on where to begin, then contact our in-house team of specialists to arrange a consultation.