Meaning and Purpose
Transformation is a complete change in form or nature of something, so that there is improvement in its performance. When a business unit adopts a process in which digital technologies are used to improve its existing business process or to design new methods, that process is called Digital Transformation. In order to gain competitive advantage over other business units, there is a dire necessity for innovative methods. All aspiring business units are in constant pursuit of them. Digital Transformation is one such method which is embraced by almost all businesses irrespective of their size, location, and type of industry.
The integration of real-time data and analytics is often an overlooked process in the entire digital transformation process. There are different studies on the significance of digital Transformation which clearly emphasize that the success rate of the attempts of digital transformation is very low.
History to Contemporary
Digital Transformation has its roots in the early Eighteenth century. Since then there has been persistent development from Transistors, early digital computers to the modern-day computing. The advent of World Wide Web has changed the entire face of technology and has taken it to a different world altogether..
These days, there is a lot of buzz about data. It is also called new gold, new oil etc. Such is the value given to data, and the organizations are busy to unleash the strategic value of data. While the importance of data is still not lost, people are talking about Real-time data. Real-time data is the most crucial player in this game of Digital Transformation. If an organization has real-time data, it will succeed in the seamless delivery of accurate and efficient services.
Transformation is not complete when it is confined to a particular side of the business. A comprehensive Transformation is that which includes both external and internal functions. Technology aids in achieving this transformation. One of the classic examples of Digital Transformation is Cloud Computing. In Cloud computing the dependence totally shifts from user-based hardware to subscription-based services. Digital Transformation helps companies to improve their revenue by enabling them to offer cloud services which can generate recurring income which can be used for other pivotal developmental activities. In cloud computing, another important benefit is the reduction of software piracy. So, the transformation not only benefits organizations in terms of business but also in putting efforts for innovative methods to take a leap over the traditional methods. The success of any Digital Transformation attempt depends on different metrics of data which are used to measure the elevation in the curve of performance of the business.
Digitization of information is actually the conversion of analog information into digital form. This process of digitization is not limited to a few sectors, and having understood the significance of digitization, all the sectors are embracing digital transformation.
Advantages to Business
Automation of Core Business Functions
In the highly competitive world where we are living, swift actions are more than essential for survival. Confining to age old practices will minimize our explosion to modern trends. So, there is urgency for the organizations to move away from error prone, time and effort consuming manual process to an agile and accurate system. The core business functions like HR, Finance and marketing can be automated by adopting Digital Transformation, which enable the company to orientate focus on business development.
Inter Departmental Understanding
Digital Transformation is a daunting task and needs a collaborative effort. A business is a collective unit of different departments and can only flourish when there is proper understanding among them. Generally, businesses suffer from the problems of miscommunication. Digital Transformation enables businesses to overcome the problem of miscommunication and design a roadmap for successful journey of business.
Change in Customer Experience
Today’s customer is very special and unpredictable. He looks for perfect solutions at the speed of light. Business leaders are busy in conducting an in-depth research of the behavioral patterns of the customer. They are coming up with innovative strategies and are resorting to the complete digitization of customer journey. Such digitization will bring agility into the system and will provide data driven insights to make a decision.
The world of technology is dynamic and challenging. Today’s latest technology will be obsolete tomorrow. So, there is a great challenge in front of the employees to update their skills to be compatible with the requirements of the market. Digital Transformation provides an opportunity to the employees to get engaged with the latest AI tools and other applications and also constructs a platform for them to leap into the territory of technological challenge.