Digital Business Transformation- Definition, Examples, and More
Modern companies are continuously trying to find ways to improve their internal systems and business strategies.
This can be challenging for organizations that still utilize manual processes, as they consume more time, resources, and money. They are also limited when it comes to generating insights and sharing impactful data.
However, by orchestrating a digital business transformation, companies can significantly improve their operations using digital systems, such as management software. This gives businesses the ability to streamline standard tasks and gain insight into valuable metrics.
What is a Digital Transformation for Businesses?
A digital transformation includes using digital technologies to streamline a procedure, making it more efficient or impactful. Implementing technology should not simply mimic a process, but it should also make it significantly more effective. By modifying practices, organizations can improve their marketing, customer service, inventory, and other management strategies.
Businesses most commonly undergo digital transformations by adopting the newest business intelligence technologies, such as cloud-computing software, machine learning, and artificial intelligence. This enables companies to better understand their internal processes, clientele, and overall performance through detailed reports.
While digital transformation is often used in the IT industry, it entails more than just the newest technology. In order for a business to experience a complete digital transformation, they need to make significant changes to their work environment and culture.
Organizations replacing their outdated practices with more efficient processes must ready their staff and facility for an increase in productivity. Employees need to be trained on how to orchestrate the new systems, and the building must be prepared to experience more activity.
For example, if a distribution center implemented a new inventory and ordering management software, they need to teach employees how to navigate through the system to view orders. The warehouse also has to be rearranged to ensure workers have access to all inventory and packaging supplies to improve the order fulfillment process.
Commonly Used Digital Technologies
The most successful businesses are able to harness the power of the newest technologies to improve their performance and profitability. However, for this to happen, owners need to know what tools have the capabilities to enhance operational efficiency.
The four most commonly used business technologies include-
- Analytical Tools
By accessing large volumes of data sets from both internal and external processes, companies can gain a well-rounded perspective of their performance and market.
- Mobile Applications
Companies that already have an established online store can have developers program a mobile-friendly version, allowing customers to view their site via portable devices.
- Digital Platforms
With enhanced data sharing capabilities, companies can build digital libraries to gather and consolidate valuable information and resources.
- Social Media
Management can also connect directly with their customers via social media to answer questions, address concerns, and monitor reviews. These are great tools to track market trends, customer advocacy, and competitors' performance.
Digital Transformation Areas
There are several areas within a business that management can digitally transform, including-
- Business Functions such as marketing, human resources, and administrative work can be streamlined with modern management software.
- Business Processes can be connected to streamline standard tasks and work towards a collective goal. Many companies utilize automation to optimize business process management and operational efficiency. For example, inventory and point-of-sale (POS) systems can be linked to provide the most accurate stock levels by incorporating data from every transaction and purchase order.
- Business Models constantly evolve to complement market trends and customer demand. By implementing digital technologies, companies can adapt their internal processes in customer approaches to capitalize on fluctuating trends.
- Business Ecosystems consist of multiple networks of stakeholders, employees, and clients, creating a complex system of partners. Undergoing a digital transformation enables all parties to join an open dialogue, including sharing actionable insights, metrics, and concerns. This strengthens partnerships by promoting transparency and trust.
- Business Asset Management is no longer limited to traditional assets, such as property and other objects with monetary value. Modern businesses recognize the value of business data, such as customer information, key performance indicators (KPIs), and insights. Information has the power to improve a business's performance, profitability, and customer reach, making it as valuable as other tangible assets.
- Work Culture should be centralized around creating the best customer experience while improving efficiency to remain profitable. By implementing advanced modern technologies, management can establish business goals to develop a universal mindset in the workplace. This ensures all employees are on the same page and working towards the same objective.
- Partnerships require collaboration in order to succeed. A digital transformation enhances a company's ability to communicate and build strong relationships with stakeholders and third-party organizations. By establishing a healthy working environment and common ground, all parties can benefit from entering a business agreement.
- Customer/Employee Approaches should be prioritized above technology, as people are a company's biggest asset. As customer demand changes, businesses need to be able to adapt their interaction strategies to capitalize on the newest trends. This includes improving customer experience, support, and shopping journey.
Likewise, employees should feel empowered and safe in the workplace. Through training sessions, management can teach workers how to optimize productivity, handle customer interactions, and access resources.