Technology Special: What is digital transformation?
We have uncovered the digital transformation journeys of many of the worlds largest corporations, but what exactly does digital transformation mean?
Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation.
It transcends traditional roles like sales, marketing, and customer service. Instead, digital transformation begins and ends with how you think about, and engage with, customers. As we move from paper to spreadsheets to smart applications for managing our business, we have the chance to reimagine how we do business — how we engage our customers — with digital technology on our side.
For small businesses just getting started, there’s no need to set up your business processes and transform them later. You can future-proof your organization from the word go. Building a 21st-century business on stickies and handwritten ledgers just aren’t sustainable. Thinking, planning and building digitally sets you up to be agile, flexible, and ready to grow.
Digital transformation can involve many different technologies but the hottest topics right now are cloud computing, the Internet of Things, big data, and artificial intelligence.
But it's not just about the technology: changing business processes and corporate culture are just as vital to the success of these initiatives. Digital transformation projects are often a way for large and established organisations to compete with nimbler, digital-only rivals. These projects tend to be large in scope and ambition, but are not without risks.
Why is it so important?
New technologies such as machine learning, augmented reality, data analytics, and cloud computing are not just interesting and valid - they tend to lower operational costs.
Another benefit to digital transformation - yet one that is also critically important - is that customers will often notice when a company embraces such changes. Being dynamic can be a signpost for customers that a company is moving forward, embracing new technology, and even that they are looking out for customers by making communication and innovation easier.
Due to the current situation, many companies are embracing the idea of digital business, many companies are currently going through a major digital transformation, technology will never go back to how it was before.
Watch us explain what digital transformation is, here.