Digital transformation means not only a move from analog to digital instruments but also restructuring the ways a company should work.
Digital transformation in business has become essential to remain competitive in today’s ever-changing technological landscape. In recent years, a rapid transition has been witnessed in the business world. Many companies are choosing to adopt new technologies to improve their day-to-day operations.
According to the reports, approx $ 6.8 trillion is projected to be invested in digital transformation by 2023. However, digital transformation in business is not just capital investment, but also developing strategies, and addressing opportunities and challenges that come with it. Experience and skills that are related to digital transformation are now necessary for the strategic plan of almost all companies.
In the present time, companies must be attentive to the changing landscape of their industry. Digital transformation of business gives an edge to meet the growing demands of the market as well as ensure great customer satisfaction. Read further into why businesses should opt for digital transformation in business and what strategies to follow to implement it.
Table of Contents:
- What is Digital Transformation in Business?
- Types of Digital Transformation in Business
- Why Digital Transformation is Important?
- Digital Elements to Transform Your Conventional Business
- What Businesses Strategies Can Lead to Digital Transformation?
- Some Successful Examples of Digital Transformation in Businesses
- How Digital Transformation is Driving Customer Experience?
- How Appventurez can Help Your Businesses in Digital Transformation?
What is Digital Transformation in Business?
Digital transformation is the process of embedding innovative technologies into all aspects of businesses, from daily operations to strategic decision-making. Digital transformation solutions mean not only a move from analog to digital instruments but also a rethinking of the ways a company should work.
Digital transformation in businesses brings changes to the traditional model of the enterprise. It also cultivates a digital culture and upskills people in the company as it takes a team to work through a transformation. As per the reports, spending on digital transformation technologies and services is projected to reach $2.8 trillion by 2025.
Three key areas of digital transformation in businesses are:
It entails working to understand the customer requirements in more detail. Corporations can bring transformation by using technology to fuel customer growth and create more customer touchpoints.
It means corporate digital transformation by augmenting physical offerings with digital tools and services. It also includes introducing digital products and using technology to provide global shared services.
Bringing improvement to internal processes by leveraging digitization and automation. Digitizing operational processes also means collecting data to monitor performance and make more strategic business decisions.
Types of Digital Transformation in Business
Economic downturns, changing industry conditions, and the desire to become more efficient may push the company to embark on a digital transformation lifecycle. However, any form of change to the employees’ processes may be difficult to implement, so the leaders should make the transition as smooth as possible. In addition, an enterprise may merge more than one type of digital transformation to make it as effective as possible.
Take a look at four different digital transformation methods and why opting for the right one is crucial for success.
Digital Transformation in Business Process
It focuses on the business’s processes such as analytics, Artificial Intelligence, data analytics, or any process that can lead toward lowering costs and increasing operational efficiency. Potential results of this transformation include simplifying or removing steps, minimizing keying errors, and improving reporting of the enterprise.
This form of transformation offers a great opportunity to move into a new domain or an area that the business may not have explored. Some of the potential reasons to opt for domain transformation include competitors or the introduction of new technologies which makes it difficult to continue a current business plan.
Business Model Transformation
This means making fundamental changes in how an organization or business runs. In this situation, an enterprise is attempting to revamp part of its business by digitizing a service or a product that was previously delivered through another means. Important considerations under this transformation include hiring new employees with new skill sets.
Digital Transformation in Business Culture
In this business digital transformation, culture, or the organizational structure of the company is significantly impacted. It is sometimes difficult to implement as it can require major changes for the employees. An organization may go through this transformation if the company was acquired or has experienced a change in leadership.
Why Digital Transformation is Important?
According to the latest reports, the value of digital transformation for society and industry could reach $100 trillion by 2025. The data and the emerging trends have made the digital transformation of business inevitable. One of the examples is the rising trend of mobile apps in enterprises as part of digital transformation. But what are the factors that make digital transformation so important for businesses globally:
Increase in Data-Based Insights
Going digital allows enterprises the tracking and analysis of their businesses. With the use of data-driven insights, they can understand customers and also rethink business strategies. It would further lead to better decision-making and a higher ROI (Return on Investment).
Transformation in customer experience
At the heart of the company’s digital transformation process is the customer experience. As a result, 92% of the company leaders have been creating advanced digital transformation strategies for improving the customer experience.
Improving collaboration across departments
Digital transformation in business creates an excellent opportunity for unity and collaboration across the organization by building it on the digital accord. The transition will be seamless and smooth when everyone is aligned to a common purpose.
Digital transformation enables businesses to gain a competitive advantage in the market by creating new products and services. It helps in expanding into new markets and improving customer understanding and service. Digital transformation also helps companies in generating new revenue streams.
Digital Elements to Transform Your Conventional Business
It is undeniable that all companies want to experience a great impact and change in their businesses. However, breaking from the conventional model of business to a digital one will require new strategies. Forming an effective digital transformation strategy will require expertise and precision along with continuing with the core idea of the business. Know what are some of the digital elements that will help transform your conventional business:
Artificial Intelligence and Data Analytics
As business owners shift their line of thinking and technologies, a lot of opportunities and possibilities emerge. Introducing data analytics and artificial intelligence in business will facilitate the digital transformation of the company. The tools will help the enterprise in connecting with the increasing needs of the consumers while also staying ahead of the competition.
Blockchain & DLTs
For businesses, blockchain provides transactional transparency and has gained momentum in recent years. While DLT allows new transactions to be added to an existing chain of transactions through a secure digital signature. The most appealing feature of blockchain technology is that the transactions can be conducted without the involvement of third parties. Blockchain technology is used in different domains mainly to ensure the security of their functionalities.
Introducing mobile apps will drive your enterprise to the digital pathway without any hurdles. The mobile apps allow the employees as well as the consumers to connect to the core idea of the business. The use of a mobile app strategy helps businesses to stay in sync with their existing as well as potential customers.
To leverage the data gained through digitization, the organization must address the methods they use to consume and deliver information. Augmented Reality (AR) and Virtual Reality (VR) technologies offer unique capabilities to businesses with these requirements. Integrating AR and VR can enhance the user experience, transform the customer interaction model and support innovation to improve the way companies present their services and products.
For businesses to have a strong digital presence, web development is one of the key strategies. A robust and well-functioning website helps businesses in connecting with prospective consumers online while also maintaining a successful marketing strategy. To facilitate greater consumer engagement, the website must be accessible, easy to navigate, and with detailed information for the consumers.
What Businesses Strategies Can Lead to Digital Transformation?
Many companies have been opting for digital transformation as the advantages and the benefits of such a revolution are extremely promising. However, some enterprises may face difficulties in developing a strong hold on this transition of technology. Before proceeding further, it is important to understand the correct nature of strategies that will benefit the business and bring stability in this digital age.
Find some of the business strategies in digital transformation that will level up your company in this digital age:
Leveraging effective digital technologies
Companies should invest, leverage, and use digital transformation technology that is proven to be effective and efficient. It helps in bringing companies, brands, and businesses closer to people. Finding the right digital technology will pave the way to attract potential customers and clients who are willing to use the company’s new platform and improved digital technology.
Increase in the budget for research and development
To integrate the latest digital technologies, it is important to invest more in the research and development part of the business. Research and development enable the IT systems to be properly maximized and optimized. It is an excellent way to leverage your technology and business to a higher level.
Hiring competitive talents
To lead to digital transformation, the executives must embrace combining competitive skills and talents throughout the enterprise. In IT areas such as UX, data science, and development operations, the right competent talents are hard to scout out. Hiring the right people for the right jobs is an accurate digital business transformation strategy that will benefit in the longer run.
Improving cybersecurity of e-commerce systems
Security is often considered important, however, not taken as a priority. Given that the digital world is vast, and many viruses and cyber incidents are likely to happen, it cannot be ignored. This one strategy will ensure that all the data and information within the company are kept and secured properly. It will avoid a security breach that can disrupt a number of your business operations.
Some Successful Examples of Digital Transformation in Businesses
The goal of digital transformation in companies is to get closer to the customers, whether they are new to the brand or longtime loyalists. However, how much success the transition will bring depends on the company’s decision to utilize the latest techniques in its day-to-day operations. Check how some companies have approached the process with digital transformation ideas and how they have achieved the desired result.
Ikea is a multinational company that designs and sells ready-to-assemble furniture and home accessories. After running a conventional business for over 80 years, the company decided to undertake a digital transformation in 2018. The company decided to focus on developing its e-commerce, transform its stores and use them as fulfillment centers and enhance customer experience by connecting in-store and online interactions.
The key aspect of digital transformation in Netflix is a shift from acquiring content to producing content. Netflix, a former subscription-based DVD rental company, has provided a unique viewing experience for its customers. With digital transformation, the platform attracts new customers, retains the existing ones, and generates revenue through subscriptions and licensing.
Domino’s, a well-known pizza chain, started in the 1960s and transformed to become the first truly digital business. With the introduction of a pizza delivery app, the fast-food giant stepped up their game in the technical aspect. The success of Domino’s Pizza can also be attributed to its willingness to transform as per the customer requirements in the changing times. As per the reports, the worldwide revenue of Domino’s Pizza rose to around $4.54 billion dollars in 2022.
How Digital Transformation is Driving Customer Experience?
Embracing digital transformation involves a cultural shift in the company. Whether the companies are B2B or B2C focused, customer expectations rise as the technology evolves. The changing market also makes it significant for businesses to start putting the customer’s requirements first. According to the latest research, 35% of business executives claim that digital transformation helps them to meet customer expectations and improve operational efficiency. Let’s read further about how the introduction of digital transformation in business can positively impact the customer experience provided by businesses.
Making Business Information Available Online
While businesses used to save data locally, advances in storage and security have made it a common experience to use online methods. On the customer’s end, making information available online helps them find the answers they want in relation to the services and products of the businesses. It not only improves the digital customer experience but also frees up support agents’ time to help customers with more complex questions and issues.
Personalizing Customer Experiences
Many companies are now using customer data to provide more personalized experiences. On websites such as Amazon, there is a section on recommended products. Instead of merely featuring products that are popular with the shoppers the site shows custom lists that are tailored to each user’s browsing history.
Embracing Artificial Intelligence and Automation
Artificial Intelligence and automation have come a long way in the past few years, particularly in customer service. Both terms bring to mind the rudimentary chatbot that provided canned responses to basic questions. However, automation now refers to a range of things that are used to improve different parts of customer service and experience. It includes AI Chatbots, AI for Customer Service Agents, and workflow automation.
How Appventurez Can Help Your Businesses in Digital Transformation?
Digital transformation in business is a modification in the processes which is driven and pushed to happen. Businesses need digital transformation for many reasons, however, the primary factor is to provide satisfactory products and services to the customers.
In the technology-driven, it becomes essential for companies to update their day-to-day operations with the latest techniques. Appventurez, with its team of experienced professionals, can guide your business in adopting the latest digital transformation trends.
Tools such as AI chatbots, real-data analytics, along with cybersecurity allow companies in establishing a bond with their customers. The team at Appventurez will not only assist you in analyzing the nature of the business but also help in establishing an effective mobile app strategy to widen the customer base.
Q. What are the challenges of digital transformation?
Some of the common digital transformation in business challenges are a lack of organizational change management strategy, lack of expertise, internal resistance to change, and budget constraints, among others.
Q. What is the role of digital transformation in business?
Introducing digital transformation in business means putting technology at the core of the business strategy. The approach aims at reducing operating expenses and inefficiency.
Q. What are the three main components of digital transformation?
The three main components of digital transformation are customers, business partners, and employees.