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Why Business should go for Digital Transformation?

Ajay Kumar By Ajay Kumar | July 1, 2020

Gone are the days when businesses depended upon the traditional methods to have a successful run in the industry. Now, the advent of digital transformation has made businesses work efficiently with automation to collaborate and communicate.

However, the major question that is sticking up with business is “why business should go for digital transformations”. Let us give you a detailed answer to it.

With the sophisticated transformation working around the clock for businesses, it is possible to work smartly. It is an era of improvement for the tolls, processes, and above all users. Businesses are now gearing up with digital transformation to reach their maximum potential and embark on the new level of success.

Some remarkable and game-changing facts about Digital Transformation are listed below that will make you jump for it.

digital transformation fact & figures

These figures can give a better insight into the world of Digital Transformation that businesses are embracing slowly but steadily. However, it is essential for companies to work on the strategies and ensure that they can reach the highest level of commercial success.

The consumers now depend upon the digital devices and channels to reach out to their potential customers to establish a long-lasting relationship. This has also added a new concept of remote working from home.

In this article, we will cover all the aspects of Digital Transformation from its definition to businesses using it, from the strategies to its digital impact.

So, buckle up, be ready with a hot cup of coffee to begin your digital journey to know the reason to choose digital transformation.

What is Digital Transformation?

Digital transformation is also known as DX or DT creates differences in the business world with the help of technology to grow in the market. It can work differently for the variety of domains that are ruling the heart of customers.

Some take it as the realignment of technology that can simplify the processes and business models to enhance value to customers. While others believe it as a change in the technical world that is impacting the lives of customers.

Everyone has their own version of Digital Transformation that is impacting each and every user. In the traditional world, we used to depend upon paperwork and documenting each and everything. However, with the evolution comes the spreadsheet and now we are using cloud-based software, AI, IoT, and whatnot.

Read More – Impact of IoT on Mobile App Development

In simple words, Digital Transformation is a process in which business models use digital transformation technologies for their tasks and process. It transforms the business and takes care of all the complex processes converting information into useful data. Now, why digital transformation is important remains a major concern. So, let us dive into history and know its hidden fundamentals. 

pros cons of digital transformation

Sneak Peek into the History of Digital Transformation

Now that we know what Digital Transformation is, let us understand its history and how it comes into play. It all started in the 1940s when the first glimpse of DX comes into play. However, the actual glimpse of DX comes around in the 1990s and 2000s when the influence all started to set in.

With the involvement of smart devices and social media that is shifting the business world at an amazing rate. It is influencing the multi-channel availability and response time to the customers. And then comes the online payment system, web-based systems, online commerce, and so on.

The motive of this Digital Transformation is the personalization of customer data that is used on a massive scale. Mobile apps are a plus point that has increased the opportunities in the market for the business world.

The advancement in the Digital Transformation has managed to enhance the product demand, better customer communication, and tailored proceeds as per the requirement of time. It is a global change for the business that is increasing in terms of landscape and growing market. 

Read More – How Financial Apps Simplify businesses

Is Digital Transformation similar to Digitalization or Digitization?

Often people get confused with the major terms that include Digital Transformation, Digitization, and Digitalization. The fact is that the three terms are different from each other and hold a deeper meaning in their own way. 

  • When the information is converted from analog to digital then it is known as Digitization. It converts the physical document and makes a digital file of it. 
  • Digitalization works differently since it makes processes efficient and simple with the help of Digitization. This has increased the use of digitalization in the present world and has made it even more important in the business market.
  • Then comes the key factor in the form of Digital Transformation that alters customer interaction, internal systems, and everything in between. The fact is to understand the technology potential for the business world. 

Why Business should go for Digital Transformations?

If you think that you still have a choice to embrace technology then you are wrong, it is now a necessity. Digital Transformation is now the fundamental requirement of business that is widening up the operative initiatives.

Due to a higher expectation, more connected devices, business advancement, etc. it is becoming essential to embrace the Digital Transformation for a permanent change. However, what is your reason to choose digital transformation? Let us give you a list of reasons that will make you run for it.

#1 Boosting employee’s efficiency

The key factor for any of the business world is the best employee productivity that can be easily achieved with the right technology. Workforce engagement plays a pivotal role when it comes to the efficiency of employees.

The fact is the core business functions are covered easily in the Digital transformation that can evolve the industries. We are now slowly moving away from manual tasks and processes while using automation for better business operations.

These technology trends have managed to enable remote working with the tint of innovation. Through these, it is easy to access on-demand services and technology enabling employees to deliver the best in the market.

This Digital transformation has also managed to optimize employees’ pressure to offer great performance, customer-level experience, and top-notch security that helps in reaching a milestone for the IT department and avoiding risks.

#2 Ensuring security in business

Data theft is the most common challenge that is faced during Digital transformation. However, placing data around the network edge in a secure manner is something that one must know about. This is not as easy as we believe it to be since it includes a number of rigorous enforcement, complicated tasks, shielding from hacks, and data compliance.

However, the best security measures are of no use if the underperforming network is maintained making employees go for faster and flexible speed options. The business needs to work on the security strategies that can help them work consistently on any platform.

Hence, the owners need to hire the right technology and business partners in order to move towards digital transformation. This will help them to broaden the digital transformation objectives of their business and work transparently towards business goals. 

#3 On-demand expectation

Users believe that they will get the same benefits of digital transformation technology in their work as they achieve it outside. It can be a bit challenging for them but with the right partners, it will be the cakewalk. However, selecting the right partner as per the demand is a thoughtful process.

The demand is increasing every day for the business world and users are experiencing a drastic change. This has managed to increase the agile networking capabilities and hybrid IT services that is a critical part for owners.

As a result, it is not just the experience of the employees but is beyond it as it is a part of the IT tools and teams. It helps in maintaining security with operational disciplines and performance as the priority of the business world.

#4 Business partnership strengthening

There is a throat-cutting competition in the present world and even the demand of users has gone higher. As a result, companies are taking each other’s help as the sub-contractors, suppliers, distributors, and even consultants for the plethora of services surrounding us.

However, it often requires proper documentation that is now becoming efficient with automated software and spreadsheet. It was extremely tedious when it was about pen and paper but now it is just a matter of a few minutes and is redesigned with the digital transformation technologies.

It is also possible to have accurate, timely, and transparent workflow to increase the efficiency of the workforce. The digital transformation has managed to decrease tedious tasks, help employees, and make them productive. 

#5 Faster & better decisions

As we have already seen the actual impact of big data on mobile app development, we can conclude that analysis and data placement holds a lot of value in the whole process of digital transformation. It allows businesses to understand what they can adopt and what will be its end result.

In the present time, a great volume of data is accessed especially with technology like the Internet of Things (IoT). From the data, the right insights that are beneficial for businesses are extracted with the analytical tool to make effective decisions.

Read More – IoT Market Trends

The business operations use the analytical tools for deeper research, effect, and integration. Even the role of chatbots in enterprises is remarkably integrated with Big Data trends. The potential of both digital transformation technologies helps in offering modernized existing data to work towards progression in the business. 

chatbots impacting digital transformation

#6 Hire better talent

If you believe that you can invest billions of dollars in topnotch technologies and get the best results then you are wrong. You need to hire the right talent in order to manage the technologies that can then increase your overall performance.

The talented employees can easily work around digital transformation technologies to leverage from it to the best of their capabilities. For instance, expert data scientists can easily analyze the data and give accurate insights from it.

Whereas in terms of social experts, the data can be used to understand customer’s requirements in the vibrant world. It is to define the digital natives and then come up in the market in a smarter and better way. 

#7 Enhance customer experience

One of the most essential things for any business owner is to take care of their customers. This is not as easy as you might feel since it will include offering transparency to establish trust. In addition to this, automation has made it easier for retaining customers as well since it can be done easily in a quick and seamless manner. 

Get Major Understanding of Digital Transformation

Now you might understand that it is impossible for companies to ignore the fact that digital transformation is a necessity of the present time. Be it for remote working, smart devices, Internet of Things, etc. now is the time to get into the world of automation.

Now let us give you a brief about the stats and other major terms used in the world of digital transformation. You can get a detailed understanding of “why business should go for digital transformations”

Stats on Digital Transformation to understand its spending

As per the IDC Worldwide Semiannual Guide on Digital Transformation, the total spending on digital transformation technologies by the end of 2022 will reach around $1.97 trillion. However, if we see the present situations and advancement then it can be doubled crossing $2.1 trillion.

In the coming few years, annual growth can be more than 16.7% using strategies and digital predictions. The investors now understand the importance of digital transformation in business and hence are funding it with open arms.

The major motive behind digital transformation is a long-term investment that is working as a driving force in the industries.

As per the World Economic Forum as well, it is suggested that by 2025, the value of digital transformation will cross $100 trillion in total. The digital transformation has managed to work around all the roadblocks, resistance, confusion, and delusion to thrive in the market.

Digital Transformation Drivers

When it comes to digital transformation then you need to understand the driving factors behind it since it is a critical aspect of the present business world. However, it has completely converted the traditional working process into automated making it more efficient.

The fact is that IT experts understand that companies can invest in a plethora of digital transformation technologies that are game-changer in the present world. If we go on the budget then more than 72% of the total amount is invested in the technology to promote innovation.

There are so many digital transformation examples in front of us around technological advancement such as Uber in the transportation sector. It is an on-demand service that is enhancing the business flow and giving audiences a chance to grow.

So, the feeling to rethink each and every step is extremely common in the business world for the best delivery and topnotch efficiency. Let us give you an insight into its framework mode to help you understand it in a better way to know the importance of digital transformation in business.

digital transformation framework

Digital Transformation Strategy

To understand the strategies you need to be aware of the stages of digital transformation. Here is a brief overview of it.

stages of digital transformation

Now, we understand what digital transformation is and how it is influencing the business world. Now you need to understand how the companies are implementing it and bridging the gap between the business world and advancements. Here are a few pointers to help you out. 

  1. Ideate – You need to understand how digital transformation can be helpful for your company and where you can implement it. It offers value and help in understanding what will be the best as per the requirements. 
  2. Align Business goals – No one knows the business goals better than you. Hence, the best thing to do is to understand how digital transformation can help your business goals by taking you one step closer. 
  3. Document – Any technology that is used in the companies are documented to ensure that they have a record of it for future reference. A similar thing must be done for digital transformation to keep a track of any threat that is possessed in the future.
  4. Run testing – It is essential to run testing if we talk about digital transformation to see whether technology is ideal for your business goals or not. This works as an assurance for the business world on whether it is best for the employees or not. 
  5. Analyze the impact – Understand how the digital transformation is altering the business processes and its major impact in the industry. This is to roll out the actual meaning of digital transformation for automating sales and ensuring that business can run smoothly.
  6. Cultural change – There is no doubt that if digital transformation is included in the business world then there will be a difference in the terms of culture and environment as well. However, it is best to take these changes in a positive manner that can change the working for employees as well. 
  7. Revisit & revise – Change is a constant companion for any of the technical advancements. Hence, it is best to ensure that employees can embrace the changes and transform their businesses. 

Key Trends of Digital Transformation

The digital transformation is now embraced by companies as we have seen above. There are a number of factors that are affected due to this augmentation in the business world. However, there are a number of key trends that you need to keep in mind.

We have summed up some amazing key trends that are influencing the business world due to digital transformation. Let us walk you through some amazing trends that work as a good reason for “why business should go for digital transformations”

  • Increased acquisition activity, mergers, and digital partnerships.
  • Better use of Machine Learning, Deep Learning, Natural Language Processing, and Artificial Intelligence.
  • Enhancement in terms of success metric digital transformation
  • Expansion of the cloud adoption for public use

These are just a few of the major trends that are impacting the business world. Apart from this, there are a number of potential practices that one must be aware of. Let us list it a few down to help you with digital transformation.

  • The business model should be reimagined in a way to integrate digital transformation.
  • It is essential to understand the digital transformation examples to know which trend will be ideal as per your product.
  • Optimizing the model of business as per the digital transformation technologies that are in the trend.
  • Having a strategy story for the digital transformation in a distinct manner.
  • Integrating digital transformation in a way that can give a competitive advantage to businesses.

These are just the key points of the business interaction that are offering meaningful customer engagement and experience with the top-notch innovation. It is no longer the choice for business due to the key factor in its future scope. Many companies have embraced it, some are transforming their business, and in the coming years, we will be able to witness more of it. 

What are the 4 main areas of Digital Transformation?

Still confused about “why business should go for digital transformations”, let us move a bit forward then.

There is no doubt that there are so many benefits of digital transformation in the market. It is time to explore them and know how to solve any complex process for multiple spheres. So, here are the major impacts that any companies have to face due to the digital transformation.

  1. Organizational – It is essential for companies to hire an employee that understands digital transformation to get accurate results. A strong leader can easily tackle any issues or errors in the transformation. Many companies even hire the consulting agency for the steady transformation or mobile app development company to start with the development work.

    The reason behind it is that outsourcing is easy to tackle as compared to the in-house team that might not be that capable to manage it all. The providers help in setting up the process easily with on-site help.
  2. Financial – The operation cost is a major concern that many companies face. This is easily covered up with the help of digital transformation in the long-run. It is a one-time investment mainly with occasional maintenance charges that will easily optimize the total cost of operation. One can also integrate the SaaS product, hosting and cloud storage, analysis, new hires, and cloud migration costs in the digital transformation.
  3. Cultural – In the cultural aspect, as mentioned above, the agile and customer-centric flow is maintained in the business. This paradigm shift is for the corporate culture and paradigm shift in the industrial world.
  4. Operational – The agile processes are the backbone of the digital transformation world. It helps in optimizing the tasks and internal processes for businesses to streamline the workflow. In addition to this, it adopts new responsibilities through which businesses can grow and reach to a whole new level.

These are the major importance of digital transformation in business that is changing the way employees work. 

Sectors that have successfully embraced Digital Transformation

There are a number of sectors that are taking leverage of the digital transformation at a greater scale building their model around the strengths of advancements. To give you a glimpse, here are some of them that can be integrated with the digital transformation strategy.

  1. Healthcare – Over the years, the healthcare sector has seen a drastic change due to digital transformation. It is the field long history of the analogs for more than 5000 years. With the digital transformation, it is easier to have telemedicine, digital records, AI-powered diagnostics equipment, and patient tracking systems. As a result, this has come up as a revolution to the present world of digital advancements. 
  2. Banking – In the internet era, the digital revolution has taken a new turn in the banking sectors. The digital banking has come up as the fundamental for the customers that are altering the relationship between them and banks. In addition to this, it is opening up more opportunities with data collection and analysis while lowering up the cost. 
  3. Telecom – Another major impact of digital transformation is seen in the telecommunication industry. It is expected that in the coming years, the telecom world will see a drastic change with PSTN (copper analog) legacy or ongoing global phase-out. 

These are just a few industries that are facing a lot of changes. The giants are also embracing the digital transformation and altering the demand of the users.

giants adopting digital transformation

Big Picture – Opening Doors to Globalization

There are a number of instances that have come up as a revolution in the business world. The digital transformation enhances innovations in the business world helping customers with big data, smart devices, and so on.

It is building a competitive advantage for the business and allowing owners to thrive in their domains. The world is changing and hence it is the right time for us to embrace it as well. So yes, businesses are embracing digital transformation to push their company to new heights. 

Ajay Kumar
Ajay Kumar

A young entrepreneurial technocrat who is the Co-Founder & CEO at Appventurez Mobitech. After completion of his masters in Computer Application, he dived into the world of technology as an iOS developer. As a CEO, he firmly believes teamwork and collaboration are the essential tools for any company’s success.

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