What is Digital Transformation?
Digital transformation is the process of using specific digital tech and insights to transform and optimize a business process. Essentially, companies are introducing new digital services, platforms, and work process to become more efficient, competitive and to make profit. What are the core benefits of successful Digital transformation?
Cost reduction has always been the key difference between business survival and failure. Especially today. For example by using automated services, cloud services or AI, companies can dramatically cut cost in production and management.
Improve customer service
Providing better customer service is one of the most important parts of digital transformation. You need to listen to your customers and provide better and faster service with the help of new tech. Happy clients are loyal clients. This will have a positive effect on profits.
Data security is a major concern for any businesses. Most companies still use outdated or unprotected tech that can easily be hacked. Data breach or Ransomware attack can lead to massive financial loss or even bankruptcy.
Optimize your work processes
Every business has a specific process for each department, like management, marketing, production, resources, sales and so on. Digital transformation can help companies optimize these processes in a way that allows them to save money and increase profit.
By optimizing the work process, companies increase productivity. Using appropriate digital tech and insights helps companies drastically increase staff performance. If your staff spends less time on pointless repetitive tasks, they can focus on being more productive and in the end they will feel better.
Organizational agility is incredibly important in modern business. Digital technology enables businesses to become better connected and informed. This reduces time to react and deliver. With digital transformation, all data points can be easily accessed, measured and analyzed with the goal of improving company performance.
For these reasons alone, Digital transformation is a must-have. But if people lack the right mindset to change and the current organizational practices are flawed, DT will simply magnify those flaws. Five key lessons have helped us lead our organizations through digital transformations that succeeded.