There is no doubt world has become more digital than ever before. Almost every industry is inclining towards the digital transformation in order to give fierce competition to its competitors. Digital Transformation has become the slang for many industries that want to remain in competition in the market. Before going deeper into the concept of digital transformation, let’s first understand the team: What is digital transformation?
“Digital Transformation is a process of integrating the digital technology in all aspects of the business, achieving it by changing or modifying the existing patterns of business processes, customer experiences, and company’s culture.”
According to the IDG 2018 Digital Transformation Report, almost 89% of the organizations have adopted or plans to take a digital transformation policy.
About 32% of the business owners and IT decision-makers say that digital transformation has already helped their business achieve revenue growth.
What are the main areas of digital transformation?
Yeah, it’s crucial to know about the essential areas of digital transformations. It is generally categorized into four main areas: business processes, business model, domain, and organizational culture.
What is a digital transformation strategy?
Digital Transformation Strategy means to plan out or to make a framework on how to implement the digital transformation-for instance-analyzing the current situation of your company, accessing the budgets and new technologies, way of implementation, etc.
What are the three main components of digital transformation?
The three primary components of digital transformation are:
1) Maintaining processes
2) Maintaining operations
3) Maintaining relationships with customers.
Benefits of Digital Transformation
Undoubtedly, digital transformation provides a tremendous return on investment when it is done in the right way. Companies that are focusing on the core and functionalities of the digital changes are winning the markets. Here are some of the digital transformation benefits why the entrepreneur world is inclining towards it?
Reduction in cost
With digital transformation, it reduces the overall cost by increasing efficiency and productivity. The integration of the latest technologies in the business automates the services, customer experiences, and establishes a better connection between the clients and business.
Value Creation via new technologies and new businesses
Speeding up the business processes with digital technologies integration always results in better value creations. Let’s take the example of a giant company, Microsoft. As we all know, Microsoft sells products like Windows and Office and provides the license to the paid clients. But, in 2014, when CEO Satya Nadella transformed this traditional way with cloud computing technologies. Their business revenue jumped from $0 to $24 billion annually.
Digital Transformation Roadmap
Digital Transformation is a continuous process, and it cannot be completed in just one day. So, to avoid creating a mess in the digital transformation framework, all you need is to frame the entire process in a few steps. Have a look at the guide for the digital transformation process:
Step1: Analyze the weak and strong sides within the company and outside.
Step2: Set objectives for the transformations- what would be the final results? What is your goal? Which part of the company needs to be transformed? Etc.
Step3: Decide the technology and analyze your budget.
Step4: Work on your defined roadmap and prioritize the activities accordingly.
Step5: Choose the right employees and train your team as per your level of transformation.
Step6: Implement the changes and provide ongoing support for the new technologies.
Top five digital technologies that are already implemented in digital transformation:
The use of the technologies entirely relies on the way you provide the services and type of business you have. These digital transformation technologies tailored the needs of your company and leveled up the services of your business. Here are the leading digital transformation technologies that are used in different industries:
Cloud computing is a stone turning technology in the digital transformation world. Cloud computing is a cost-effective technology and ready to embrace the latest changes in the world of technologies.
The scaling and speed are the two primary benefits of cloud computing technology that are essential for every industry or business.
Artificial Intelligence (AI)/Machine Learning (MI)
Artificial Intelligence and machine learning collectively, when it is used in the right manner, can take your business to the next level. Artificial Intelligence and Machine Learning are two best technologies necessary to handle the complexities in the project and reduce the room for the errors.
Blockchain is one of the strongest pillars of digital transformation. Blockchain makes the business processes more transparent and secure by handling the transactions and eliminating the use of third-party tools. As a result, it reduces the time and cost.
Augmented Reality (AR)
Augmented Reality is one of the essential aspects of the digital transformation field. It enhances the operational activities and competitiveness of the company in the market. AR applies to safety, product development, and maintenance, etc.
Internet of Things (IoT)
Another fundamental technology for digital transformation is the Internet of Things. This technology helps the business to understand the customer’s needs better and provide them with the services accordingly. Internet of Things automates the company, improves productivity, and reduces the cost.
Market Analysis: top five technologies in work
As per the reports of the IDG, the percentage of the technologies in use by the businesses and companies are Artificial Intelligence (56%), Machine Learning (55%), Internet of Things (50%), Software Defined Networking (45%), and Software-Defined Storage (44%).
Digital Transformation Examples:
Before implementing the digital transformation in your real life or your business, let’s look at real-time examples of digital transformation. Here is the list of giant companies who choose digital transformation: Disney, Nike, Audi, Microsoft, etc.
I think there is no better example of digital transformation in the automotive industry. Audi is one of the “analog” industries that have stepped in the digital transformation world, and no doubt, they got success in it.
Moving towards Audi’s digital transformation concept, then “Audi” launched the idea of “Audi City” in 2012. In this, they have provided the digital catalog of all the car models so that the users can check the availability in the nearby Audi showrooms in their city.
According to the sources, Audi’s sales increased by 60% with the digital transformation compared to the traditional showrooms.
No doubt, Disney world parks are part of the “analog” entertainment. They also succeed in their business with the help of digital transformation integration. After this drastic change, Disney is known for its improved visitor experience.
The Magic Bands’ implementation in the parks offers visitors with facilities like making payments, managing reservations, check-ins and check-outs in hotels, etc.
Another example of Disney’s digital transformation is Disney+ streaming. It gives a fierce competition to other online streaming sites like Netflix. These two are the successful digital technology concepts of Disney.
Nike is one of the wonderful examples of digital transformation – How a shoe selling company jumped into the world of digital technologies? Quite Interesting, Right?
Nike is a well-established and giant footwear company. They started focusing on mobile and web applications and providing services to their clients online.
With the integration of artificial intelligence technology, this company is supporting its customers by providing the facility of scanning the foot size and chooses the shoe type accordingly without even going out in the physical shops. When the concept of NIKE SNRKS set up in Japan, its sales increased by almost 100%.
This digital transformation not only enhanced efficiency and productivity but also increases the sales of the company.
After reading the digital transformation process, you will get that digital transformation is not only possible, but it is also profitable for both the businesses and customers. A good sense of the market demands is the dire need of the digital transformation. If a company successfully achieves all these steps of the digital transformation, no one can beat them in the market.
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