Digital transformation in today’s world is looked at as an elevator which moves businesses and organizations from traditional landscape to digital one. It is more of a mindset than just a mechanism shift. Let us talk a bit about digital transformation and understand its purpose in this blog.
What is Digital Transformation in simple words?
Digital transformation in simple words is the inclusion of both mindset and digital tools and technologies into all areas of a business or an organization. It is a new normal in the digital landscape. Digital transformation is not just about the change in technology but it is seen as a shift in culture and mindset as well.
A smooth digital transformation journey for any business depends on how well they have defined it in the first place. It is making sure the technologies, tools and strategies align with the business goals correctly.
In 2022 alone, the global spending on digital transformation reached $1.85 trillion and it is expected to reach $3.9 trillion by 2027, according to a report by Statista. This indicates digital transformation is just gained the momentum and more likely to spread all over which is not so far.
What does Digital Transformation look like for Businesses and Organizations?
Digital transformation means different things to different organizations. A strategy that worked well for one organization might not work for another. Therefore, understanding the basic objectives and digital capabilities of an organization is very important. Because it helps in creating frameworks and applying strategies that are more suitable for specific business needs.
A well-defined digital transformation strategy not only helps businesses to stay on par but also helps in navigating complexities during hardships and unprecedented times.
For instance, the digital transformation that took place in pandemic COVID19 changed the mindsets and the way businesses operate in adversity. No one expected the companies to adapt swiftly to the situation for ensuring uninterrupted business operations.
Digital transformation companies use digital transformation models to understand if the company is ready for transition. It enables them to create a digital transformation framework accordingly. The strategy is not just about adopting new technologies, but it is to encourage digital innovation.
Digital Transformation Focus:
Though digital transformation is organization specific based on their operational goals, some important standards that companies must include in their list are as follows
Customer experience
Operational efficiency
Culture & leadership
Workforce enablement
Digital technology integration
Examples of Digital Transformation:
Many traditional practices are being replaced by digital technologies as alternatives. Some of them are mentioned below.
Traditional banking services to online & Internet banking
Paper based documents to digital documents, and electronic signatures
Physical stores to e commerce sites
Traditional marketing to digital marketing
In person meetings to video conference
Factors that impact Digital Transformation:
Digital Transformation also depends on other factors like the industry, organization size, geographical location, and regulation.
Industry: Agriculture and manufacturing might remain the same while technology and finance industries adopt digital transformation to work seamlessly.
Organization size: Large organizations are more likely to implement digital transformation strategies for streamlining the workflow and managing the activities while small companies might not afford the transition completely.
Geography: Developed countries adopted the higher level of digitization, enabling neighboring countries to do the same for continuing mutual relations and business partnerships.
Regulation: Countries that are open to embrace digital transformation are more like to drive innovation growth.
Advantages and Benefits of Digital Transformation.
Digital transformation benefited many enterprises at various levels enabling them to scale, innovate and drive excellence.
Advantages of digital transformation:
Cloud computing: Shifting data and applications to cloud for scalability and cost effectiveness.
Automation: Using software and robotics to reduce repetitive tasks and errors.
IoT (Internet of things): Connecting physical devices to the internet for data collection and analysis. Example: smartwatches, fitness tracking apps, medical devices etc.
Flexibility & scalability: One can build team size irrespective of location. Expand services worldwide with digital infrastructure in place.
Benefits of digital transformation:
Customer experience
Reduced labor costs
Innovation
Note: Digital assurance plays a major role in digital transformation as it ensures all the applications and systems perform as intended.
Visit: www.tekleaders.com/blog/ for more information on digital engineering, and digital assurance.
