It’s an era where disruptive technologies like blockchain, data visualization, machine learning, and artificial intelligence, are reshaping the way customers think, organizations function and services are rendered. In order to cope with these market changes and stay ahead of the immensely increasing competition, businesses are bound to adopt technologies that helps them evaluate innovative ideas and unlock unique revenue opportunities.
IDC’s Worldwide Semi-annual Digital Transformation Spending Guide forecasts that worldwide spending on digital transformation will reach $1.97 trillion in 2020, achieving a five-year compound annual growth rate of 16.7 percent between 2017 and 2022.
Although enterprise leaders predominantly recognize the need to prioritize digital transformation, not many understand what digital transformation exactly means. Does it mean jumping to the cloud alone? And how well can the transformation be optimized to translate to agile business functioning? Is digital transformation truly worth it?
Many questions arise when digital transformation comes to mind. This article will help you solve these prevailing challenges and enlighten you with tips and tricks for rapid digital initiatives.
What is Digital Transformation?
Before we dig deep into why digital transformation is vital and the right strategies to implement them, let’s see what digital transformation means.
Digital transformation is the adoption and integration of digital technology, to fundamentally change the way businesses operate and deliver value to customers. In today’s world, digital transformation is fast turning into a cultural change, that requires businesses to constantly challenge operating models and experiment with new ideas.
So Why Exactly Is Digital Transformation More Imperative Today Than Ever Before?
There are four distinctive reasons digital transformation is in high demand.
Customers: Customer satisfaction is the core objective of any business. With increased digitization, customers expect a faster, convenient and enhanced quality of services.
Data: With customer insights and data, it is possible to promptly recognize your customer needs and provide them with enhanced experience. More recent technology has enabled data collection across the entire customer lifecycle. By understanding how to utilize this data to create meaningful insights of your customers, you can gain a competitive advantage and a more strategic vision for your organization’s future.
Stiff Competition: Technology along with wider scopes to opportunities have also given rise to competition. Intelligent technology implementation is the only way to meet or exceed growing market competition.
Innovation: Innovation and distinctive ideas have their secret ways to greater success. In a world where customers are on the lookout for unique experiences, businesses need to find innovative ways to grab a bigger share in the market. Transforming with the latest technologies will not only accelerate innovation in business but will also help companies survive in the market, meet increasing customer needs and expand with better talents.
How Are Industries Benefiting From Digital Transformation?
Digital transformation has come a long way for healthcare sectors. Technology enables healthcare sectors to provide more patient-centric services. Through trending technologies like big data, health care centers can better analyze information, patient details, and other data to facilitate research, provide personalized healthcare and enhance patient satisfaction. Advanced technologies like IoT explore new dimensions of healthcare with real-time monitoring and increased access to health data.
The advent of smart apps has given a distinctive perspective to education. These apps are not only making classrooms interesting but are also facilitating education to students with disabilities. According to a Statista report, the global mobile education market volume is expected to increase from $3.4 billion (USD) in 2011 to $37.8 billion (USD) in 2020. Implementing more sophisticated technologies like AR and VR, universities are bringing students closer to education, providing them wider grounds of opportunities.
Real Estate, although remunerative, is considered to be one of the most challenging industries of all. However, technology is breaking all norms with various PropTech solutions for streamlined property management, systematic payment solutions, and collaborative operations. Innovative mobile apps have also made their way through the industry to help property owners woo their tenants.
Travel & Tourism
Digital transformation has made travel much more convenient and secure. Smartphone apps and technologies like VR and AR are enabling travelers to spot better accommodations, restaurants, the best selfie locations, and even communicate better.
With technology revolutionizing almost every industry, digital transformation is now the intelligent move. However, following the right strategy still remains a question.
Step-by-Step Strategy for Successful Digital Transformation.
- Determine Business Objectives
Digital transformation is a wider frame that is far beyond building customer apps or installing upgraded IT systems. To recognize the right innovations for competitive advantage, and higher growth, you need to first determine your business objectives. Analyze your customers to identify exactly what they need, determine your scope and set your business objectives. This step will also include determining the infrastructure for digital transformation and technology implementations.
- Analyze Competitors
If you are planning to transform digitally, so are your competitors. Rapid technological developments and the dynamic market may push you disrupt your own business processes. Hence, this step remains particularly important when strategizing for your digital transformation. Perform a thorough analysis of the market and your customers before you digitally transform your business. Identify scopes for better technology implementation.
- Establish New Business Models
This is the most difficult step of the 5. Transforming from a long-term process to a completely new business model would take time and a lot of investment. It’s imperative to first analyze the loopholes of your business workflow and recognize a respective technology transformation. Establishing a new business process ensures it is agile enough to accommodate the upcoming technology changes and business needs.
- Identify Right Technology
Once you have established a new business strategy, it is time to identify the right technologies that support your business models for enhanced growth and an improved customer experience. With the availability of innumerable digital options, it is trickier to choose the technologies that closely fit your organizational needs. Ensure the technology chosen provides you with cost-effective solutions to prevailing challenges in the industry.
- Prepare and Invest in the Talent Strategy
Along with finding the right technology, it is also important to find the right technology partners or consultants who can help you transform systematically and with ease. Ensure you invest in technology partners who guide you to the right technology implementation and assists you through the complete transition. IT partners or professionals who adopt an agile methodology for digital transformation are preferred, as it gives room to constant improvement and enhanced quality.
If you’re looking for a consultant to help with your digital transformation strategy, choose someone who provides complete user adoption services. They will help you identify how your employees are using current technology, provide change communication to your employees, train them, and lastly, provide insights into the user experience after implementation.
Have your organization taken a step towards digital transformation yet? If you’re hesitant, then let’s begin with an ideal strategy to implement technologies that can help you enhance your business growth and potential. Contact our tech experts today to discuss your digital transformation concerns!