What is digital transformation and why it is important?
What is a digital transformation?
Digital transformation is a familiar business concept but especially now in 2017 it seems to be the buzzword on the lips of many business leaders – and for very good reason. Keep reading to find out what digital transformation is and its benefits.
Digital transformation refers to the evolution and revitalization of the way business is done. It integrates digital technologies into all areas of business including external communication with consumers, internal processes, value propositions, organizational culture, and strategy. The main elements of digital transformation are:
1. Digital leadership: this term exceeds walls of IT sector; it refers to digitally aware management with a highly collaborative CIO.
2. Digital strategy: conceptualization of how digital technologies can help in achieving and improving business goals.
3. Innovative environment: digital transformation asks for open culture, ready for change and adopting new business trends.
4. Digital customer experience: businesses need to satisfy consumers who live in a digital world.
5. Operational agility: fast-decision culture is an essential element of digital transformation.
Quick Tip – “Agility” is at the center of digital transformation since it enables its successful implementation. It can be achieved by combination of fast execution, hyperawareness and informed decision making.
Main benefits of digital transformation
Digital transformation is now seen as the cornerstone to building a business that can survive in a rapidly changing world. If benefits are numerous, the most important ones are:
1. Your organisation will make a higher profit. According to MIT Center for Digital Business, digitally transformed companies are 26% more profitable than their analog competitors.
2. It will make your business more efficient. Digital solutions engage clients, staff and products into one productive business process, enabling customer engagement, increasing revenues and providing a clear view of the business operations.
3. Your customers will be happy. External customers or internal employees, they already live in a digital world with daily use of online shopping, mobile apps, or social media. Digital tools help build loyalty and converting new customers.
4. Gain a competitive advantage in your market by producing innovative service and products. Think about how Uber has changed the taxi business and how Airbnb has transformed accommodation rentals.
"The last decade was about changing the way people work in IT. The next decade will be about automating your business through digital transformation." – Paulius Stankevicius, CEO of Stankevicius MGM Consulting