What is Digital Transformation and how it’s benefiting enterprises
Digital Transformation is a mixture of Digitalization and Digitization. It is a process of incorporating digital technologies into a company or business’s day-to-day process, productivity, strategies and product development. With a very basic goal of turning a business digital, by handing it tools like cloud computing, AI, applications, CRM, or simply a website or application to reach prospective customers, Digital Transformation is all about moving from basic paper documents to spreadsheet life to cloud storage and smart applications.
Today, Digital Transformation is beyond growing or adopting digital tools; enterprises across the world are now relying on smart Digital Transformation strategies to get the most out of their customer interaction, and workforce to achieve sales-driven success.
Digital Transformation is about agility, flexibility and engagement.
The objective of Digital Transformation
Automation has always been a key base for Digital Transformation, turning things easier and more automated but there are also a vast number of other factors that make this technology a preferable approach among start-ups, small and medium businesses and large enterprises.
Market leaders are in for a fierce competition, with new business models and business structures being powered by customer-oriented emerging technologies.
Digital Transformation works by embedding digital technologies and tools in business models to serve everyone from customers, companies and the task force at work, here are a few key objectives or purposes of opting for Digital Transformation:
- It helps in understanding the success of the products among buyers
- Enhances customer communication and employee responsiveness
- Centralizes all the necessary data and information
- Provides algorithm-based suggestions for better sales and marketing
- Offers insights and stats into personalized services and products development
- Supports engaging and sales-driven customer services
- Improves workforce and workflow functionality with data storage and data analysis
- Connects different teams like sales, marketing, finance, etc with easy data access
- Turns services more automated and more self-sustaining
Impact of Digital Transformation on enterprises
It would be incorrect to say that only start-ups and medium size enterprises get the most out of Digital Transformation, as big fish or large enterprises are already leading. There are some most interesting examples of Digital Transformation impacting enterprises that were already climbing the ladder.
Netflix is one of the biggest examples out there of Digital Transformation and its advantageous role played. Netflix started as just a video rental company but the right use of Digital Transformation has turned it into one of the biggest online video streaming businesses or services. Digital Transformation allowed Netflix to not just go digital but understand customers’ preferences, likes and viewing habits to deliver accordingly. Digital Transformation allowed Netflix to play with user experience most intelligently.
Brands like Nespresso, Amazon, Uber and Airbnb are just a few of the many enterprises that have earned themselves a spot as market leaders solely by focusing on customer-oriented services using tools and applications that enable them to use all the data analyses needed to offer tailored experiences to the consumer market.
Digital Transformation drivers, tools and technology
Digital Transformation is a concept, a process, of turning old school working model into a future-driven and technology-driven system that runs via the support of various innovations. Tools and technologies enabling Digital Transformation or Digitalization are crucial innovative fuel.
Following are a few drivers of Digital Transformation:
- AI and Machine Learning
- Cloud Computing
- Mobile Applications
- Virtual Reality/Augmented Reality
- Edge Computing
There is no end to Digital Transformation drivers and tools. Today, Social Media too plays a major role in Digital Transformation with its ability to offer a sales and marketing-driven platform, while connecting customers and the product.
Brief – Businesses are using customer data intelligently, making products with customer-focused innovation like IOT, storing data centrally for team coordination, going digital with applications and that connect them with consumers from anywhere, using AI or automation for responding to customers’ queries or predicting their habits, etc.