The success of an organization depends on how they adapt to meet the changing market forces or face loss. The organization should be able to anticipate the emerging technologies and utilize it to make their products better to meet the demands. Today, due to digital transformations (DX) the organizations are altering rapidly, more often and at a much faster pace to keep up with the modern customer expectations.
Digital Transformation is crucial for all business from start-ups to the well-established enterprise. The message is loud and clear coming from every panel discussion, article, and keynote. What’s not clear is that many business leaders are not aware of digital transformation or its meaning.
What is Digital Transformation?
It involves using digital technologies to redesign the existing process to become a more effective, efficient and better product, using the latest technology to transform into something better and not just replicating an existing service. Along with changing technology, a change in corporate culture and change in business process is just as important to succeed in Digital Transformation.
While the actual definitions can vary in different IT industry, everyone can agree that digital transformation involves some pretty important changes to business culture.
Key Technologies in Digital Transformation
Since technology is the key resource for digital transformation supporting digitization of an organization it can rely on multiple technologies and not just a single one. Cloud computing helps the organization to set up their IT infrastructure by providing all the necessary hardware, software, and their impeccable scalability features.
Mobile platforms provide access to work anywhere and anytime. Also, technologies such as artificial intelligence and machine learning fuel the organization to focus on accurate decisions for sales, marketing, and other strategic decisions.
Some of the other technologies that involve in digital transformation are big data, virtual reality (VR), social media, the blockchain, augmented reality and internet of things (IoT).
Why Digital Transformation Matter?
Digital Transformation is helping smart entrepreneurs to change the already established economic by digitizing. According to Dell EMC, only half of the enterprises see start-ups as a threat, and one in ten do not think they have any competitor.
While most of the business leaders don’t believe they have to transform should consider due to the below reason:
- Forrester Research report says that executives predict that 47% of their revenue will be driven by digital by 2020
- The return on investment is going to be high
- It will be more efficient and effective. According to the study, “Nine out of 10 IT decision-makers claim legacy systems are preventing them from harnessing the digital technologies they need to grow and become more efficient.”
- Customers will be happy that their digitally adopted technologies have made their lives easier.
Importance of Digital Transformation
According to IDC, the worldwide spending on digital transformation technologies hits $1.3 trillion in 2018 and numbers are expected to double between now and 2021 when the total spent surpass $2.1 trillion.
Grant Thornton conducted a recent survey where 69% of CFOs and senior financial executives are making their plans to invest in the technologies that speed business change.
According to Forrester, since the level of investment is overwhelmingly exceeding, around 40% think that about 47% of revenue will be influenced by digital by 2020. And amid confusion and resistance to change, Forrester recently reported that digital transformation efforts are coming to an end.
Examples of Digital Transformation
- General Electric has digitized their manufacturing by using IoT which enables continuous monitoring and optimization of machines.
- The coffee machines maker, Nespresso, deployed a cloud-based customer relationship management system, which offers customers to access shopping and customer service by reaching out to the company either in mobile or desktop site.
- Started as a mail-based DVD rental company, now Netflix has become one of the best online video streaming services by using cloud technology.
- People can order Domino’s pizza using any device (Smart TV, mobile, smart watches) and has developed features to live track pizza.
- In DHL’s supply chain, you still need manuals scanners, paper and pen to get the process done. However, this is no longer required as they have developed smart glasses which use augmented reality to read barcodes, provide information and process their work with more accurately.
Does Digital Transformation Stop
Since technology has rapidly changed from the last decade its safe to say it doesn’t. Digital Transformation may seem like a slippery concept, but its involvement has brought fruits to many big industries. As the demand for change will keep coming, business and technology innovation will keep emerging either from their own company or from a competitor. So the form of digital transformation continues to evolve.