While this is a widely used term in modern business parlance and is generally seen as a positive step by most, it is important to understand why digital transformation is so important to business growth. .
Traditionally, digital transformation has meant implementing flexible systems built in by design. For example, by adopting a broader digital presence during the pandemic, organizations were able to continue operations and support productivity during a very difficult operational period.
A few years later, Lessons learned from the new coronavirus infection (COVID-19) This includes the fact that digital transformation has become essential for businesses in various industries around the world.
Why is digital transformation important?
Digital transformation is important in this day and age, as the right use of technology is no longer just an option, but a key requirement for any business.
Customers usually have a choice when it comes to the business they do business with. Companies that can provide these customers with the best possible experience will rise to the top. That could be through better data insights, personalized support, or unparalleled functionality, all driven by your technology stack.
However, digital transformation is not only important for building and retaining a customer base. It also helps deliver an effective employee experience. Modernizing your technology increases collaboration, improves productivity, and ultimately increases the likelihood of staff retention.
To better understand why digital transformation is so important for business growth, we've highlighted the five biggest factors.
1. Everyone expects on-demand services
In an increasingly digital world, customers expect businesses to adopt the best online and digital solutions to remain efficient and competitive. If it's difficult to conduct business online, there will always be competitors who have the potential to provide users with easy access to their services.
Whether you like it or not, as a company you are participating in a technology arms race with your competitors. There are many suppliers and partners who can help you evolve your technology stack, and these are also available to your competitors. What sets your company apart is the effective execution of your digital strategy.
Employees can be just as demanding as customers. The way teams interact with departments like her IT and access systems, networks, and work tools are all fundamental to the employee experience. And bad experiences drive employees away. Businesses must consider the value of flexible and agile working to provide effective services that meet customer needs and maintain internal collaboration among employees.
2. Employees need modern tools to work effectively
While the term “new normal” was thrown around a lot in 2020, there is no denying that working from home will replace traditional work models and become the norm for many employees in 2023. Productive tools for working from home must be provided by employers, and effective digital transformation is an essential initiative to keep employees engaged.
Discover what user expectations mean for your organization and how they're changing.
Digital transformation presents a valuable opportunity for core business functions such as finance and human resources to move away from manual processes and automate key areas such as payroll. The right automation saves time and allows leaders to focus on broader business opportunities.
Productivity platforms like Slack, Teams, and Zoom have not only become commonplace in offices, but they've also become the go-to tools for teamwork. Yes, employees can now communicate with each other more easily than ever before, but these platforms can also be used to collaborate, implement more efficient strategies, and allocate work fairly and effectively. can also be used.
In most companies, all of this falls on the shoulders of the IT department, which must maintain the best network performance and enterprise-wide security, and advise employees on tool usage.
3. Security is a top business priority
A big question for many IT leaders is how to balance moving more data to the edge of the corporate network without sacrificing data security. Over time, this task becomes more difficult as threats evolve to counter past security practices. In response, companies must enforce strict protocols regarding data compliance and access.
But even the most stringent security measures are useless when network performance degrades, forcing staff to move elsewhere for flexibility and speed.
It is critical that forward-thinking enterprises implement a consistent security strategy across all networks, applications, and data, regardless of the services or service providers used.
Modern security measures are especially important as we look beyond remote working forced by the pandemic to hybrid work models that incorporate the different lifestyle needs of employees. Business owners must balance security strategies that work for their in-office staff with measures that keep their remote workers safe using personal networks and devices.
For the impact of digital transformation to be truly transformational, CIOs must work with business partners who understand their broader business goals and can work with integrity and transparency to achieve these goals. You need to have both technology partners around you.
4. Strengthening business alliances
Customer demands are increasing and competition within the industry is fierce. Businesses are increasingly cooperating and interdependent with suppliers, distributors, subcontractors, and specialized consultants to create a variety of products and services that are of interest to customers.
Managing these partners often requires document-based communication, a process that has traditionally been seen as an impediment to efficiency. However, technology is now available that can redesign this process.
For example, electronic signature systems enable more transparent, timely, accurate, and streamlined workflows. This can also bridge the gap with mobile technology, increasing the day-to-day efficiency and productivity of employees.
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Particularly when pressures on IT departments increase, both in terms of budget and responsibility, public changes to the company are often chosen over internal improvements. However, this is a mistake you should avoid.
By building digital processes early and integrating technology across the organization, companies can stay current and open to future partners.
Internal processes become more efficient and adaptable, allowing you to scale as your business grows. Over time, digital transformation will strengthen any business partnership and its overall benefits will pay off.
5. Make better decisions faster
By putting data and analytics at the center of your digital transformation strategy, businesses can leverage big data.
Today's businesses have access to more data than ever before, thanks to the Internet of Things (IoT). With the right set of analytical tools, you can transform this data into valuable business insights that you can use to make faster, more informed decisions.
Digital transformation done right
The deeper an analytical tool is integrated into business operations, the greater its integration and effectiveness.
With the right tools, you can analyze this data to gain valuable business insights and gain information that helps you make fast-paced decisions. The more central an analytical tool is to your business, the greater its positive impact.
Technologies that leverage artificial intelligence (AI) could be key to organizations' big data processing. Innovation in this field is moving rapidly, and as research progresses, the field is expected to rely even more heavily on processes such as machine learning to make timely and informed decisions. .
It is difficult to keep track of all the developments in the technology field that will help with current and future digital transformation. However, AI is definitely gaining a place at the table in the future and is likely to play an important role in developments around big data.
This is especially important given the recent acceleration of developments in the field of generative AI and the emergence of powerful new tools to support organizations.
To further support your efforts, we've also created a quick guide to digital transformation quick wins. Here are some simple steps any business can take to quickly overhaul their operations.