The endeavor of this article is to decode the true meaning of digital transformation and ways of implementing it in the business organizations. First and foremost will explain the meaning of (dx) digital transformation and its scope, key drivers and steps to undertake when considering and creating DX strategy.
My name is Marek Straka (Driving Business Performance)and I work as a business consultant for Big 4 [one of them]. I will introduce you more deeply into various business topics such as Digital Transformation, Operations, Digital Marketing and modelling. So let’s continue with Digital Transformation details.
What will you know after reading this article?
- Real meaning of the Digital Transformation (DX) and its benefits
- Perception of DX in different sectors
- Key drivers and need of DX
- 5 Reasons why to adopt the DX into your company
What does it mean Digital Transformation? [Definition]
“Digital Transformation”(DX) is now being seen as a synonym to modernization efforts, that is moving from on-premise systems, waterfall developments, API driven services etc.
Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.
DX includes process changes, big shifts in technology landscape and their right implementation. To put it simple, digital transformation is defined as integration of digital technology into all business areas of a company. It makes the difference in business operations and the output for a customer.
Briefly, we can say that digital transformation (DX) is changing the way how many companies carry out their operations.
The most important benefits of DX
- Encouraging innovation
- Inculcating new business ideas
- Helping in digitization of the assets
- Improving employees’ efficiency
- Helping with customer satisfaction
Digital transformation (DX) denotes a radical reconsideration of how an organisation utilizes innovation, individuals and procedures to fundamentally change business execution.
DX should be driven by CEO, and requires cross-departmental joint effortin matching business-centered methods of insight with quick application of advancement models.
Perception of DX in Different Sectors
The digital transformation is a growth opportunity for their business. (Check the image above)
Only 8% of employees see it as a threat.
The remainder not quite knowing how to approach it. These sentiments are more or less stable across sectors, with little variation.
Retail is the most optimistic, with 86% looking forward to digitally-driven growth.
It is also caused by the industry need to react flexibly to all changes in customer behavior.
Manufacturing, meanwhile, is the least optimistic, but not by much: 80% are still hopeful that their business will receive a boost from the digital revolution.
However, this sector also appears to be the most uncertain, with 8% of respondents unsure about how to respond, almost double the corresponding percentage in other industries.
Key Drivers and Need of DX
Today’s digitally enabled, mobile-equipped, 2019 consumer causes many problems to the enterprises which are not sufficiently equipped to cater for modern needs and demands.
These issues manifest themselves through loss of custom (to digitally equipped competitors), inefficient marketing, poor consumer insights, and an inability to scale.
5 Reasons Why Should Be DX Adopted
1. Boost to Customer Acquisition and Retention
Digital Transformation will reinvent the offerings and the reach of such enterprises, providing access to larger online markets that are currently out of reach. Across industries, the main incentive for Digital Transformation is customer experience and satisfaction.
Faster digitizing competition can be serious threat.
2. Well organized Workflow and Operations
A digitally transformed business has strong technology oiling the machinery behind internal operations, enabling teams to collaborate seamlessly across departments, and streamline communications across a whole workforce and supply chain.
DX strengthen the workflow and cooperation inside the company.
3. Global Reach
It is the advancements in digital technology that have enabled the globalised marketplace. Recent advances in cloud technology in particular have removed barriers to entry for even the smallest companies, whose growth now is only limited perhaps by ambition or access to funds – for the technology is there for them to expand as far and wide as they like.
In short, with Digital Transformation there is no limit to a company’s world-wide reach.
4. Effective and Improved Management and Marketing Decisions
A Digital Transformation program will streamline management on every level. Digital tools will gather, analyse and visualize (graphs, charts, etc.) data gathered from every corner of the enterprise.
From this, predictive models will be produced to help CxOs and managers identify business opportunities and risks.
Consumer behaviours will also be analysed to predict the next market trend. And areas of workflow inefficiency in production chains can be recognized and singled out for improvement.
DX improve the quality and speed of decision making.
5. Vigorous Development of New Products and Services
Businesses that need Digital Transformation are those that have not kept up with the pace of market, technological and competitor evolution.
The implementation of modern systems and technology will aid in the market research, production and subsequent sign-off of all new services, campaigns and products, ensuring that, once regained, their place in the modern market does not later give way once more.
Adopting a company to digital technologies, automation and cross-departmental flexibility can only improve the company’s ability to adapt on the market to new customer needs, product offerings, competition and can speed up its decision making.
In next upcoming years it will be crucial factor to transform the company on market conditions that are changing rapidly than ever. DX will be new disruptive factor that can determine whether the company will survive and keep or improve its positions.
PART II. 5 Essential Elements for Digital Transformation Strategy. [COMING SOON]
What is your opinion on Digital transformation according your experience if any? What hard times your company has or what topics struggles the most? Let me know your inputs and thoughts in the comments below.