Go ‘digital’ or go home. What is digital transformation?

As the technological revolution is now tapping the doors of every industry, businesses worldwide are also changing their approach! Chairman and CEO of Accenture, Pierre Nanterme, “Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year 2000.” Now it is up to you as a leader, whether you want to be the one who enters with a bang or one who disappears quietly!

Let’s understand why digital transformation isn’t just a buzzword and why it is necessary for your business.

“Porsche” is an excellent example of a digital transformation solution. Porsche has smartly and heavily invested in understanding the Porsche driver. To do that, it has all customer data pulled into a central CRM data center and allocated to a unique ID. Throughout the entire lifecycle, every customer interaction at every touchpoint is documented. Thanks to this ID, Porsche knows their customer’s expectations for each touchpoint!

Now that we have established how important it is to go digital, here is everything that you need to read to start from scratch and touch the seventh cloud.

Differences between Digitization, Digitalization, and Digital Transformation

As similar as they may look or sound, these are fundamentally different concepts, and while among these three, one creates the base for the creation of the other concept, let’s briefly understand what they stand for and why as a smart leader, you need to make them part of a fabric of your business to level up your overall game.

Digitization and Digitalization: What is the Difference?

While “Digitization” is the conversion of analog-to-digital, digitalization uses digital technologies and digitized data to impact how work gets done, transform how customers and companies engage and interact, and create new (digital) revenue streams.

Digitalization and Digital Transformation: What is the Difference?

Many business leaders often end up mistaking digitalization as an umbrella term for digital transformation. But these terms are very different. Digital transformation is more about people who constitute an organization than it is about digital technology. It demands organizational changes that are customer-centric, backed up by top-management, which can leverage technologies to empower employees.

Benefits of Digital Transformation to a business

While Executives say that, top benefits of digital transformation are improved operational efficiency (40%), faster time to market (36%), and the ability to meet customer expectations (35%); one of the significant benefits of digital transformation is that it saves time. previously performed tasks manually by staff. Business Process Automation is often seen as the stepping stone to a more holistic digital transformation, but it can also be one outcome. Digital transformation comes with lots of high-level benefits, including:

  1. Digitalization of each Business Operations
  2. Quality customer experience
  3. Empowered workforce
  4. In-depth Customer Insights
  5. Elimination of Time-Consuming Manual Processes via Business Process Automation
  6. Creation of Digital Products and Services
  7. Broadening of prospects reach to global level
  8. Simpler and quicker Collaboration Across organizational Departments

Why digital transformation is essential for business growth

As 2020 has turned out to be one the most unexpected years, it has also converted Digital transformation, which was seen as an option or something to be considered in the next fiscal year, into a strategy that has emerged as an essential survival tactic for businesses the globe. Not only it provides businesses with an ability to operate under challenging conditions like lock down, but 56% of CEOs also say digital improvements have led to increased revenue.

Digital Transformation Timeframes and Growth Rates

Having said that, below mentioned are the 4 prime reasons why Digital Transformation is essential for your business growth:

  1. To streamline the workflow and business process
  2. Boost the customer experience of the business process
  3. Resilient to future development
  4. Enhances speed to market

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Digital Transformation Strategy and its Importance

The usual understanding of digital transformation strategy is that it is all about adapting to as many technologies as possible, but that isn’t the case! As a witty business leader, you must know that your business’s digital transformation strategy must have quality customer experience as the epicenter.

“A major step is connecting digital transformation to meaning,” says Jeff Skipper, a certified change management professional, and consultant to AT&T, Goldman Sachs and other big shots. While as a leader, you might be wondering where to lay that first brick of your Digital Transformation Strategy.

So, below mentioned are the two primary starting lines to shift to digital transformation.

1. Leverage effective digital technologies that customers want

While your competitors and leaders are already paving their way into digitalization, you too jump the bandwagon. The goal is to bring your brand, product, or service in front of your customer. To understand how you can leverage digital technologies, here is a great example. The beverage brand Starbucks has been working on an AI technology initiative named Deep Brew, based on the digital technology of AI tools meant to improve customer experiences. To enhance the customer experience for more than 16 million Starbucks Rewards loyalty members, Deep Brew AI takes brand experience a notch up by catering to individuals based on their preferences, order history, location, weather, and time. You got the idea, right?

2. Leverage effective digital technologies that empower your employees

The building of your business stands firm on a pillar called “Employees.” The more you provide them with a hassle-free working environment, the more they will create and work effectively. Therefore, as a leader, you must identify the potential gaps and work towards it by incorporating digital technologies.

With that said, let’s see the 5 key trends in digital transformation

Key Trends in Digital Transformation

According to a 2016 Harvard Business School study, firms that adopted digital transformation saw an average growth of 55% in gross margins over just three years, while companies that weren’t sufficiently prepared to embrace digital tech had substantially lower margin growth (just 37%) during the same period.

So what are these trends? We have shortlisted five of them, which are going to be the next big thing for sure. So adjust your focus using these five if things are looking blurry to you due to the abundant amount of technologies thriving out there.

  • AI and Machine learning

The speed and precision of AI and human insight carry the potential to satisfy the need for present and future customer engagement efficiently and productively.

  • 5G

While the consumer generally sees 5G improve smartphone connections and speed up downloads, the use of 5G infrastructure will have a much broader impact than many businesses can have the advantage of.

  • Blockchain

If you have been following banking, investing, or cryptocurrency over the past decade, “blockchain,”; the record-keeping technology behind the Bitcoin network, must have crossed your eye. Though Jack Ma, a Chinese business magnate said, “Blockchain technology could change our world more than people imagine. Bitcoin, however, could be a bubble.”

  • Internet of Things (IoT)

According to a report, there are about 26.66 billion IoT devices in 2019. IoT devices help companies to record and monitor data and give their customers state odo the art experiences, eventually increasing their sales.

  • Augmented Reality (AR)

Goldman Sachs has predicted that Augmented Reality is expected to grow into an $80 billion market by 2025. With AR, businesses can generate real lifelike experiences and help customers to interact and learn about the product.

Digital Transformation and Culture Change

Digital transformation consulting can be a challenge, if you are going to change your business procedure right from scratch. And that is a significant misconception; it Isn’t about correcting what is wrong in your business; it is about further improving your organizational, operational efficiency to make those revenue numbers prettier! To keep pace with the change led by digital transformation, organizations should be flexible and adaptable. The acceptability of employees of which every business comprises is crucial to the success of any digital initiative. To boost your cultural change aiming towards digital transformation, below given are few tips used by brands to make your strategy leak proof!

  • Strengthen internal communication through HR

Make HRs aware of the upcoming change and direct them to make employees aware of the same. HRs must provide clear and concise guidelines to employees about how abundantly they can benefit from this change and how their paychecks can have improved numbers if they adapt to digital transformation and improve their work efficiency.

  • Make your leaders love this transformation

Successfully leading a digital initiative requires robust leadership and competent management skills. And as cliche as it sounds, many employees and leaders still believe that technology is here to steal their job, so it is crucial to clear this stigma by showing your leaders how digital transformation services are here to lessen their burden and not the other way around!

  • Give your staff training a boost

To accomplish and to ensure a seamless transition to digital culture, it will be well worth your time to invest in staff training. With the right training, staff will be far more flexible to change and more enticed to embrace technology.

Digital Transformation Examples

Digital Transformation significantly reduces human efforts and increases the productivity of tasks in hand. But many times, we need someone to look up to and benefiting before investing, and that’s what smart leaders often do, and we completely understand that.

TESLA, for example, is planning to use IoT in such a way that 80% of car repairs can be done without even visiting a service center. By using over-the-air software updates, they are promising that issues can be remotely diagnosed.

“We are also developing new ways for your Tesla to self-improve. The result is a car that is constantly evolving and improving, allowing you to stay out of the shop and on the road.”, stats the official Tesla website.

Digital Transformation will pave the way for a new future

If you have a business plan to play strong and long, you have to be a trendsetter in your field. You have to create value in aspects where everyone else thinks it’s unachievable. The primary reason for going digital is that if you’re not online in these ever-changing times, you’ll drastically hurt your business. Often, businesses think they can easily create the infrastructure for change, and their staff will adapt to it. By following the ideas mentioned above, brands like you can lay a sound foundation to build a long-lasting digital transformation culture and dominate their competitors in the long run.

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