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Digital transformation and technology

What is digital transformation?

Digital transformation is the process an organization uses to bring digital technologies to all areas of its business, fundamentally changing how it delivers value to customers. Companies are adopting innovative digital technologies to drive cultural and operational changes that better adapt to changing customer requirements. Examples of digital transformation:

  • Companies are starting to create digital solutions, such as mobile applications or e-commerce platforms.
  • Companies are moving from on-premises computing infrastructure to cloud computing.
  • In addition, they are implementing smart sensors to reduce operating costs.

Why is digital transformation important?

The term digital transformation describes the introduction of new technologies, resources and processes to remain competitive in an ever-changing technology landscape. In the post-pandemic era, an organization must be able to adapt to these changes quickly:

  • Accelerate the time to market for a product.
  • Sudden disruptions in the supply chain.
  • Rapidly changing customer expectations.

Companies must adopt digital transformation strategies if they want to continue to lead their market. Listed below are some of the benefits of digital transformation initiatives.

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Productivity increase

New technologies, such as cloud services, save time and improve the efficiency of all business processes. For example, introducing digital technology, such as artificial intelligence, allows employees to focus on tasks that require creativity and problem-solving. Likewise, machine learning-assisted data analysis will enable you to make productive inferences to achieve your business goals faster.

Improvement of interaction with clients

In the post-pandemic era, customers expect services to always be available through multiple channels. They also need websites and communication systems that are easy and convenient for mobile devices. The following are some digital transformations directly affecting the customer experience.

  • Development of mobile applications and mobile workflows.
  • Faster tracking and order fulfillment with smart sensor technology.
  • Real-time customer interaction with artificial intelligence.
  • Improving customer support and service with automation.

Reduced operating costs

Investments in digital technology can streamline existing business processes. And significantly reduce the ongoing operating costs listed below.

  • Equipment service
  • Logistics and delivery
  • Energy costs
  • Human resource costs
  • User support costs Typically, you will be able to reduce costs because the digital transformation will help you accomplish the following tasks
  • Eliminate or replace specific resource-intensive workflows
  • Reduce the cost of expensive infrastructure and hardware with managed services and cloud computing. Automate tasks using smart sensors, smart devices, and machine learning

What is the difference between digitization and digital transformation?

Digitization is the practice of turning your job and business operations’ physical components into digital ones. The computer system can utilize that data when physical or non-digital objects are represented digitally. For instance, paper forms that clients fill out are transformed into digital forms that clients complete online. After that, analysis and business intelligence can be done with the digital data. The projects listed below are examples of possible digitalization initiatives in business. Modernization of legacy systems

  • Automation of existing paper or manual processes
  • Transferring the system to the Internet However, digitization itself is not a transformation. This is just an important first step on the road to digital transformation. Digital transformation has a much broader scope that can completely change an organization’s culture.

Benefits of Digital Transformation for Business

Informed decisions

In today’s business environment, most companies have access to vast amounts of information that can be converted into useful ideas for Development and used to make informed and prompt decisions. Data-Driven (data-driven) is an approach to managing a company’s business processes based only on the analysis of actual data. With its help, you can most correctly assess the rapidly changing needs of potential customers, make personal offers and develop the service direction. With the help of the Data-Driven approach comes an understanding of which goods and services will be most in demand even before the demand reaches its maximum value. The key condition for the successful functioning of a business in a modern economy is the massive use of digital technologies to find technological ways to enter products into markets.

Productivity increase

Employees are called upon to help digital technologies fulfill their main duties most effectively. Important divisions of the company, such as finance, accounting, and HR, will be able to automate the implementation of basic tasks. For example, processing customer data or payroll. Networking and collaboration in the digital realm greatly facilitate the interaction of different departments and groups within the company. Also, using the digital transformation process, you can set up employees’ work at a distance, which is especially important during the coronavirus pandemic.

Consumer Involvement

Any thriving business is based on the Development of normal relationships with customers. A digital toolkit will help in this task. Business digital transformation works to improve brand image by working more intensively with consumers at various stages: from accelerated complaints handling to activation of sales and promotions. All this leads to an increase in the efficiency of the enterprise.

Ensuring information security

Achieving this goal will require the implementation of several activities. These include strict control over the mechanism for granting access to certain data and compliance with the rules for their preservation. It is also important to protect the company from possible hacker attacks. All these activities will only be possible if the organization has its own IT department. If the company does not have its own IT specialists, the only way out is to contact a specialized cyber security organization. In this case, it is advisable to opt for specialists familiar with the enterprise’s specifics. In this way, the goals set will be achieved most effectively.

Strengthening partnerships

Many companies depend on each other. To attract consumers to their product, they must interact with their partners: suppliers of raw materials and semi-finished products, contractors, consultants, etc. Of course, communication with them can also be carried out using paper workflow, which requires a lot of time and excludes operational interaction. With the help of digital technologies, this process is greatly simplified as it becomes faster, more accurate and more transparent. Optimizing the internal interaction of all stakeholders saves time and resources and strengthens mutually beneficial relationships.

Development of on-demand services

Today, businesses are in great demand for hybrid IT services that expand networking opportunities and improve the quality of service. This applies not only to the usability of applications for employees and their customers. The functioning of on-demand services is only possible with clear interaction with IT staff and relevant tools.


What are the types of digital transformation?

There are four primary forms of digital transformation that any firm can implement.

  • Business process
  • Business model
  • Business domain
  • Organization of culture Let’s look at them in more detail using examples of digital transformation.
  • Business process Process transformation examines creative approaches to enhance current internal and external work processes. New technologies frequently alter and enhance procedures to attain superior business results.
  • Business model Model transformation is about reimagining the existing business model with cutting-edge technology to offer core business services in new ways or through different channels and increase revenue growth and customer reach.
  • Business domain A domain transformation occurs when one business can successfully capture a new market segment or domain. You can achieve this by focusing on digital transformation projects that expand offerings, not just improve existing ones.
  • Organization Organizational transformation involves completely rethinking the entire organization or its internal culture, focusing on delivering the highest value to customers. This is the best way to stay ahead of the competition and reach your business goals faster.
  • Artificial intelligence (AI / AI) combines various technologies that allow machines to carry out creative and thought processes. With the use of artificial intelligence, labor productivity increases significantly, while transaction costs, on the contrary, decrease.
  • Machine learning (ML) is the ability of technology to independently analyze and draw appropriate conclusions due to the processing of a large amount of information. This process is the second most important in digital transformation. With the help of machine learning algorithms, you can speed up the decision-making process several times.
  • Big Data processing is the main driver of the entire transformation process. Large amounts of data in the conversion procedure have the same role as modern car engine fuel. Indeed, the correctness of the chosen direction and the timeliness of those changes that allow the organization to adapt to the flexible needs of consumers depend on how their collection and analysis are organized.
  • Robotic Process Automation (RPA) removes a significant number of typical operations from employees and redirects them to virtual assistants or bots that work through artificial intelligence algorithms. With the help of such automation, you can save employees’ working time and reduce the number of potential errors caused by the human factor. The free time can be used for other tasks.
  • Cloud Computing is considered one of the best ways to accelerate an organization’s digital transformation.
  • Blockchain is a shared ledger technology based on a continuous sequence of immutable blocks of information linked together. With their help, it becomes possible to create a decentralized network for storing data, and third parties will not control it.
  • Virtual (VR) and augmented reality (AR) are technologies in demand in the gaming industry and the digital transformation process. The most famous examples of the use of virtual and augmented reality are the use of virtual copies of physical stores and digital fitting rooms. Also, these technologies are used when marking goods in a warehouse or a projection display on a car windshield.
  • The Internet of Things (IoT) and the Industrial Internet of Things (IIoT) are the links between a person and the environment of devices, improving the efficiency of their interaction.
  • Edge Computing – processing information and its analytics near the networks that generate them gives the organization a significant advantage in terms of speed of decision-making based on important insiders. It is critical in the Development and promotion of Internet of Things technologies.
  • A Digital Twin is a visualized digital copy of a physical object or process. Every day it finds wider application in many areas. The workflow using digital twins most often takes place in virtual reality mode.
  • Process analytics (Process Mining) is the main tool for controlling the workflow during digital transformation. The technology allows the use of tools from the arsenal of data mining. This is necessary for a detailed reconstruction of existing business processes, their analysis and optimization.

What are the different stages of digital transformation?

Each business has its own transformational route, which is only sometimes obvious. We recommend the six stages below as a general framework.

  • Stage 1 – status quo In the initial stage, businesses preserve the status quo and carry on as usual in the face of shifting client demands and technological advancements. It is crucial to advance to the next stage as quickly as feasible because a lack of digital initiatives can render any organization obsolete.
  • Stage 2 – activity In the second stage, businesses recognize the need for digital optimization since they know the current issues and requirements for a digital transformation program. The same challenges are being approached from various angles by several departments. Even though this level is an improvement over the last one, it needs more cohesion and emphasis. To be successful in their digital transformation efforts, organizations must find a way out of the first chaos.
  • Stage 3 – Intention When a business enters the intent stage, digital transformation starts. Important digital change agents and leaders are starting to emerge and test new technologies. For the move, they formally ask corporate management for permission. At this point, the company culture may be a barrier; thus, management should aggressively urge the innovation culture to change.
  • Stage 4 – Strategy The organization completes the fourth step, which results in individual groups and departments deciding to collaborate. Key stakeholders adopt a targeted strategic strategy to achieve a successful digital transformation. They prepare for a change in various ways, including ownership, research, effort, and investment.
  • Stage 5 – targeting The fifth stage is when businesses begin implementing the digital transformation strategy we covered in the previous stage. They have a cross-departmental team of innovators who decide what needs to be done now and over the next few months to successfully transform their firm into one that employs digital technologies. It is beginning to take shape in new digital initiatives, infrastructure, and projects.
  • Stage 6 – adaptation Businesses that have achieved this point are equipped with a digital transformation system to handle all upcoming customer demands. They may readily follow the route of technological advancement as it becomes ingrained in their way of life. Projects involving digital transformation have become commonplace inside the company in Phase 6.

Preparing your business for digital transformation

Experts recommend that those companies that have decided to carry out transformations begin with the four steps listed below. It will also be important to have ongoing communication with the software vendor to help develop the digital transformation strategy and roadmap. Also, programmers will help you choose the best solution that meets the company’s needs.

  • Determine your starting point This requires an audit of all systems and assets. Based on its results, it will be clear which machines are already working or supporting digital technologies, which require the installation of IoT gateways, etc. For a predictable successful launch of the transformation, a list of processes within the company that have a high operational priority should be compiled so that they can be easily converted.
  • Set Your Priorities Only plan to run a marathon if you have the proper training. The advantage of a digital transformation program is that it does not need to be planned and implemented on a tight schedule. Intelligent technologies are created for gradual Development, scaling and further integration.
  • Prepare a route map The advantages of using intelligent technologies are their high scalability, quick adaptation and reconfiguration. A well-designed transformation roadmap should enable flexibility and growth. It is from the preparation of the route map that it is necessary to read the implementation of the project.

What is a digital transformation strategy?

A digital transformation strategy is a detailed plan for implementing any organization’s short- and long-term digital transformation. It includes the following components:

  • Leaders who initiate and drive transformation
  • Investment and financial planning
  • key performance indicators (KPIs) to measure return on investment (ROI)
  • The tools and processes that will support the transformation
  • external resources and external experts
  • The impact of the transformation on customers and employees. Here are four steps in developing successful digital transformation strategies

Align digital transformation with your business goals

Planning for digital transformation projects should focus on your organization’s overall plans, not on a specific technology. Your key areas will also help define key performance indicators, ensure the transformation is measurable, and accelerate time to value.

Create a prototype

The best startup projects can produce measurable outcomes in six months or less. Creating the first initiatives to show a return on investment and win management support is preferable. These preliminary prototypes can then be steadily improved and expanded across the enterprise.

Make a Technology Implementation Plan

Digital transformation includes several tools to bring change to your organization.

Collect feedback and refine your digital transformation strategy.

It is important to include reliable feedback loops in digital transformation project plans. Collecting stakeholder feedback regularly ensures that everyone learns from the experience and evolves dynamically. Because digital transformation is a journey, adding breakpoints to your schedule allows you to make changes as needed.

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