In this period of accelerating technological development, the terms ‘digital transformation’ and ‘digitalization’ are commonly conflated. While digitalization refers to the utilization of advanced technologies to automate processes and actions – such as automated email responses – digital transformation services is an even broader concept encompassing both these approaches along with alterations in workflow or management practices that may be influenced by digital technology.
The benefits of digital transformation include increased agility, responsiveness to customer needs, improved safety and security, and enhanced competitive advantage. Organizations can achieve these benefits by implementing the right technology solutions and processes, as well as leveraging the right partnerships and resources.
The 4 main areas of digital transformation are
- Process Transformation
In today’s era of digital transformation, companies are working towards transforming their business processes and operations with technology in order to make maximum use of their capabilities and achievements along with capitalizing on the opportunities more proficiently.
Process transformation is the process where digital technologies are used for automating or improving existing business processes. It may cover automation of data entry or implementation of artificial intelligence or streamlining the decision-making process.
For most organizations, a business process transformation is one of the key steps toward ensuring their continued success and growth. Process transformation is a refreshing facelift to organizations’ procedures while providing enhanced access to technological advances as well as more cost-effective integration of core systems.
For example, introducing robotic process automation can help upgrade the manual operations involved in procurement, supply chain management, and other administrative functions.
- Business Model Transformation
The business world is changing fast, and enterprises are coming to terms with the necessity for transformation. Process transformation aims at targeted areas of a business while reinvention or digital transformations focus on how to deliver value according to their industry’s model.
You can transform the business model in different ways. For example, changing the pricing strategy or expanding to new markets or developing new products or services. Regardless of the path taken, the goal of the business is always to stay ahead of the curve and take the business to new heights.
The Netflix model is an inspiring example of how business transformation can be realized through the utilization of modern technologies. Initially, they operated as a hands-off service that provided DVDs to consumers’ residences; subsequently transitioning into one where users can select videos for viewing at will from their computer or mobile device. Although specifics about your enterprise plan may not matter in and of themselves, it’s imperative to remain adaptive and innovative when making changes such as this – success lies in responding adaptively with what works best for you!
- Domain Transformation
When one organization is able to successfully transition into another industry, it is known as a domain transformation. Today more and more businesses are looking to transform their businesses by moving to the cloud. In simple words, it means domain transformation is the process of moving your business operations and data to the cloud. Domain transformation can help in reducing overall costs, improving business scalability and increasing business agility.
A great example of domain transformation can be seen in the history of Amazon, a prominent internet retailer that ventured into uncharted territory by launching Amazon Web Services (AWS) – an unparalleled cloud computing/infrastructure service provider which presently holds the lead position within this sector. At present, AWS is the undisputed leader in cloud computing/infrastructure services; a niche dominated by titans such as Microsoft and IBM earlier.
- Cultural Transformation
A successful digital transformation is more than upgrading the technology or redesigning the existing products. It is important for an organization to align its digital transformation efforts with its organizational culture. It needs to align the internal values and behaviours of the employees with the digital transformation.
Organizations often find it difficult to bring about a change in their work culture. Many times, the management is unable to align the company’s goals with their staff’s behaviours. Therefore, the majority of the time any efforts taken towards transformation are resisted within the company.
Bringing about cultural transformation is challenging as culture is deeply rooted and people are resistant to change it. To transform the organizational culture, the management needs to be committed and should be role models in establishing the change. They need to be patient and clear about the goals. Only then can they hope to see a cultural transformation.
Experian is one of the best examples of cultural transformation. They introduced a change in their workflow and focus on data by inculcating collaboration practices into the system. This resulted in making the employees more agile with how they manage things internally across all departments along with providing them with an opportunity to learn and develop new skills which can help them grow in their careers.
Conclusion
Organizations seeking successful digital transformation must look beyond technology. Only by completely revamping their organizational structures can businesses realize the benefits brought about by digitization – operational enhancements, opportunities for cooperation and a revolutionary approach to customer experience that will leave them astounded.
Integral Choice’s digital transformation solutions can help organizations understand their business strategy and invest in appropriate technologies. Our experienced consultants can help develop a framework to meet your specific needs, considering your business models and the best practices of the industry.