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What is digital transformation

What is digital transformation

What is digital transformation?

Definition of digital transformation: Digital Transformation is using digital technologies to create new or modify existing business processes, culture, and customer experiences to meet changing business and market requirements.

Integrating digital technology into every aspect of a organization’s operations and fundamentally altering the way that it operates and provides value to consumers is what digital transformation refers to. Unfortuitously, though, it is also a culture shift that demands organizations to persistently question the existing quo, experiment, and get comfortable with failing.

Digital business transformation: This is crucial for all businesses, from the small to the enterprise. That message comes through loud and clear from seemingly every keynote, panel discussion, article, or study related to how businesses can remain competitive and relevant as the world becomes increasingly digital.

Benefits of Digital transformation initiatives

Digital transformation can focus on tackling specific areas, such as:

  • Digital adoption. Adopting digital implies integrating software into a digital context, such an enterprise work environment, and utilizing it as intended. Many organizations lack a digital adoption role, slowing digital transformation, learning, and organizational change.
  • IT modernization. In the modern world, it will be hard for a organization to keep up if it doesn’t have modern tools or infrastructure. IT modernization can involve a lot of different things, like getting new products for the digital workplace, switching to cloud computing, training employees, and so on.
  • Cybersecurity. Cybersecurity is an important part of running a business in the 21st century. After all, data breaches can be very bad for a organization’s profits, reputation, and brand. Since cybersecurity is such a complicated and fast-moving field, many companies hire cybersecurity organizations and digital transformation agencies to help them grow.
  • Developing new products or services. One of the main reasons why organizations work on “Digital Transformation” is to look for ways to grow. New products and services can give a business an edge in the market, help it dominate it, or even shake it up.
  • The customer experience. Today’s businesses compete based on client experience. One unpleasant encounter might make a client switch brands. To satisfy digital client expectations, many organizations must adapt their operations, business processes, and attitudes.

A digital transformation strategy will naturally focus on how to improve areas like those just listed as effectively and efficiently as possible.

Since digital transformations require a lot of changes to an organization, strategies for digital transformation are closely tied to strategies for managing organizational change.

How Do You Create a Digital Transformation Strategies?

  • Long-term vision. This is the final goal, and it’s important to know where the digital transformation journey is going so that customers and other important people know where it’s going.
  • Short- and medium-term vision. But it’s important to have “mile markers,” or short- and medium-term goals, along the way. These should be clear, doable, and able to be measured.
  • What it means for customers. Often, digital transformations are based on what customers want and what they expect to change. Even if that’s not the main goal, it’s important to keep an eye on what customers want. This is why it should be clear in the north star.

Despite the fact that this is just the first phase in the process of digital transformation, it is essential that this strategic goal be articulated in a clear and concise manner in any digital transformation plan.

Some Digital Transformation Challenges

Lack of Dedicated IT Skills

Digital transformation requires a skilled IT workforce. But assembling this squad is difficult. As more organizations use new technology, there’s less employment.

54% of organizations couldn’t meet their transformation targets because they lacked the required capabilities. They didn’t understand:

  • Cybersecurity
  • Technical architecture
  • Enterprise architecture
  • Advanced data analytics

One way to get around this problem? You could add to your team by hiring outside experts and software consultants.

A Lack of Organizational Change Management

Outdated infrastructure, inefficient procedures, and dogmatic leadership might hinder digital transition. In 2020, organizations struggled to adopt a remote business strategy.

Transformation might seem unattainable when new instruments and change resistance are added.

Change management may help your organisation prepare for the future. Instead than concentrating on the technical part of digital transformation, build a change management strategy.

Evolving Customer Needs

People have recognized how much they can accomplish on a laptop and smartphone this year. Customers have become more picky and demanding.

We advocate doing market research to determine which technology your consumers prefer. You’ll know what customers desire and what the competition is doing to earn their business.

Digital Transformation Examples

Digital transformation for enterprises: previusly explained.

Digital transformation in manufacturing: Digital transformation in manufacturing includes upgrading existing processes, products, and workforce with digital technology including automation software, eCommerce, sensors, and industrial robots.

Digital transformation in healthcare: Digital transformation in the healthcare business implies using technology, people, and processes to give greater sustainable value to patients, healthcare professionals, and the medical organization itself. Using creative ideas and modern technology to maximize industrial advantages.

Digital transformation in banking: Digital transformation in banking needs online&digital services and backend process changes to enhance digitization and automation. To compete with digital natives, banks should provide consumers an end-to-end digital experience.

Digital transformation in government: Private sector digital revolution is deep. Online materials and examples highlight the advantages to SMBs and companies. Digital technology affects the public sector, too. It can have a huge effect on how the government keeps track of, records, and processes its own operations, data, and services.

Some examples of digital transformation technologies and trends in digital transformation

  • IoT: IoT lets your organization analyze data and take action on it, so you can make smart decisions in real time. By using the right IoT solution, industries like manufacturing, transportation, energy, agriculture, retail, and government can be more efficient and give customers more value.
  • Robotics: Robotics is a branch of science and engineering that focuses on the design, construction, and use of mechanical robots. It is an interdisciplinary field. Our guide will help you understand robotics, including the different kinds of robots and how they are used in many different fields.
  • AI: Artificial intelligence (AI) is the simulation of human intelligence in machines that are programmed to think like humans and act like them. The term can also be used for any machine that acts like a human mind, such as by learning and solving problems.
  • Augumented Reality: Augmented reality (AR) is one of the hottest tech trends right now, and it’ll only grow as AR-ready smartphones and other devices become more accessible. AR allowed us witness trees swinging in the park, dogs chasing balls, and youngsters playing soccer with a digital augmentation. A pterodactyl may arrive in the woods, the dogs may mix with their cartoon counterparts, and the youngsters may kick past an extraterrestrial spaceship to score a goal.

What are 4 digital transformation areas?

Some experts and thought leaders advocate 4 digital transformation models.

Which model is best?
Who should you follow?
Review the answers and draw your own conclusion.
Here are some online perspectives on digital transformation and strategy.

According to, businesses should have 4 focal points when designing a digital transformation plan:

  • A strategic focus that aligns digital transformation with overall strategy.
  • A customer focus that creates a consistent, unified, modern customer experience.
  • A culture focus that ensures the workforce has the right mindsets, attitudes, and behaviors.
  • A focus on data to help the company make informed decisions, improve business processes, etc.

A well-rounded digital transformation plan will help organizations improve internal operations, customer experience, and market position.

What are the pillars of digital transformation?

Digital Transformation pillars are:

  • Customer Engagement
  • Empower Employees
  • Optimize Operations
  • Transform Products

These pillars help us think of and bring about new and/or better business results that we can measure and rally around. Look into each.

Engage Customers

Customers are the lifeblood of any business, and how well an organization builds and maintains relationships with its customers determines whether it will grow or stay the same. “Customer” refers to people outside of your organization who have an interest in it.

Customers are the people who buy your goods and services. They could be B2B clients. In the public sector, customers are citizens or people who are registered to vote. Through customer touchpoints, digital transformation helps give your organization a better “face.” Improving how customers feel, how satisfied they are, and how they see your brand will help your business.

Empower Employees

Great companies put money into their employees and build a culture of high performance. Empower Employees asks, “How can we better serve our people by using digital technology?”

We try to give our clients “the right information, at the right time, in the right format.” For mobile workers, getting information on the go is probably a top priority. What do I need to know when I’m fixing equipment or going to see a customer? What information should an executive see “at a glance” to start the day?

Creating data and analytics assets to meet the organization’s information needs is also part of Empower Employees. How can we help IT managers, BI experts, and data scientists? As Microsoft partners, we have access to a wide range of tools and technologies that help us align team structure and organizational goals. If we give each of these groups more power, we can speed up delivery, improve quality, and get more users to use the system and be happy with it.

Optimize Operations

We talk about opportunities and projects as “people, methods, and tools.

“From the inside out, Optimize Operations changes an organization.” It starts with knowing how things are done now in HR, production, sales, marketing, finance, etc. We help organizations put together large stores of data that can be used for analytics and insights. This could be a model that tells us how long our products will still be useful, or in retail, it could tell us which customers will leave (and when). When we find patterns in data, we can take action before it’s too late.

Transform Products

Transform Products is the last pillar of digital transformation. This term could refer to both products and services, since the key is how companies use technology to improve their value proposition to the market and their customers. Wearables that track your fitness and monitor how well you take your medicine are examples of digital innovations in healthcare. Digital progress not only makes these products and services work better, but it also opens up new markets.

The digital transformation megatrend helps us find new ways to help our clients. As this series goes on, we’ll look at client examples that show these points and motivate you to look for opportunities for Digital Transformation in your own organization.

Other Resources:

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