What is Digital Transformation? A Guide for Businesses

A digital transformation is any strategic initiative that applies data science and marketing technology to solve fundamental problems. The goal is to reinvent the business in ways that put customers first, taking advantage of the power of digital technology to create seamless interactions with them.

Organizations across industries enjoy the benefits of digital transformation. It enables businesses to modernize legacy processes, accelerate efficient workflows, strengthen security, and increase profitability. 90% of companies are doing business in the cloud.

Digital transformation will have a profound impact on the way firms enter and compete in the market, particularly as processes become replicable at near-zero cost margins. Competition will be vital in driving innovation and the policies set out by policy makers should reflect this.

 

The Key Benefits of Digital Transformation

Increases Customer Satisfaction

Drives Data-Based insights

Enables Software monetization

Enables High-Quality user experience

Encourages collaboration & improves communication

Increases Agility

Limits Human Error

Encourages an environment of Employee Excellence

 

Some digital transformation examples include implementing tangible, customer-centric tools like mobile applications and websites that improve the customer journey. Others involve machine learning algorithms that transform a traditional business into a digital business. Digital transformation is about using digital tools and applications more effectively to improve business agility, productivity, and performance.

Digitalization is about using digital technologies to change your business model or provide a new stream of revenue. It’s about using online technologies and channels to become a digital business whereas digital transformation is a process of reinvention. It looks at leveraging digital technologies and processes to build new systems, cultivate a digital mindset, and exploit new opportunities.

A key part of digital transformation is understanding the motivations for becoming more digital. No two businesses are the same so it’s important to know why your business is embarking on this journey. The purpose of digital transformation is to deliver mobile, convenient, and engaging customer experiences, improve the productivity of internal processes, and keep them streamlined and agile under dynamic market conditions.

 

 

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