What is Digital Transformation?

 


The act of employing digital technology to build new business processes, cultures, and customer experiences or adapt current ones in order to satisfy shifting business and market requirements is known as digital transformation. Digital transformation refers to this reinvention of company in the digital age. When firms use digital technologies to create new or modify existing business models and processes or to support the transformation of organizational structures, resources, or relationships with internal and external actors, scholars refer to this as digital transformation (DT) (Brynjolfsson & Hitt, 2000; Frank et al., 2019; Loebbecke & Picot, 2015; Vial, 2019).

It goes beyond conventional job functions like sales, marketing, and customer service. Instead, how you think about and interact with customers is where digital transformation starts and ends. With digital technology on our side, we have the ability to rethink how we conduct business and interact with our customers as we go from paper to spreadsheets to smart applications for managing our business.

Why is digital transformation important?

As we couldn't have possibly anticipated, we currently live in a hyperconnected, materialistic society with vast amounts of information and data. New systems, applications, and technologies keep developing on a continuous basis.

We are accustomed to encountering challenges with information sharing, challenging data management, issues with task coordination, and inconsistent data. Given this, digital transformation is crucial and has replaced traditional business practices as a requirement rather than an option.

·        Security

One of the key concerns that every IT director must address is security. It can be challenging, but not impossible, to assure a company's users that their identities are not threatened by cyberattacks in a time when new devices, services, and programs are created on a daily basis.

·        Efficiency

Employees are unquestionably the real beneficiaries from the use of new technologies in businesses. Having digital tools and otherwise solutions at their disposal involves facilitating their work and enables them to produce better results more quickly. Even though to digital transformation, corporate procedures and decision-making are optimized, and staff become more efficient. It is without a doubt the most effective technique to get rid of those outdated procedures or technologies that did not contribute to the business's expansion for the better.

·        Customer satisfaction

Technology adoption, particularly in customer experience-related operations, will have a big impact on customer retention and the accomplishment of higher satisfaction levels.

·        Competition

If you are still utilizing outdated, legacy systems in your company, you may find it very challenging to keep up with competitors that are using new technologies. Your capacity for responding to change more swiftly and capitalize on the fresh possibilities generated by digital transformation will ensure that you remain one step ahead of the competition.

·        Communication

You need a digital platform that facilitates communication and collaboration between all internal divisions if you want to drive innovation and output. The digital transformation gets rid of excessive processes, long response times, lost data, and inefficient idea sharing. Digitalizing your company's current communications will boost transparency, creativity, and performance while giving you the edge you need to surpass the competition.

Conclusion

Digital technologies contribute to power and resource shifts within and beyond an organization.

References

Accenture (2023) Digital Transformation L Accenture, Accenture. Accenture. Available at: https://www.accenture.com/us-en/insights/digital-transformation-index (Accessed: April 10, 2023).

What is Digital Transformation? why is it important (no date) Salesforce. Available at: https://www.salesforce.com/products/platform/what-is-digital-transformation/ (Accessed: April 10, 2023).


Comments

  1. SanjeewaApril 22, 2023 at 7:01 AM

    Enhanced customer experience: Digital technologies enable businesses to deliver seamless and personalized customer experiences across various touchpoints, such as websites, mobile apps, social media, and chatbots. For example, companies can leverage data analytics and artificial intelligence (AI) to gain insights into customer preferences and behaviors, and then use that information to tailor their offerings and communications accordingly. This can lead to increased customer satisfaction as customers feel valued and understood, and receive relevant and timely information.

    ReplyDelete
  2. Chamindi WedandaApril 22, 2023 at 6:14 PM

    With moving to artificial intelligence (AI) the digitalization will be a compulsory requirement. It will be a challenge to a 3rd world country like Sri Lanka. I believe computer literacy must be a compulsory subject in school syllabus to overcome the knowledge gap in our country.

    ReplyDelete
  3. Ayomi RajapakshaApril 29, 2023 at 3:59 AM

    Digital technologies have enabled the consumer to access information and save time

    ReplyDelete

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