In the business sector, many people run their business offline, but a lot of people are now shifting their business to an online platform. But before all that, you first need to understand the basics of what is digital transformation? And why there is a need for digital transformation? Further, you will learn in brief about these basic topics in this article.
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What is Digital Transformation?
Digital transformation is the process of implementing digital technology into business or other services or removing old, traditional processes with newer digital technology or replacing manual processes with digital ones. This requires adaptability, coordination, and contribution of the entire team as it fundamentally changes the working of a business. The best example of digital transformation can be bringing Artificial Intelligence to the services for the convenience of customers and providing a better experience.
What is the need for Digital Transformation?
With the increasing demands and needs of customers, it is now mandatory for businesses to adopt such technologies that not only ease up their tasks but also help to reach customer needs without creating any trouble. Digital transformation enables firms or services to eliminate manual processes by replacing them with modern, smart solutions. It simply provides valuable solutions to complicated problems. It is time-saving, and the work done is no doubt accurate. The primary focus of digital transformation is to improvise the customer experience.
Three pillars of Digital Transformation
For companies to focus on, the MIT Sloan Management Review has identified three pillars of digital transformation, and they are- operational processes, customer services, and business models.
The companies are required to develop and invest in digital capabilities.
Redesigning operational systems using technology impacts the company’s ability to provide a great experience. Companies successfully do the transformation process of operations by:
- The Automation of processes is done by adapting better software capabilities or creating new tools, such as to eliminate or reduce paperwork and rejected orders, implementation of automated purchase order systems.
- Based on data, with increased levels of details, leaders can make strategic decisions. Rather than assumptions, they can make changes based on real data, instead of reusing or modifying the previous year’s distribution process.
To enhance the customer experience, enterprises are transforming in the following ways :
- Development of digital services and products for new devices, such as smartwatches.
- Drawing in data at every point to deliver effective personalisation.
- Management of personalised experiences across channels so that customers can use it easily and seamlessly.
Without being weighed down by legacy systems, innovative business models of startups that are made with new technologies, often disrupt long-standing brands. Established brands should pay attention to models whose offered services wouldn’t be possible without modern technology. This can generally include :
- Companies should evolve with all the changes in customer behaviour. For example, when a customer is looking for something, they might check it offline first, then do research online to check the reviews and end up purchasing it from somewhere else at lower prices. To encounter this, some businesses have created an app which allows the customer to scan the product and read the products at the business’s platform itself, to ensure that the customer doesn’t buy the product from somewhere else.
- Rebuilding services that are digital-first, such as banks that create apps that enable the customer to pay bills, apply for loans, debit or credit cards, bank statements, and so forth.