Digital Transformation is the process of using digital technologies to create innovative products, services, business processes, culture, and customer experiences to meet changing trending business and market requirements.
Digital Business Transformation is re-imagining of business in the digital age is Digital Transformation. Another way of looking at it: Digital Transformation is the cultural, organizational and operational change of an organization, industry or ecosystem through a smart integration of digital technologies, processes and competencies across all levels and functions in a staged and strategic way.
It wasn’t that long ago businesses kept records on paper. Whether handwritten in ledgers or typed into documents, business data was analog. If you wanted to gather or share information, you dealt with physical documents — papers and binders, xeroxes, and faxes.
Then computers went mainstream, and most businesses started converting all of those ink-on-paper records to digital computer files. This is called digitization: the process of converting information from analog to digital.
Today, digitalization is no longer an option for organizations – it’s mandatory in order to compete.
Clearly, digital transformation is changing the way business gets done and, in some cases, creating entirely new classes of businesses.
If fact, with digital transformation, companies are taking a step back and revisiting everything they do, from internal systems to customer interactions both online and in person. They’re asking big questions like “Can we change our processes in a way that will enable better decision-making, game-changing efficiencies, or a better customer experience with more personalization?”
Studies by McKinsey & Company show that a digital transformation is most successful for organizations that deploy more technology than others do. This includes aspects like:
- Artificial Intelligence Tools
- Big Data and Big Data architecture like data lakes
- Mobile internet technologies
- Cloud-based services
- Internet of Things
- Advanced neural machine learning techniques like deep learning
Research proves that other key factors to a successful digital transformation include:
- Having the right, digital-savvy leaders in place
- Building capabilities for the workforce of the future
- Empowering people to work in new ways
- Giving day-to-day tools a digital upgrade
- Communicating frequently via traditional and digital methods
Digital transformation analysts point out that digital transformation is not just about disruption or technology. It’s about value, people, optimization and the capability to rapidly adapt when such is needed through an intelligent use of technologies and information.
In some countries, such as Japan, digital transformation even aims to impact all aspects of life with the country’s Society 5.0 initiative (which has some similarities with the Industry 4.0 industrial transformation vision).
Digital transformation is the profound transformation of business and organizational activities, processes, competencies and models to fully leverage the changes and opportunities of a mix of digital technologies and their accelerating impact across society in a strategic and prioritized way, with present and future shifts in mind.
The development of new competencies revolves around the capacities to be more agile, people-oriented, innovative, customer-centric, streamlined, efficient and able to induce/leverage opportunities to change the status quo and tap into big data and new, increasingly unstructured data sources – and service-driven revenues, with IoT as a vital enabler. Digital transformation efforts and strategies are often more urgent and present in markets with a high degree of commoditization.
How is your organization’s digital transformation going? Tonex can help with courses taught by professionals in this field who also have real-world experience.
For more information, questions, comments, contact us.
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