What is digital transformation?
Digital transformation is the implementation of new digital tools and solutions into your business to evolve or create new business processes and improve efficiency, most often driven by customer expectations around services and products.
When considering your digital transformation requirements, it’s important to consider the adoption of digital solutions for core activities and external operations, such as marketing, sales, advertising, and customer service initiatives.
Why is digital transformation important?
Digital transformation should be at the core of every business strategy. It does look different for every business and it’s certainly not one size fits all. It does mean getting out of your comfort zone and challenging the way you have always done things and looking for ways to improve your current business practices.
Digital transformation is essential for all businesses from SMEs to Government organisations and large enterprises. Since the global pandemic began, it has been critical to many organisations survival and has sped up the urgency for analysing and implementing digital transformation.
Have you heard the expression Evolve or Die? Your ability to adapt to the ever-changing world in which we live in and the speed of your adoption of advancements in technology, will ultimately determine the success and longevity of your business.
How is this aligned to Digital Disruption?
Digital disruption is the term used to discuss the transformation that occurs when emerging digital techniques, services, functionality and business strategies have an impact on and disturb the valuation of a company’s existing facilities and products. These new aspects alter or upset the existing norm, requiring firms to examine the current demand for products and services and, if necessary, make adjustments.
If we look at the historical examples, today’s motorised vehicles displaced the horse and cart, mobile phones overtook landlines as the primary mode of communication and cashless payments are replacing cash transactions/
In most cases, digital disruption arises when a digital revolution, such as big data, machine learning (ML), the internet of things (IoT), or the bring your own technology (BYOT) new technology searches and trends, has been implemented.
The essential point is that digital disruption brings about change, which is a good thing for businesses and customers alike.
3 factors that enable digital disruption.
1. Advances in Technology
Non-stop advancements in technology are not only enhancing people’s lifestyles as a consumer, but they are also enabling people to work to be more accessible.
The advancement in mobile phone technology and capabilities have changed the workplace landscape with less of a reliance on the desktop computer. With many of us now working from home, businesses have been forced to rethink how their employees engage with the business and opportunities to digitise outdated manual processes.
2. Customer Expectations
The change of client expectations and behaviours is impacted by digital innovation, forcing organisations to adapt how they develop products and services.
Customers nowadays expect more variety, more technology, and more options, and they want it all provided as soon as possible. Today’s customers are wiser, more knowledgeable, and more selective, thanks largely to mass media, which has benefited from digital disruption.
Businesses are spurred on by digital disruption to adapt to the demand of today’s consumers by sitting ahead of the technology curves and implementing the latest innovations as quickly as possible.
Improved customer experiences lead to an increase in sales, loyalty and customer lifetime value.
3. Advancements in Intelligence
Innovation is one of the biggest factors in digital disruption. We have come a long way in recent years with significant advancement in the intelligence of collecting and analysing our consumers’ views, clicks and swipes.
Businesses need to evolve their services to interact with their customers across multi-channel environments. The intel captured about your customer can provide critical insights into their behaviours and interest, allowing businesses to target their customers with precision.
Through digital transformation you can:
● Increase customer satisfaction
● Create opportunities for new customers
● Grow your business and increase market share
● Improve workplace culture
The digital transformation of an enterprise allows it to keep up with changing client needs and, as a side benefit, to thrive in the light of the future. Because of this, businesses are able to compete more effectively in an economic situation that is continuously modifying in reaction to technological advancements. Successful management of the digital transition provides businesses with the opportunity to realize operational and productivity gains.
Evolve or Die
Any company that fails to recognise the importance of innovation and priorities digital transformation, will see their customers escape in favour of their competitors who do.
To put it another way, being one step ahead of your competition becomes an essential role in today’s digital-driven society. The failure to adopt digital technology has resulted in many companies being thrown into the scrap heap throughout business history. Look at Kodak. It was once the world’s most popular camera photography firm, but now that everyone is taking pictures for Instagram, it’s losing ground, and its earnings are shrinking. However, other businesses had recognised an opening in the marketplace and pounced on it. Even though Kodak emerged from bankruptcy in 2012 and is still in business, it is only a shell of what it could have become had it managed to grow with the time and market demands digitally.
Now that we know digital transformation is necessary, the evolutionary competition in business is about whose companies will lead the next transformation. Big data, artificial intelligence, and the internet of things can potentially transform the way organisations operate, and businesses need only look at the failures of companies who disregarded digital transformation as a trend.
In short, those businesses that don’t disrupt will be disrupted.