What Is Digital Transformation?
Digital transformation refers to the process of using technology to change the way a business operates, improve its efficiency, and better meet the needs of its employees & customers. It involves integrating digital technologies like software, hardware, and data analytics into a company’s operations to streamline processes and improve decision-making.
For example, a retail store may use digital transformation to create an online store, allowing customers to shop from anywhere and providing the business with valuable data about their shopping habits. A hospital may use digital transformation to implement electronic health records, enabling doctors and nurses to quickly access patient information and improve the quality of care.
Overall, digital transformation is about using technology to drive innovation, improve employee & customer experiences, and create new opportunities for growth. It is a key consideration for businesses in today’s digital age, as technology continues to play an increasingly important role in how we live, work, and do business.
This article will explore the evolution of digital transformation from the onset of COVID-19 and its aftermath, including the emergence of the “new normal,” the Russian-Ukrainian conflict, and the economic recession. Additionally, we will look ahead to how digital transformation may continue to shape the business landscape up to the year 2023.
Why Is Digital Transformation Important?
Digital transformation is essential for companies looking to remain competitive in today’s rapidly evolving business landscape. It enables organizations to streamline processes, improve customer experiences, and make data-driven decisions that can help them achieve their strategic goals.
How COVID-19 Pandemic Impacted Digital Transformation?
After the Covid-19 pandemic, many organizations began embracing digital transformation. Global trends indicate that customers expect companies to offer digital services as more people become tech-savvy.
During the pandemic, there was a massive increase in online shopping. Business leaders invested heavily in automation platforms to improve their online customer experiences. These digital platforms created a seamless interaction, allowing customers to receive support from online chatbots, view all their account information online, and order products remotely at the click of a button.
Even after the return to in-store shopping, customers still flock to online services for convenience. This is just one of many examples of digital transformation creating lasting change across industries.
Other trends within the workplace indicate a shift in employee attitudes to work. The pandemic caused a surge in mental health issues related to work-life balance. Companies have taken different approaches to integrate workers back into the office. But Gartner’s research on 9 Future of Work Trends Post Covid-19 shows that ‘75% of hybrid or remote knowledge workers [agree] their expectations for working flexibly have increased.’
Many employees feel a sense of betrayal because they don’t want to return to the office. Employers make the wrong decision by forcing staff back to the office when they aren’t ready. Looking past the pandemic, it’s clear that employers will need to prioritize a strong support network for their workers.
4 Key Areas Of Digital Transformation
Every change leader has a different approach to digital transformation. However, many agree that digital transformation consists of four main areas. Enabling enterprise digital transformation requires a holistic approach, targeting all areas simultaneously. Those areas are:
- Improving customer experience (CX)
- Enhancing business operations with data & analytics
- Innovation through cloud computing
- Empowering employees with mobility
How To Get Started On Your Digital Transformation Journey?
Many business leaders feel the need to update their company’s digital technology capabilities, especially after the pandemic shifted everyone’s focus to online orders and remote work. Now, businesses view digital transformation as a requirement. But how do you begin your transformation journey?
Before investing in expensive digital solutions, you need a comprehensive plan. The success of any organization’s digital transformation strategy depends on its program. Without a comprehensive plan, you risk your transformation falling apart at the first hurdle.
A digital transformation plan should focus on the following areas:
- Cost. How will you keep costs low while getting maximum value from technology investments?
- Risk. Identify potential risks early to reduce the likelihood and mitigate any impact.
- Application. Evaluate the application of new technology. Is your digital transformation initiative addressing redundancy, criticality, and business value?
What Is A Digital Transformation Framework?
A digital transformation framework is a set of guidelines for achieving meaningful organizational change. Frameworks are like blueprints that digital transformation leaders use to help companies thrive in the digital era.
A digital transformation framework provides a proven method for leveraging new technologies to provide better services for customers. Frameworks are beneficial for organizations that are unfamiliar with digital transformations.
They include key performance indicators, standards, and checklists that digital businesses use to secure their place in the digital economy.
What Roles Drive Digital Transformation Projects?
Creating the right team of talent will determine the success of your digital transformation project. From IT experts to customer service specialists, which are the best roles to prioritize?
Digital transformation significantly impacts the status quo and often leads to employee resistance. To address the problem, your company needs the expertise of a change manager. Change managers are experienced in leading transformations and affecting positive growth. They take a targeted approach to affecting change, enabling personalized training and support.
Customer Experience Experts
Every digital transformation project should lead to an improved customer experience transformation. Their role is to optimize, measure, and drive effective customer experience strategies. They work with data analysts to retrieve essential customer insights. They focus on emerging market trends, customer expectations, and ways to impact revenue growth.
Digital Product Managers
A digital product manager is responsible for leading the production of digital products to market success. These products include apps, software tools, and other digital solutions. The role of a digital product manager involves delivering products through digital channels to improve the user experience.
Cloud Security Specialist
Securing a cloud-based solution is much more complex than handling your current data servers and requires the input of a cloud security specialist. Your organization remains vulnerable to breaches and attacks without the right cloud security talent.
What Digital Technologies Drive Digital Transformation?
Digital technologies are at the core of digital transformation. Investing in smart technology is a complex process that requires a targeted approach. Business leaders must know how each technology impacts specific business areas to achieve desired results.
Here are 4 emerging technologies currently driving digital transformation in 2023:
- Internet of things
- Robotics process automation (RPA)
- Machine learning
- Artificial intelligence
Digital transformation ROI: How to measure it?
Digital adoption platforms (DAPs) can provide valuable insights into the impact of digital transformation on your organization, and help you measure the ROI of your investment in digital tools and technologies. By tracking key metrics and using data to inform decision-making, you can ensure that your digital transformation initiatives are delivering value and driving business growth.
What Does Digital Transformation Look Like In 2023?
Digital transformation is a high priority for ambitious companies in 2023. The pandemic forced digital transformation leaders to increase their efforts. Technologies such as artificial intelligence, cloud computing, machine learning, and other digital tools are at the forefront of global digital transformation initiatives.
Here are the digital transformation trends you can expect to see in 2023.