In this article, we recap some of the benefits surrounding the implementation of digital business transformation for companies, as well as some things to consider for a more effective digital transformation adoption.
In our previous articles, we’ve established the necessity of digital transformation for businesses to streamline operations, boost customer engagement, and expedite business solutions. But the concept of digital transformation itself can be tricky to define, which can often lead to fragmented strategies for implementing it.
Fundamentally, digital transformation affects every area of a business, and as such can be a necessity for innovating and adapting a business, as well as measuring up against the competition. Tech Republic states that the COVID-19 pandemic forced many companies to undergo rapid digital transformation, noting in a report that 90% of companies who failed to successfully adopt digital transformation strategies lost business.
The path to digital transformation looks different for every company. IT Pro Portal suggests that different forms of technology innovation exist, marking a difference between digitization, digitalization, and digital transformation. According to the article, digitization comes from changing analog processes to digital without any ‘different-in-kind changes to the process itself’, while digitalization describes the ‘use of digital technologies to change a business model and provide new revenue and value-producing opportunities’. Ultimately, though, the concept of digital transformation goes further than these definitions. According to Gartner, digital transformation can mean “anything from IT modernization, for example, Cloud computing, to digital optimization, to the invention of new digital business models” and that it is ‘the process of fully benefiting from the enormous digital potential in a business’.
Other things should be noted when considering an effective approach to digital transformation. For example, an article from TechCrunch states that digital transformation is dependent on diversity and thus ‘relies on the limitations of human-programmed AI’. If a company’s technology is only as good as the people that program it, then companies need to ensure diversity and equality in their workforce. According to the article, having a diverse workforce reduces the ‘risk of limitation and human error’ in order to successfully implement digital transformation.
Meanwhile, there are also security concerns to consider when facilitating digital transformation; a report from BizJournals states that although ‘organizations that embrace digital transformation outperform their competitors in profitability, revenue, and market value’, many organizations also run the risk of losing money and customer trust due to the risk of cyberattacks. Increasing certain digital transformation processes like cloud development thus must be considered in tandem with increasing security.
Ultimately, there is no one-size-fits-all approach to achieving digital transformation. There are different benefits to accelerating digital transformation within a company, but every business needs to assess its individual goals and desired outcomes of digital transformation to determine the best strategy.