As evident from the title, the Digital Transformation is the integration of digital technology into all areas of a business, in such a way that it fundamentally changes how you operate and deliver value to your customers. It’s also a cultural change that requires radical rethinking of how organisations need to continually challenge the status quo, innovate, and get comfortable with failure.
Digital transformation should not be confused with digitisation or digitalisation. Digitisation is a much narrow concept which refers to converting analogue to digital and thus potentially reduce cost and time. Digitalisation also only refers to using technology to aid the evolution of the business model. Digital Transformation, however, is a much broader term which incorporates cultural changes along with digitisation and digitalisation.
Having understood in detail what digital transformation is, we should know what digital transformation brings to table and how it can be a definite game changer for any kind of business. Digital transformation at its heart encourages innovation, rethinking of business model and enhancement of core competencies. It helps enhance customer experience and hence increases customer retention. Outcomes are more data driven, thus paving ways for increased profits and substantially better Return on Investment (ROI).
Digital transformation enables better collaboration across departments and helps improve alignment to company goals rather than just departmental optimisations. It helps companies improve their supply chain flexibility, making it agile. With introduction of smart solutions, the operations become resilient and thus help achieve better results. Also, cloud-based solutions offered because of digital transformation ensure high information security.
Digital transformation also brings in a positive cultural change. Behavioural skills of employees are enhanced, the focus is shifted towards innovation, proactive problem solving and practical solutions. It encourages keeping pace with emerging technologies and increases data literacy. With digital transformation, all these can be achieved through remote learning – virtual training programs, webinars. Thus, weathering the impact of pandemics like COVID – 19.