Digital transformation is imperative for all businesses. It comes out clear from the keynote messages, panel discussions, articles or any study related to firms to remain competitive and relevant with the world becoming digital. But wait a minute, many business leaders are still not clear what digital transformation means. Before embarking on any technological shift, it is critical for everyone – from CEO to middle-level management to know the answer to this question.
What is Digital Transformation?
Since digital transformation is different for every company, it is not easy to define it. But in general terms, digital transformation is defined as the integration of technology into all aspects of the business. The way organizations’ interact with their employees and customers can be made more efficient using technology. The digitization of internal and external processes to improve business operations and combat the disruptions – like COVID pandemic, could be most helpful. It is also a fundamental business transformation that comes as a result of a change in customer behaviour.
Why Digital Transformation Matters?
Digital transformation matters for several reasons, but by far, the most important reason is the survival issue. To remain competitive in a digital environment like this, organizations need to develop technological capabilities, transform business processes and bring innovative products and services for its customers. To lead your organization towards digital maturity, influential business leaders need to be adaptive and agile. They need to be capable of reacting to rapidly changing customer expectations, making data-driven decisions, coordinating supply chain disruptions and being innovative and curious. Digital transformation also helps achieve the following objectives,
- Improving business agility, boosting customer satisfaction and enhancing efficiency
- Making data-driven decisions on market trends and customer expectations
- Establishing new revenue streams through enhanced digital experiences
- Finding new ways to innovate to meet customer needs
- Increasingly interconnected world
The primary goal of the smooth adoption of digital transformation is to have a measurable impact on your business through effective management of the change process.
Steps to Digital Transformation
Although digital transformation varies widely based on organization’s demands and challenges, there are a few steps that all digital business leaders need to consider before embarking on technology transformation. For instance,
- Identifying Key Drivers for Change
Transformation of any kind is specific to organization’s operations and should include the following,
- Finding new revenue services
- Improving customer service
- Enabling operational agility
- Integrating digital technology
- Cutting down costs
- Defining Strategic Priorities
The digital transformation helps establish Key Performance Indicators (KPI) to harness creativity and innovation.
- Using Technology to Define Organizational Maturity
Digitally mature organizations leverage data and business intelligence better to understand their customers’ preferences, requirements and habits.
- Introducing Agility into Organizations
The typical characteristics of digital transformation include iteration and agility, responding to change and realizing benefits as early as possible.
Technology Enabling Digital transformation
Technology has brought changes in the way of how people interact with products or services. The drivers of these changes are around digital and which is why organizations need to consider digital transformation. The technologies driving the digital transformation are Data Science, Artificial Intelligence (AI), Analytics and Automation. Integrating digital aspects into businesses requires vision and leaders to develop organizations’ digital capabilities successfully. It grows significantly and provides a scalable and efficient way of building infrastructure.
This is exciting for you, there is much more to be learned from digital business leaders who have already begun their journey by enrolling into IIM One-Year courses in digital enterprise management. The One-year MBA in Digital Enterprise Management by IIM Udaipur provides its students with greater efficiency and accuracy to digitally lead their firms. Digital transformation is a strategic priority aligned with customers’ demands and resilient in the diverse digital environment. For more insights enrol into the one-year course offered by IIM Udaipur. Apply Now!