How does digital transformation help businesses grow?
Digital transformation is one of the types of new technologies in the company’s business processes. They are mainly used for the development of business activities and its changes. And due to this, it becomes more efficient and more profitable.
This transformation is aimed at improving the quality of service through the latest technologies. And recently, the introduction of social networks into the business sphere can be called a revolution.
Due to the revolutionary transition, companies have gained a great advantage over their competitors. At the moment, many processes are running quickly and efficiently. Others can lead to a long transformation, and at which distance can provoke a negative effect. For example, when some customers refuse due to unwillingness to accept innovations. However, the right approach to digital transformation and the introduction of effective tools will help to “digitize” the company and expand opportunities
Why is business undergoing a digital transformation?
Digital transformation is growing at a rapid pace and a few years ago the business was promoted exclusively locally. And advertising was distributed only through newspapers, advertisements and the distribution of business cards. But after a certain period of time, websites appeared, and the business began to enter the Digital space. And in parallel, he put forward advertising on television. AI and machine learning are also actively developing.
According to various analytical companies, today, many companies have begun to actively introduce AI into business. Also, we would like to note that many have started or are planning to carry out digital transformations and start using AI in the near future.
Why is this happening because of digital transformation?
Here are a few reasons:
Such technology as digital business transformation is a long and complex process. And it is almost impossible to carry out this process independently, so the help of specialists is required here.
What is the digital transformation of a company?
Yes, this topic has already managed to fill everyone’s teeth. However, many still mistakenly believe that digital transformation is simply the creation of websites. Of course, the website is the most noticeable part of the departure of the business into the ”digital”, but that’s not all.
The main essence of transformation lies in the changes that affect the device and processes of your company. At the same time, you may not even have a website for customers. But automation and optimization of processes will take the company to a new level.
The main task of digital transformation is to make business management even easier and more efficient. So that most routine tasks are performed automatically. This way your employees will be able to focus on more important strategic tasks.
An integrated approach brings the greatest effect when you transform all processes.
Advantages and disadvantages of digital transformation
Digital Transformation technology
- Modern CRM, ERP, WMS, TMS, SAAS and database tools. These are systems that help you manage certain areas of business: customer relations, resources, warehouse, transport, data. There is even an opportunity to use your software as an additional source of income.
- Advanced analytics. The data you have is a very valuable asset, you can’t let it disappear aimlessly. Thanks to the tools, you can use them to track the effectiveness of your processes. This way you will be able to find shortcomings in the company and correct them, improve them and turn them into advantages.
- AI and machine learning solutions. Artificial intelligence is becoming increasingly popular. After all, this is an opportunity to entrust decision-making to a machine. Which is constantly being trained based on your own data. The effectiveness of training and the correctness of decision-making depends on the amount of data. The more information there is, the easier it is for the algorithm to make accurate and correct conclusions.
- Internet of Things. The use of devices placed in the places you need: on a person, on the ground, on equipment or transport. To obtain the necessary information, make forecasts and make decisions. For example, in medicine, this technology is used to track the condition of patients and make diagnoses. In logistics – to monitor the condition of machines, in the agricultural sector – to obtain information about the weather and soil condition.
- Robotics and Process Automation (RAP) – robots have been performing a lot of repetitive simple processes for a long time. Their implementation in the work of your company can increase its efficiency at times. Of course, such a transformation also implies the development of special software for controlling robotics.
Key stages of digital business transformation
- Definition of the transformation area. First of all, it is necessary to set a clear goal. What exactly do you want to transform? How deep? The task needs to be solved and what goal should be achieved? Without specific answers to these questions, you will not be able to achieve results. This means that all efforts (and resources) will be wasted.
- Budget definition. When you have decided what exactly you need to digitalize, you can also talk about the budget for the “figure”. This may not be easy, so we recommend that you first familiarize yourself with possible solutions and their cost. Estimate the payback and profitability of their implementation. Specific cases in your niche can help.
- Development of a route map. Everything is simple here, if we depict all our planned steps graphically, then we will get a route map. But having specific initial data, the digitalization map can be detailed.
- Selection and implementation of digital solutions. You will have to decide which solutions and tools you will use for your transformation. Then find a contractor who will create them for you and bring the plan to life.
- Training of employees to work with new technologies. Your staff will have to master new processes and digital tools, it will take time and certain resources. And your task is to organize the transition process competently.
- Rejection of outdated technologies. Perhaps you have already had some point solutions, or tools that have not shown effectiveness. Sometimes they can be integrated with new solutions, but in general it is better not to stick to the old and switch to modern platforms as soon as possible.