What is Digital Transformation?
Talking in the simplest of terms, digital transformation is nothing but the changes that move an organization from the conventional to the digital realm. It means embracing the changes that technology brings about to the business models. Without undergoing a digital transformation, you can’t hold on to your section of customers for long.
Defining concisely, digital transformation refers to all the changes that are associated with the application of digital technology on all aspects, operations and methods of a business. It is important to understand what transformation means here. Transformation points to a fundamental, whole-scale change to the very foundational components of the enterprise, starting from its infrastructure to its operating processes, from what it sells to whom and how it sells. The “Digital” part of the transformation signifies harnessing the combined powers of: social media, analytics, mobile and the cloud-in order to bring about a change in the current state of business.
What is Digital Transformation aiming at?
Digital Transformation is not a choice anymore- it is a necessity. To keep a place in the competitive market, it is mandatory for the enterprises to keep pace with the technological disruption.
Businesses have to embrace new online marketing channels, bring about new digitally-evolved products to the market. It is also important to refresh the value propositions of their offerings and utilize the cloud technology to improve their business. It is only through Digital Transformation that enterprises can reach out to new sets of customers and retain their existing one.
Let us check the example of HMV. It was one of the premier sellers of CDs and DVDs. However, they chose continuing to base the business model around in-store customers. But, consumer demand monumentally shifted in favour of digital downloads and online streaming. This resulted in the shutting down of HMV. By the time they re-invented themselves, the market had already been taken by Netflix, iTunes etc.
Not only in retail, but Digital Transformation has revolutionized the way businesses perform in different sectors like financial services, telecoms, media, marketing, defence, travel and leisure, only to name a few.
So, to sum it up, Digital Transformation is trying to save all businesses from meeting their doomsday, like HMV did!
Advantages of Digital Transformation
Let us look at some of the key areas where Digital Transformation needs to be embraced by the businesses to sustain themselves in the market.
- Streamlined workflow and operations
- Digitized assets
- Improved insight into management and marketing decisions
- Disappearance of any middle-man
- Data analysis
Businesses that need Digital Transformation are those that have not kept up with the pace of market, technological and competitor evolution. Implementing modern systems and technology would aid businesses in the market research, production and subsequent sign-off of all new services, campaigns and products.