Everyone wants to transform their business, and everyone knows that transformation primarily depends on leveraging the right digital technology at the right time on the right processes at the right cost.
What is Digital Transformation (DT)
Digital transformation (DT), Is the process of using digital technologies to create or modify new business Models and Processes in order to meet changing business and market Requirements.
Digital transformation and emerging technology adoption are inseparable partners. In the financial sector, digitalization is seen as a development of working methods and working environments.
The general consensus is that due to the continuous increase in Digital transformation (DT), customers will become more independent and that all working environment will change into a more digital environment, which may disrupt some traditional organizations.
Telecommuting and remote working from home will become more current and probable working method. In the future, digital skills are becoming more important and a necessity in the workforce.
Example Of Digital Transformation
Up until the middle of the first decade of the twenty-first century, the principal devices for accessing the Internet were personal computers and laptops controlled and used by people. This changed rapidly in the years that followed.
First came smartphones, which changed the way in which people consumed online services and even interacted with the world, leading to a profound impact on business practices and society alike.
Other computing devices followed the trend of becoming internet enabled, mainly for consumer electronics but also for significantly different devices in contexts such as manufacturing, transport and farming.
It was still a time when the number of devices more or less scaled linearly with the number of users and growth was mainly driven by market penetration and the accessing of new geographical markets. It was easy to tell what was connected to the Internet and what was not.
After first decade of the twenty-first century, something dramatic happened. Connections to the Internet started picking up beyond the linear scale with respect to people: connections became decoupled from people and machines and things started to take over, communicating with each other in addition to people. By 2017, 30 billion devices were linked to the Internet.
This transformation has already led, in numerous domains, to business models previously linked to physical objects and personally provided services being superimposed or even substituted by a dematerialized data economy (hybrid value creation) in the course of digital transformation.
Digitally provided services are thus increasingly in the foreground:
• Amazon delivers without being a producer,
Uber provides transport without having its own fleet,
Airbnb lets rooms without owning accommodation.
Benefits of Digital Transformations
A wide range of industries are pursuing DT: The digital revolution has touched almost all sectors and companies that effectively manage digital technology can expect to gain in one or more of these areas:
- Better customer experiences and engagement: In the digital age, we are moving to a world best described not by mass markets but by customer networks. In this paradigm, customers are dynamically connected and interacting in ways that are changing their relationships to business and to each other. Customers today are constantly connecting with and influencing each other and shaping business reputations and brands. Their use of digital tools is changing how they discover, evaluate, purchase, and use products and how they share, interact, and stay connected with brands.
- Streamlined operations: Though innovative new business models are what every CEO dreams of, companies more often see digital technologies help transform their customer experience or operations. Business model transformation is difficult, and far less prevalent, according to survey respondents.
- Marketing: New technological systems, referred to as embedded systems, give the ability to record, store and process data With the integration of Industry 4.0, embedded systems will become more commonplace for ﬁrms. All objects will, in time, be equipped with sensors/actuators, which will allow for them to easily connect to the internet, collect and analyze data. Production systems will become more ﬂexible and last-minute changes will become possible. Finally, different types of products will be more easily produced than before. This will also prompt the integration of consumers within the production systems.
Digital transformations globally has fundamentally changed our working world and will continue to do so.
Today, email (or chat) has completely replaced the classical letter for day-to-day written communications.
We may have grown up in a world in which companies broadcast messages and shipped products to customers. But today the relationship is much more two-way: customers’ communications and reviews make them a bigger influencer than advertisements or celebrities, and customers’ dynamic participation has become a critical driver of business success.