What is Digital Transformation?
Fri, 09 Apr 2021
It’s hard to read a lot about modern business strategies without the idea of digital transformation coming up head to head. Hearing the sentence so many times can begin to dilute its meaning.
Digital transformation is the latest in a lengthy line of shifts focused on technology. How businesses relate to customers, and how businesses conduct processes, is changing.
The Industrial Revolution changed agrarian societies into centers of manufacture and changed the work people did and the living standards they could expect. Similarly, the Digital Revolution has changed the way people communicate, shop, and work. So, we’ll take a closer look at what digital transformation is.
What is Digital Transformation?
Digital transformation is the profound change that affects business processes, ecosystems, and models as they integrate digital technologies at all levels.
Sometimes people make the mistake of equating digital transformation with simply a technological update. Digital transformation means not only adapting to new technologies available but also changing customer expectations, societal shifts, and disruptions in the industry. In responding to these shifts, businesses need to become more customer-focused, more agile, more adaptive to new opportunities, and more efficient to remain competitive. Digital transformation is how those expectations can be met on a scale.
As businesses undergo digital transformation, to solve traditional business problems, they implement technology, processes, and big data. These digitized strategies and new business models open the potential for new revenue streams, new partnerships, and a wider brand reach.
Social trends driving Digital Transformation
Most shoppers look online for purchases
One of the most essential changes in consumer behavior is where people shop. Shoppers buy everything online, from clothing and luxury goods to toiletries and food. And shoppers are not just increasingly buying online, they are also using digital means to research purchases they make in-store.
Customers are shopping more omnichannel than ever
It makes sense that as people spend more and more time online, they end up doing more shopping there. But drilling down on exactly where they’re shopping is important. It’s not just at home on their computers, it’s on the go or even researching their phones while they’re in the physical stores. Businesses need digital transformation to ensure they connect.
Many brands need an online presence to show the value
Long gone are the days of looking to research a product through store windows. People want to see your website not only to get information about your products but also to get a sense of your brand. A well-made website not only creates a frictionless purchaser journey but also generally positive user experience.
Most of today’s work is done online
On average, people spend 24 hours online today out of every week. From work to shopping and maintaining social relationships, the digital time people spend is an important part of their work and personal lives.
Even B2B companies, which have traditionally had more of an offline presence than B2C, are increasingly moving into the e-commerce space. As more and more work is done online, companies need to digitize their brand presence to give customers the frictionless online experience they have come to expect.
Elements of Digital Transformation
- Integrating digital tech
- Improving customer experience
- Modernizing company culture
- Focusing on core business needs
- Strategizing based on tech/digital landscapes
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