Posted on: November 10, 2016
By now, you’ve probably heard the words “Digital Transformation”, or “DX” tossed around in conversation. Maybe you’ve even used these words yourself… but do you really know what it means? Take a moment to ask yourself, what is digital transformation, really? Is my business embracing digital transformation? If we’re not, should we be?
These are all essential questions that enterprises need to be able to answer. So, where do you stand? By the end of this post, you should be up to speed.
Digital Transformation Defined
Digital transformation is more than just making sure that your office is equipped with the latest Microsoft devices and operating systems. Instead, digital transformation is an all-encompassing process that involves the changing and altering of all business activities, processes, methodologies, and competencies in a way that fully leverages the opportunities created by new digital technology, as well as their impact upon the world in both a strategic and prioritized way. It recognizes the ways in which technology is capable of better handling tasks that were tackled manually or otherwise in the past, and streamlines these processes in ways that make better business sense for you while working to the benefit of your clients. In other words, it is not mere acceptance of technology; it is complete transformation.
The Growing Need for Digital Transformation
As any successful enterprise is aware, organizations must be willing and able to evolve as a means of addressing the changes within the business landscape. This means that as the rest of the world changes and adapts to technological advancements and changes, so must the business that wishes to remain relevant and functional. After all, failing to do so could mean interruptions to workflow and, eventually, to lost business opportunities and closing doors. And because technology advances almost as quickly as we get used to the latest digital trend or gadget, businesses really have to be on their toes if they hope to fully leverage the opportunities that digital tech have to offer.
So what, exactly, drives digital transformation? Three key factors play a role:
- Technological Innovations — When new technologies are invented or innovated, we are faced with what are known as “technology disruptions.” Here, businesses must assess what the new technology actually has to offer. How is the tech adapted and used? How will it add value to the organization? How easy will it be to adopt the technology and phase out the old? How will the tech work to the benefit of customers? All of these questions must be addressed before enterprises can make a decision about whether to adapt and transform their methods based upon the new technology or stick to the status quo.
- Customer Behavior/Demand — Of course, customer behavior and demand will also play a role in determining what new technological innovations to adopt. Today’s clients expect fast results, ease of use, and intuitive technology. Understanding these desires and expectations help businesses to determine which tech should be considered in the transformational movement.
- External Environmental Factors — Lastly, external influences like regulatory laws, a competitive market, and changes to the economy can play a role. If an old method of performing a task is outlawed by state or federal regulations, for example, the business has no choice but to adapt and transform, adapting to new technological innovations.
Well, what’s in it for you? Digital transformation isn’t a painful or pointless exercise. According to a recent study commissioned by Forrester Consulting, the key benefits associated with digital transformation include:
- Increased Profitability
- Increased Speed-to-Market
- Improved Customer Satisfaction
With digital transformation, everyone wins. To learn more about the process, feel free to reach out to one of the experts at Uncommon Solutions