Digital Transformation puts technology at the heart of an organization’s products, services and operations – to help accelerate the business and competitively differentiate itself – in order to improve the experience for its customers. This is achieved through the use of smarter products, data analytics and continuous improvement of products and services through the use of software.
The massive shift in the speed of business, the data it generates and ready access to technology in our daily lives, is the hallmark of the fourth industrial revolution. For businesses, it is now a critical imperative to digitally transform – without doing so, businesses will fail to keep pace with their competition and meet their customers’ demands.
In order to digitally transform, organizations need to develop three competencies:
In doing so, businesses are able to gain insights about customers and the market, internal processes and even their own products, faster than ever before. They can use software to update their smarter, software-driven products and in repeatedly doing so, deliver an improved experience versus the competition.
What is Digital Transformation?
Digital Transformation is the trend whereby every industry and product is using digital technologies to provide better outcomes and experiences for their customers. From smarter cars that aim to become autonomous via software updates, to connected communities that share information instantly via social media, to the creation of entirely new industries, e.g. around industrial IoT.
This trend applies to not only companies born in the digital era but also incumbents who have been around for hundreds of years. It is an imperative for every business in order to be able to compete with upstarts who no longer have the same barriers to success because of the readily-available and low cost of IT needed to power the most demanding and innovative solutions.
Why should I consider Digital Transformation?
In order to meet the needs of the modern customer, organizations need to deliver exceptional customer experiences with their products and services. More often than not, these will require organizations to build new muscles around making data-driven decision, and the use of software to make products and services smarter. This is the reason behind the need for Digital Transformation.
Moreover, Digital Transformation is not optional. The increasing use of data analytics, the preponderance of smarter products that use software and sensors and the analytics required to sustain the cycle are being used by market leaders and disruptors. It is simply a choice to disrupt the status quo or be disrupted by the adopters of digital technologies.
Benefits of Digital Transformation
The ultimate goal of digital transformation is for an organization to be able to deliver a differentiated product or service to the market – whether through a capability that nobody else offers, or the speed with which one can offer it. In doing so, an organization becomes the trusted, go-to option for its target customers.
Another important benefit of the increased speed and agility that digital transformation affords, is that an organization can be nimble in the face of market conditions and opportunities. Gaining first-to-market advantage is undeniably important, but even more so in an age when consumers are used to getting what they want instantly and technology habits dictate stickiness with one vendor versus another.