One of the most hotly discussed trends in business and the field of information technology (IT) is Digital Transformation. The demand for digital transformation has been growing over the years, and a particular boom in demand can be attributed to the pressures that Covid-19 have placed on modern businesses.
But what exactly is digital transformation? And why are companies so eager to implement it? TechQuarters, an MSP that provides IT support services in London, has been helping their customers digitally transform their organizations for a good few years now. The consensus among tech companies like TechQuarters is that it is inevitable that businesses will have to go through the process, seeing as how technology is becoming more and more interlinked with work and business.
What is Digital Transformation?
Digital Transformation is the adoption of modern technologies and digital solutions that make an organization more mobile and agile, thus making them better equipped to adapting to challenges and pressures placed on the business. Digital transformation as a term gets thrown around along with phrases like ‘digitization’, and ‘digitalization’ – while these might all seem like buzzwords, or even jargon, they do all have real definitions and are fairly relevant to each other.
Digitization – this is the process of converting physical data into digital data. For example, transcribing a printed record would be an example of digitizing data. Digitization would definitely play a role in the Digital Transformation of a company.
Digitalization–this is where a business implements digital solutions and digital information to make working easier and more efficient. An example might be using a e-signature software such as Docusign. While this process does involve adopting digital technology, it does not have the same scope as Digital Transformation.
Digital Transformation–when a business completely overhauls their infrastructure in a way that transforms the way they conduct their business, it is known as a digital transformation. They will most likely partner with an IT managed services company to help them through the process. Many businesses undertake a move to the Cloud when they digitally transform; they might also go about modernizing their IT infrastructure, and implementing technologies such as business process automation to streamline workflows, or setup Cloud telephony to make communications more agile.
Why Digital Transformation?
As technology becomes more and more critical to the success of businesses, companies will have to rethink the way they do business. There are many traditional practices that are being replaced with modern, streamlined solutions, and if a business fails to adopt them, they might risk falling behind their competitors. Updating business processes and workflows with the help of technology has a wealth of benefits in a number of different areas.
Better Customer Experiences
For a customer-facing business, one of the biggest incentives to digitally transform is in order to make the customer experience better. There are all kinds of technologies that are enhancing retail experiences, for example – such as virtual shopping, smart changing rooms, and self-scanning and checkout in supermarkets. As well as this, AI is being used to make customer service cheaper and more efficient.When a business goes digital, it makes a lot more sense to start implementing cutting edge solutions such as these. Plenty of businesses leaders cite enhanced customer experiences as a key factor in considering digital transformation.
Going digital means that you will be producing a lot more data internally. The data you have might be related to customer habits, market trends, key demographics; and you will also begin generating lots of data concerning internal performance of employees, software, network, and plenty of other systems. This data can be processed and analyzed to produce hard insights into the business. With these insights, a company will be able to make much better and more accurate decisions on the direction of the business.
Digital transformation results in a more mobile and agile business. A great example of this is the increased collaboration it creates between employees. When a business digitally transforms, it usually means a move to the Cloud, modernizing their IT, implementing unified communications, and much more. What this results in is a more connected business, and a more connected business means employees will be able to communicate and collaborate with one another much more effectively.