Digital transformation. What it is and its importance and relationship with the Business
As a first definition, we could say that digital transformation is the application of digital capabilities to processes, products, and assets to improve efficiency, improve customer value, manage risk, and discover new revenue-generating opportunities.
By digital capabilities we mean those that are electronic, scientific, data-driven, quantified, instrumented, measured, calculated, and quite possibly automated.
1. What is digital transformation?
Digital transformation is the integration of digital technology in all areas of a company, fundamentally changing the way it operates and provides value to its customers. It is also a cultural shift that requires organizations to constantly challenge the status quo, experiment, and be comfortable with failure.
Digital transformation can involve reworking products, processes, and strategies within the organization by leveraging digital technology.
As such, digital transformation requires an examination and reinvention of most, if not all areas within an organization, of its supply chain and workflow, the skills of its employees as well as board-level discussion processes. management, customer interactions and their value to stakeholders.
Digital transformation helps an organization keep pace with emerging customer demands, maintaining them well into the future. Digital transformation enables organizations to better compete in an economic environment that constantly changes as technology evolves. To that end, digital transformation is necessary for any business, non-profit organization, or institution seeking to survive in the future.
Key technologies
Technology drives the need for digital transformation and supports the digitization of an organization. In addition, there is no single application or technology that allows digital transformation, but there are multiple key processes that an organization must generally have to face the transformation:
Cloud computing, for example, gives your organization faster access to the software it needs, new features and updates, as well as data storage, and enables it to be agile enough to transform.
Information technology enables an organization to focus its investment of talent and research and development money on customized solutions that support its requirements and the processes that differentiate it in the marketplace.
Mobile platforms allow work to be done wherever and whenever.
Machine learning and artificial intelligence technologies provide organizations with insights to make more accurate decisions about sales, marketing, product development, and other strategic areas.
Other technologies driving business transformation include blockchain, augmented reality and virtual reality, social media, and the internet of things (IoT).