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WHY DIGITAL TRANSFORMATION MATTERS

June 24, 2017

The most probable reason a business may undergo digital transformation is because they are bound to. Digital is a data-driven enabler for success. It can streamline processes and the accompanying effort required, whilst expanding capabilities. The world’s biggest companies are undertaking digital transformation projects, and many have chosen 2020 as their deadline.

Every organization will have to embrace digital transformation at some level to remain competitive. There can be many manifestations of digital transformation, including using ubiquitous, real-time data and algorithms to processes flexible and autonomous workers. Modern processes and technologies help reduce operational overhead, enabling businesses to invest less in maintenance and more in innovation that supports rapid change.

Adopting new technologies in a business is critical to drive digital transformation. However, 48% of business owners are still reluctant to adopt new digital technologies due to a lack of understanding of how it works and the potential benefits.

Digital Transformation makes two models coexist in the organization. One aiming at securing and optimizing current operations, the other at exploring new business territories. According to McKinley, 90% of all marketing roles now require digital skills. Today technology impacts strategy, there’s not a digital strategy but a strategy for a digital world.

Global management consulting firm McKinsey and Company focused its research on understanding how digital transformation drives business value. Larger companies recognizing the strategic necessity of digital transformation, often face a harder road to digital integration. McKinsey’s research concludes that companies should fully embrace digital transformation but should do so in a manner and degree that maximizes their unique business opportunity.

Another form of digital transformation that is becoming more prominent is content transformation. It’s essentially companies moving several of older assets and moving them online. For instance, a leading Switzerland-based publisher sought to digitize issues of its daily newspaper published from 1895 to 1974.
The project involved scanning hard copies, OCR, and converting the files to XML, PDF, and uncompressed TIFFs and microfilms. A dedicated and experienced team that operated on a blended shore delivery model was established. Resources were deployed to scan hard copies at Switzerland and Germany. The scanned images were sent and converted into machine-encoded text (OCR), Meta data (XML), master TIFF images, PDFs, and JPGs. Quality of data ranged from 99.995% to 99.997% accuracy, which exceeded client expectations.

The top benefits that digital transformation brings to organizations are:

•    Greater cost reduction – Digital tools and technologies have already had a profound impact on the global economy. The introduction of cloud-based solutions and technology solutions can help to drive more revenue
•    Improved financial performance and profitability – Specifically, companies implementing technology solutions have experienced 39% growth in revenues and have improved their time-to-market by 21%.
•    Employees are 39% more efficient, more productive, take less time to make decisions and are more satisfied.
•    The customer experience is improved. In fact, customer retention levels have risen by as much as 33%.
•    Technological transformation facilitates companies to recruit the best talent, as specialized professionals are attracted by the job opportunities offered and by the corporate culture itself.

Digital transformation is no longer a buzzword, its reality. Digital transformation drives business growth. The results of digital transformation are already concrete. The impact of digital transformation helps companies from all over the world surpass their competitors and increase their competitive capacity.

 

Sources:-

  1. https://www.marketingweek.com/2016/04/14/what-does-digital-transformation-really-mean/
  2. http://sloanreview.mit.edu/article/the-nine-elements-of-digital-transformation/
  3. https://hbr.org/2017/05/how-the-meaning-of-digital-transformation-has-evolved
  4. http://www.duperrin.com/english/2017/01/05/digital-transformation-2017-dreams-and-miracles/
  5. Image Credit: Freepik/Pexels/Shutterstock
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