There is now an incredible array of tools and technologies available to businesses, and as technology continues to develop at an accelerating pace, new tools are becoming available all the time. Embracing these technologies allows companies to stay competitive, improve the services they offer, and drive growth.
However, truly embracing the latest technologies can require businesses to adapt in multiple ways and at many levels.
A solid digital transformation strategy is essential to make this transition as smooth as possible and ensure the company maximises the benefits of going digital.
What is Digital Transformation?
Digital transformation is essentially when companies adopt the latest technologies across all levels of their business, but it’s more than that. It is a comprehensive process in which the organisation embeds technology in ways that fundamentally change how they do business.
There are a range of ways that companies can transform digitally. Some examples include:
- Integrating AI in its customer interfacing, such as AI chatbots
- Redesigning supply chains using machine learning
- Introducing cloud computing to improve workflows
- Using DevOps and Microservices to continually introduce new product features
- Adopting Blockchain for international financial transaction
Digital transformation can allow companies to be more efficient, offer better customer service, and add value in a large number of ways.
Why Digital Transformation is Important for Companies
Digital transformation is relevant to every company operating today, from small businesses to multinational brands, and across every sector. It doesn’t just apply to the tech sector but any organisation that deals with customers or has a supply chain.
As the world becomes increasingly more digital, companies can no longer ignore the pull of digital transformation. Employees’ and customers’ expectations are shifting, and companies need to adapt to accommodate this, which means not only embracing new technologies but also new ways of thinking.
Furthermore, if companies do not adopt digital transformation, they’ll miss out on the many benefits and advantages that come with it. The latest technologies allow companies to be more flexible, more efficient, and offer better products and services, helping them to save money, drive growth, and meet their business goals. For example, automating business processes with AI technologies can allow companies to optimise workflows, boost productivity, and facilitate better decision-making.
Failing to do so means the business will inevitably fall behind their competitors, and see their customer base gradually disappear as they opt for companies who have more effectively implemented digital processes.
With global spending on digital transformation predicted to grow to $2.8 trillion USD in 2025, companies can’t afford to be left behind.
How Companies can Embrace Digital Transformation
Digital transformation is a complicated process that should encompass all aspects and all levels of the business. Here are some key ways that companies can lead a successful transformation.
1. Develop a Strong Digital Transformation Strategy
Digital transformation is a complex, long-reaching process that can be challenging to execute successfully. A strong, formal digital transformation strategy can allow organizations to align their technological goals with their broader business goals, anticipate and address pain points, and give them the best chance of success.
The most successful digital transformation strategies are closely aligned with the organisation’s strategic goals and objectives. Rather than starting with the technologies they want to implement, companies should begin by considering their key goals and objectives, then determine how they can use digital transformation to support these goals. In this way, they will develop a digital transformation strategy that will take them where they want to go.
2. Build the Right Talent and Skills
Any kind of transformation requires developing new talent and skills, and this is particularly true
For any organisation to be successful in digital transformation, they need to make sure their workforce has the right skills to adapt. You can’t expect people to effortlessly start using new tools, technologies, and processes without training them on how to do so.
Furthermore, this must start with the leadership, and flow through all levels of the team. In some cases, it may be necessary to recruit new talent skilled in emerging areas within the organisation. According to a McKinsey survey, organizations that demonstrated successful digital transformation had typically added a digital-savvy member to their leadership team.
3. Encourage a Cultural Shift
Working in new ways requires new approaches. Successfully embracing digital transformation means a change in company culture, most notably more collaboration, customer focus, and the willingness to take calculated risks.
Organisations should empower team members to make this shift by setting up practices within this new cultural framework, as well as reinforcing new behaviours. Positive reinforcement could include bonuses, awards, or giving extra responsibilities to staff members who successfully adopt digital processes.
Become a Digital Transformation Leader
With so many companies in the midst of digital transformation, they’re looking for professionals who can help them make this process as smooth and effective as possible. They want talent who can guide them in developing and implementing their digital transformation strategy, making professionals with these skills in high demand.