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HomeBlogs & NewsDigital TransformationWhat is Digital Transformation and Why it is Important?

What is Digital Transformation and Why it is Important?

importance of digital transformation

The Magic of Digital Transformation

In today’s world, technology is inevitable — this is true not only for individuals but for businesses too. Many companies nowadays have started embedding technology in their everyday processes to drive fundamental change. This practice is what we call digital transformation. There are various ways to implement digital tools. Different strategies work better for different businesses. Regardless of how you decide to use technology, the shift to digital transformation requires you to move away from traditional thinking. In this article, we will look a little more deeply at this phenomenon and consider some ways in which it can be beneficial.

What is Digital Transformation?

If you’ve never heard the term before, you might be wondering – what is digital transformation? Since each business is unique, it isn’t possible to have a catch-all definition of this term. But, as we said earlier, it involves using digital technologies to change how a business operates at its core. The core reason for digital transformation will differ from company to company. It could be anything from increasing productivity to reducing employee friction to improving customer experience. It could even be a mixture of different things.

Here are some digital transformation examples:

  • Tesla has used AI and predictive analytics to reduce costs and create more efficient supply chains.
  • Doxy. me – a free telehealth web-based system – has changed all their paper-based records to electronic ones, improving the ability of doctors to diagnose and treat patients remotely.

Whatever your goal, you must remember that digital transformation has two fundamental aspects. One is, of course, technology. For example, things like AI, cloud computing, and machine learning are all tools that have only become accessible fairly recently. But technology can’t do anything just by itself. This is where the second fundamental aspect comes in – people. Even with access to the best technologies available today, a business will not succeed if it does not have strong leadership and culture.

Scaling Innovation Through Digital Transformation!

Why is Digital Transformation Essential?

In short, it’s a matter of survival. Especially in the wake of the pandemic, it has become necessary for organizations to adapt quickly to changes in their supply chain and the expectations of their customers. For example, there has been a massive shift towards online purchases, even for things like groceries that were previously resistant to this change. Even after things settle down, people will likely continue to do their daily shopping online. Cashless transactions have caught on too, and every business needs to be prepared for that.

While it does depend on your business model and who your customers are, there are some benefits of digital transformation that are universal.

1. Better Data Collection

Even if you collect all the customer data available, you won’t be able to use it well if it is not optimized. You can use digital transformation to create a business intelligence system that gathers only the necessary data and parses it into insights about your customers, operations, production, finances, and so on. It is also important to consider the safety of your data – especially if you are collecting data from multiple customers. These days, people are increasingly wary of sharing their data because of concerns over how it is stored and used. You should show your customers that you respect their privacy by utilizing a high level of security and by giving them the chance to opt out whenever they wish.

What is digital transformation

2. Stronger Resource Management

This is made possible only with the help of better data collection and analysis. You can use digital transformation to consolidate all your business’s applications, databases, and software into a centralized suite of tools. Digital transformation is not a function of any one department. Instead, it is an overarching concept that allows employees from all departments to have access to the data and tools they need to do their job well.

3. Improved Collaboration

When everyone has the right tools, it becomes much simpler for people to collaborate. Your employees will be able to work collectively in real-time, regardless of where they are physically located. By being able to work together seamlessly, it makes it easier for the entire company to move forward digitally. The digital culture also encourages employees to upskill themselves and make the best use of the tools available to them. Thus, digital transformation is an excellent way to enable your workforce.

4. Better Productivity

Naturally, if your organization’s workflow is streamlined, you will be able to produce goods and services much more effectively. Digital transformation also allows for several manual tasks to be automated, which leads to an increase in the amount of time employees can spend on actually adding value to the business. Digital transformation can also help companies become more agile, and improve their speed to market.

 5. Enhanced Customer Experience

If all the other aspects of a business are improved, it is almost a no-brainer that customer experience will improve as well. With the help of digital transformation, you can unlock customer insights that you might have missed before. This will allow you to create more customer-centric strategies that will ultimately drive business growth. In addition to digital experiences, it is important to improve your communication with your customers. You can use digital transformation to enhance your customer service. For example, you could implement AI chatbots that will always be available to respond to your customers’ basic queries. You can also use it to track when most of your customers are online and make sure you have representatives ready to engage with them.

Scaling Innovation Through Digital Transformation!

Do You Want to Embark on Your Digital Transformation Journey?

iTrobes is here for you. We are a leading software company and we offer our digital transformation services all over the world. We assess and address the needs of your business by helping you with everything from conceptualizing your shift to building and managing your infrastructure. Our seasoned professionals can help you build the framework that is perfect for you. Contact us today to begin your journey!