Why is digital transformation important
Digital transformation is taking place at a rapid pace. It is not a new phenomenon, but it has become more important in recent years because of the need to adapt to changing times and needs.
One thing remains constant in Digital Transformation: it’s not stopping or slowing down anytime soon. The global pandemic made clear that digital’s role in organizations is more important than ever. To emerge as a strong company and emerge from the pandemic stronger, digital investments must be prioritized and rethink the normal ways of working.
The digital transformation happens when traditional business models are disrupted and replaced by new ones that leverage digital technologies. It encompasses a process of change where companies in all industries are transforming their business models into the digital world.
Digital transformation brings about better customer satisfaction and increased productivity levels among workers, with cost savings for companies. The digital transformation has enabled many positive changes such as time-saving conveniences, greater connectivity with friends and family members, easier access to information, etc.
It is no secret that the digital world has changed the way we access information and our daily lives. Digital transformation is a multifaceted change which can have a significant impact on businesses, individuals, and societies.
Three different ways to digitize - digitization, digitalization, and digital transformation
In digitization, the tasks from the process of making something from physical matter is replaced by a digital version. In digitalization, the tasks are turned into software to be used in a computer-server-based system that uses information technology as its primary mode of operation. Finally in digital transformation, the processes are changed and optimized to take advantage of new technologies like AI and machine learning.
Digital transformation doesn't only mean changing processes but also changing them for better business outcomes. When starting with a solid foundation built on top of an intelligent software system that includes predictive capabilities like AI and machine learning, businesses can expect improvements like efficiencies (i.e., reduced costs), reduced risk (reduced variability).
Why is digital transformation important?
Enhanced customer experience
The key to success, as every business knows, is to provide the customer with a better experience while they are using your product or service. As technology advances, customer experience is changing too. With digital transformation happening at an accelerated speed, it is imperative for businesses to provide the right customer experience to stay relevant and successful.
Enhanced customer experience is the central focus of many organizations today. This improves revenue cycles and lets them grow their businesses exponentially by providing a better service or product than their competitors.
Data-driven customer insights
Digital agencies use data analytics and machine learning to develop customer insights. This process has led to more effective communication with customers, greater brand loyalty and improved revenue.
The rapidly changing digital landscape requires companies to be more adaptive than ever before and is creating a demand for a skilled workforce that handles data-driven customer insights in the digital space.
The rise of digital transformation is creating opportunities for people with data-driven customer insight skills, who can plan and implement innovations that augment existing products and services.
Through digital transformation, employees get the benefits of improved productivity. It allows them to have more time and focus on tasks that are more meaningful to them.
Digital transformation provides better tools for employees to use to achieve their creative goals and solve complex problems than traditional approaches like paper-based systems. By freeing up their time so they can focus on what matters to them, digital transformation also helps improve their overall quality of life.
Digital transformation is all about innovation and progress, which can often be achieved through digitization. Companies need new tools and technology that will help them cope with the challenges of the future.
Need of Chief Digital Officer and Chief Data Officer
Chief Digital Officer and Chief Data Officer are some of the most essential hires to a company. With the way, the world is changing and stepping more and more into the vastness that is digitalization, the Chief Digital Officer is someone who keeps driving the change and adapting the company to all the latest internal as well as external changes in technology.
It is important to keep pace with the technology and follow the most prominent digital strategy to ensure growing business and that is exactly what the Chief Digital Officer ensures.
Chief Data Officer, on the other hand, is a senior executive, who manages and governs the data quality, the listing of all the data assets, and the handling and manipulation of data within the entire company.
With the help and involvement of the Chief Digital Officer and the Chief Data Officer, an organization can escalate to great heights of digital transformation and establish a new position in the market.
When the quality of data is improved with properly analyzing the data assets in the company and forming the proper digital as well as data strategy, both the chief digital officer and chief data officer can be proven to be great assets to an organization.
Cultural Transformation of a company plays a major role to encourage the adoption of technology transformation to build innovative capabilities to drive digital transformation to stay competitive in the market.
Digital transformation has been a widely discussed topic for over a decade. This process is still in progress, led by the IT organizations, who are leading the charge to transform into digital companies.
The digital transformation is fast-paced and changing every day. We see new use cases related to AI and machine learning every day which are helping organizations make faster and smoother transformations towards a data-driven model.
According to IDC, global spending on digital transformation is expected to reach a staggering $6.8 trillion by 2023.
In an era where AI and machine learning technologies play an important role in creating intelligent products, predictive marketing campaigns, using chatbots for customer engagement and healthcare data analytics, it’s imperative for businesses to start embracing these technologies in their business models today or risk being left behind in tomorrow’s competitive landscape.