It is mainly because they want to cope with the needs of the people in the market and would like to grow in double paces. Digital transformation is a process of shifting from one situation to another. It involves modernizing and choosing new software or application to improve the production and overall efficiency of the business operation.

  • This will enable advanced services in e-health, connected vehicles and traffic systems and mobile cloud gaming.
  • The greater the degree to which analytical tools are placed within the heart of the business, the greater their positive effects can be.
  • If the business tends to use advanced technologies and means for doing business, then there is great competition that lies ahead.
  • Apart from ensuring that your staff is included in the process, you’ll have to change the company culture as well.
  • Back in 2009, Uber transformed the taxi industry by allowing people to hail a ride through a mobile app.
  • By using cloud storage, data loss is prevented and data backups are automated.
  • The same data was used to better understand parents, recommend the most relevant games for their children, and help them seamlessly purchase via multiple channels.

Today, increasingly more CIOs consider cloud migration as a primary measure in security risk mitigation. Believe it or not there was once a time when Apple was not the globally dominant force it is today. They were close to bankruptcy when the Co-Founder of Apple, Steve Jobs, shared his nuggets of wisdom with the entire organization. “OTT is an undeniable trend that transcends geographical boundaries to reach customers worldwide. Amongst all the changes that the pandemic has brought to our lives in the past two years, not being able to go out to the movies is a major one.

FAQs About Digital Transformation

Digital transformation is the initial act that sets the stage for all subsequent business growth. Without investing in digital business transformation, your company will quickly become obsolete. In the past few years, we’ve seen industry giants like Blockbuster, Toys R’ Us, and Kodak go bankrupt. To survive the digital tsunami engulfing the world, you must take steps to transform. Once you do, you’ll reap the benefits of digital transformation and become stronger and more profitable for years to come. With the rise of digital technology, customer expectations have evolved.

Why businesses need digital transformation

IoT is a trend in digital transformation because it can potentially transform industries by enabling more connected and data-driven operations. It enables businesses to improve scalability, flexibility, and agility. As a result, companies increasingly rely on cloud services, particularly when cutting costs and improving accessibility.

Competency Centre Supporting Client Base | Deloitte

The root cause of all these changes and digital transformation always starts with the customers. It is a proactive response by the business owners to adapt to the situations and needs of their customers to win in what digital transformation means for business this business industry. The expectations of modern customers are driven by digital innovations and digital technology. These customers may somehow expect some new opportunities and possibilities in the market.

There’s also a need for a daily trend update or knowledge about the trends in the environment. So, you need to make sure that your business can adapt to new trends in the industry to make it on top. Greater Agility And Flexibility – Digital transformation can help businesses become more agile and adaptable to change. For example, a company that uses cloud-based applications can quickly scale up or down its operations in response to changing demand. Increased Revenues – A study by Boston Consulting Group found that companies that have adopted digital transformation strategies are 26% more likely to report revenue growth above the industry average. Improved Customer Experience – In today’s hyper-connected world, customers expect a seamless, personalized experience from the brands they do business with daily.

Enhanced customer experience

About 1.3 billion people are now connected on social media platforms like Facebook, Twitter, Instagram etc. It is a huge market for enterprise to penetrate and analyze customer buying behavior to deliver personalized user experience. We are present in the Fourth Industrial Age, which urges enterprises to become digital-ready.

Why businesses need digital transformation

They want to interact with companies on their terms, whether through a website, mobile app, social media, or in-person. IT leaders find themselves working in cross-functional teams more than ever. Digital transformation initiatives often reshape workgroups, job titles, and longtime business processes. When people fear their value and perhaps their jobs are at risk, IT leaders will feel the pushback.

Great Examples of Digital Transformation

Embracing this shift requires everyone in the company to rethink the role and impact of IT in their day-to-day experience. Improved Agility and Innovation With DT, businesses proliferate, fuelled with innovation. When it comes to DT initiatives, 68% of companies rank agility among the top three considerations. Digitalization is the process of using digitized information to work more simply and efficiently. And you’ll find increased importance of digitalization in business today more than ever. Learning from other organizations’ experiences in their DT journeys can aid ideation by providing insight into their challenges, pitfalls, and successes.

Why businesses need digital transformation

It suggests that every level of organization–from accounting through marketing to shipping–should be involved in the end-to-end, continuous experience-feedback mechanism. As an organization delivers experience and receives feedback, it learns from it and ships an updated experience to match customer expectations. This will help both in enhancing the existing-customer experience and building a new digital community. This path of transformation is preferred when the physical revenue streams no longer match the digital expectations of customers or partners. Thus, the transformation starts with addressing digitalized customers and evolves to redefining the core value proposition as most of the customers demand digital products. While keeping the old revenue streams, use new digital channels to reach the digital audience, engage the existing customers in a new way, or optimize existing operations.

What are the Key Benefits of Digital Transformation?

Digital transformation offers organizations an opportunity to engage modern buyers, and deliver on their expectations of a seamless customer experience regardless of channel or place. More than half of all consumers now expect a customer service response within one hour. This need for instant gratification has forced organizations to remain accessible and on-demand, 24 hours a day, 7 days per week. Delivering the right message to the right person at the right time brings us to our third and final success factor for digital transformation – a seamless multi-channel experience. For example, you can get a good understanding of your customers by evaluating general requests, product quotes and support enquiries.