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What is Digital Revolution ?
In the first of the four Industrial Revolutions, steam power was the disruptive technology that changed the world. In the second it was the assembly line; in the third it was the computer. Today, we are in the fourth Industrial Revolution and it is Digital Revolution. Intelligent digital technologies like Artificial intelligence (AI), Machine Learning, Internet of Things(IoT) Networks, Advanced Analytics, and Robotics, have the power to reinvent how we work and do business – and how companies engage with their customers and the world.
What is Digital Transformation?
Driven by market demand and fueled by technology, digital transformation means adopting digital-first customer experience, business partner experience and employee experience.
Digital transformation is the process of using digital technologies to create new or modify existing business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is called as digital transformation.
It transcends traditional roles like sales, marketing, and customer service. Instead, digital transformation begins and ends with how you think about, and engage with customers. As we move from paper to spreadsheets to smart applications for managing our business, we have the chance to re imagine how we do business? how we engage our customers with digital technology on our side ?
Digital transformation involves integrating digital technologies and solutions into every area of a business. This is as much a cultural change as a technological one as it requires organizations to make fundamental shifts in the ways they operate and how they deliver customer experiences and benefits. Digital solutions also help to augment the workforce and can lead to business process and business model transformations.
What is Digital Transformation ?
Driven by market demand and fueled by technology, digital transformation means adopting digital-first customer experience, business partner experience and employee experience.
Digital transformation is the process of using digital technologies to create new or modify existing business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is called as digital transformation.
It transcends traditional roles like sales, marketing, and customer service. Instead, digital transformation begins and ends with how you think about, and engage with customers. As we move from paper to spreadsheets to smart applications for managing our business, we have the chance to re imagine how we do business? how we engage our customers with digital technology on our side ?
Digital transformation involves integrating digital technologies and solutions into every area of a business. This is as much a cultural change as a technological one as it requires organizations to make fundamental shifts in the ways they operate and how they deliver customer experiences and benefits. Digital solutions also help to augment the workforce and can lead to business process and business model transformations.
Digitization is the move from analog to digital
Converting Information and Documents From Analog to Digital Formats
Not so long ago, businesses kept records on paper. Whether handwritten in ledgers or typed into documents, business data was analog. If you wanted to gather or share information, you dealt with physical documents — papers and binders, photocopies, and faxes. Then computers went mainstream, and most businesses started converting all of those ink-on-paper records to digital computer files. This is called digitization: the process of converting information from analog to digital.
Finding and sharing information became much easier once it had been digitized, but the ways in which businesses used their new digital records largely mimicked the old analog methods. Computer operating systems were even designed around icons of file folders to feel familiar and less intimidating to new users. Digital data was exponentially more efficient for businesses than analog had been, but business systems and processes were still largely designed around analog-era ideas about how to find, share, and use information.
Digitalization is using digital data to simplify how you work
Integrating Digital Technologies into Existing Business Processes
The process of using digitized information to make established ways of working simpler and more efficient is called digitalization. Note the word established in that definition: Digitalization isn’t about changing how you do business, or creating new types of businesses. It’s about keeping on keeping on, but faster and better now that your data is instantly accessible and not trapped in a file cabinet somewhere in a dusty archive.
Think of customer service, whether in retail, field ops, or a call center. Digitalization changed service forever by making customer records easily and quickly retrievable via computer. The basic methodology of customer service didn’t change, but the process of fielding an inquiry, looking up the relevant data, and offering a resolution became much more efficient when searching paper ledgers was replaced by entering a few keystrokes on a computer screen or mobile device. As digital technology evolved, people started generating ideas for using business technology in new ways, and not just to do the old things faster. This is when the idea of digital transformation began to take shape. With new technologies, new things — and new ways of doing them — were suddenly possible.
Digitalization is using digital data to simplify how you work
Integrating Digital Technologies into Existing Business Processes
The process of using digitized information to make established ways of working simpler and more efficient is called digitalization. Note the word established in that definition: Digitalization isn’t about changing how you do business, or creating new types of businesses. It’s about keeping on keeping on, but faster and better now that your data is instantly accessible and not trapped in a file cabinet somewhere in a dusty archive.
Think of customer service, whether in retail, field ops, or a call center. Digitalization changed service forever by making customer records easily and quickly retrievable via computer. The basic methodology of customer service didn’t change, but the process of fielding an inquiry, looking up the relevant data, and offering a resolution became much more efficient when searching paper ledgers was replaced by entering a few keystrokes on a computer screen or mobile device. As digital technology evolved, people started generating ideas for using business technology in new ways, and not just to do the old things faster. This is when the idea of digital transformation began to take shape. With new technologies, new things — and new ways of doing them — were suddenly possible.
Digital Transformation Adds Value to Every Customer Interaction
Digital transformation is changing the way business gets done and, in some cases, creating entirely new classes of businesses. With digital transformation, companies are taking a step back and revisiting everything they do, from internal systems to customer interactions both online and in person. They’re asking big questions like “Can we change our processes in a way that will enable better decision-making, game-changing efficiencies, or a better customer experience with more personalization?”
Netflix is a great example. It started out as a mail order service and disrupted the brick-and-mortar video rental business. Then digital innovations made wide-scale streaming video possible. Today, Netflix takes on traditional broadcast and cable television networks and production studios all at once by offering a growing library of on-demand content at ultracompetitive prices. Digitization gave Netflix the ability not only to stream video content directly to customers, but also to gain unprecedented insight into viewing habits and preferences. It uses that data to inform everything from the design of its user experience to the development of first-run shows and movies at in-house studios. That’s digital transformation in action: taking advantage of available technologies to inform how a business runs.
What is Digital Transformation - Understanding the Possibilities
A key element of digital transformation is understanding the potential of your technology. Again, that doesn’t mean asking “How much faster can we do things the same way?” It means asking “What is our technology really capable of, and how can we adapt our business and processes to make the most of our technology investments?” Before Netflix, people chose movies to rent by going to stores and combing through shelves of tapes and discs in search of something that looked good. Now, libraries of digital content are served up on personal devices, complete with recommendations and reviews based on user preferences.
Streaming subscription-based content directly to people’s TVs, computers, and mobile devices was an obvious disruption to the brick-and-mortar video rental business. Embracing streaming also led to Netflix looking at what else it could do with the available technology. That led to innovations like a content recommendation system driven by artificial intelligence. Talk about making the most out of your IT department!
What is Digital Transformation - Understanding the Possibilities
A key element of digital transformation is understanding the potential of your technology. Again, that doesn’t mean asking “How much faster can we do things the same way?” It means asking “What is our technology really capable of, and how can we adapt our business and processes to make the most of our technology investments?” Before Netflix, people chose movies to rent by going to stores and combing through shelves of tapes and discs in search of something that looked good. Now, libraries of digital content are served up on personal devices, complete with recommendations and reviews based on user preferences.
Streaming subscription-based content directly to people’s TVs, computers, and mobile devices was an obvious disruption to the brick-and-mortar video rental business. Embracing streaming also led to Netflix looking at what else it could do with the available technology. That led to innovations like a content recommendation system driven by artificial intelligence. Talk about making the most out of your IT department!
Adapt Your Business with Social Media to Leverage Digital Transformation
Similarly, digital transformations have reshaped how companies approach customer service. The old model was to wait for customers to come find you, whether in person or by calling an 1800 number. But the rise of social media has changed service much like it’s changed advertising, marketing, and even sales and customer service. Progressive companies embrace social media as a chance to extend their service offerings by meeting customers on their platforms of choice.
Making call centers and in-store service desks run more efficiently with digital technology is, of course great. But real transformation comes when you look at all available technologies and consider how adapting your business to them can give customers a better experience. Social media wasn’t invented to take the place of call centers, but it’s become an additional channel (and opportunity) to offer better customer service. Adapting your service offerings to embrace social media is another good example of a digital transformation.
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Why Digital Transformation is so Important?
Key role
Digital Transformation
How Digital Transformation Can Change Your Customer Experience?
Consumers today have more choices than ever. Which means the stakes are high for businesses to not only deliver innovative products or services but to deliver meaningful interactions and experiences that delight customers and foster brand loyalty. Just think about how many choices you have for food delivery these days. The reasons you may choose one over the other can be directly tied to a company’s digital transformation, whether it’s an easy-to-use app, a seamless transaction, good customer service, or fast delivery.
Digital transformation doesn’t just involve providing your workforce with the latest apps and devices—it’s about creating a simple, modern, more fulfilling Employees Experience. Digital transformation can help organizations provide the tools people need, with instant access from anywhere.
How Digital Transformation Can Change Your Process Optimization?
An organization’s ability to deliver great employee and customer experiences hinges on its ability to seamlessly operate on the backend. Streamlined workflows, digital processes, and automated tasks are all ways organizations can create efficiencies.
How Digital Transformation Can Change Your Product Digitization?
This refers to using technology to enhance a product or service, like smart-connected or voice-activated devices. Digital transformation not only helps companies stay on the cutting edge of technology, but also creates an agile infrastructure necessary to constantly innovate and adapt to rapid change and consumer demands.
Benefits of a Successful
Digital Transformation Strategy
Not only do consumers spend several hours a day on mobile devices, but employees are tied to smart phones, tablets, and laptops. Agile companies need mobile solutions that deliver the same experience people have in the office. Many digital transformation projects take mobility as a central theme. Broadening end-user experiences to include mobile platforms is essential for the modern enterprise. Across industries, companies take advantage of mobile capabilities to increase production, enhance operational efficiencies, and improve satisfaction rates.
Effective digital transformation projects can support an organization’s commitment to data security, especially in an era of connected devices and big data. Taking into consideration any relevant data sovereignty responsibilities, stakeholders must be vigilant about protecting user information, especially when entrusted with large quantities of sensitive information. Globally, companies may be subject to a number of international privacy laws. These should be reflected in any transformation strategy.
Businesses are beginning to adopt new technologies not only for their functionality, but also for their ability to enhance worker productivity through simpler interfaces and more intuitive interactions. Enterprise applications with cumbersome user interfaces can make work more difficult for employees, even if the backend is efficient.
What are the Common Challenges of
Digital Transformation?
Digital transformation is not a one-and-done project. It’s an ongoing process that must be constantly nurtured and evolved. Implementing technology without looking at how it fits in the big picture can create more challenges than benefits. Digital transformation should begin with a vision, and any projects should stem from that vision. When thinking about your vision, it’s imperative to keep in mind business goals and objectives and how a digital transformation strategy can support them.
Any business transformation, digital or otherwise, is more likely to succeed when leadership is engaged. And leadership is more likely to be engaged in initiatives that are directly aligned to the business strategy. When proposing any new project, it’s important to demonstrate how it supports the business and will impact the bottom line. With leadership buy-in secured, you can avoid any budget challenges that will impact your project.
While in the past, IT was solely responsible for digital transformation, that’s no longer the case. It’s become a cross-functional effort across the organization, and as such, both leaders and employees need to be involved. When leaders implement a new piece of technology without engaging the people who actually use the solution on a daily basis, they risk investing in a tool that does not actually meet the company's needs. Leaders require insight into end-user experiences to ensure that the solution works properly and does not introduce new challenges.
The Future of Digital Transformation Defined by Mobiwise
Digital transformation takes a customer-driven, digital-first approach to all aspects of a business, from its business models to customer experiences to processes and operations. It uses AI, Automation, Hybrid cloud IOT, Block chain and other digital technologies to leverage data and drive intelligent workflows, faster and smarter decision-making, and real-time response to market disruptions. And ultimately, it changes customer expectations and creates new business opportunities.
While many organizations have undertaken a digital transformation in response to a single competitive threat or market shift, it has never been about making a one-time fix. According to MIT SLOAN MANAGEMENT REVIEW . “Digital Transformation is better thought of as continual adaptation to a constantly changing environment.” Its goal is to build a technical and operational foundation, to evolve and respond in the best possible way to unpredictable and ever-changing customer expectations, market conditions and local or global events.
It’s also worth noting that while digital transformation is something that businesses undertake, the effect goes well beyond business. As one expert at Red Hat® puts it, “Better living through software—that’s what digital transformation is .How’s that for a definition?” It’s a solid definition, particularly if you think that ‘better living’ includes working and playing in a world that promises new opportunities, more convenience and greater resilience to change.
Digital transformation is why so many areas of business and life are fundamentally different from those of 20 years ago. It’s also why we are now living in the digital age to one degree or another.
Drivers of the Digital
Transformation Services
Mobile devices
Social media
The internet of things (IoT) & Cloud computing
Reinvent business models (ecommerce, electronic delivery).
Optimize processes (supply chain management, new feature development).
Constantly improve the customer experience (in-context customer reviews, personalized recommendations). Competitors adapted to provide even more capability and convenience (or they struggled and maybe even disappeared). Today, customers expect to conduct all business digitally, wherever, and whenever, using any device, with all the supporting information and content they need close at hand.
Automating Business Processes
Adding AI and automation serve customers better and do higher-value work. They create intelligent workflows that simplify operating models, increase productivity and enable employees to make better decisions faster.
Defending Against Disruption
Digital transformation implements technologies and best practices for fast Product creation, new customer experiences and new business models in response to shifts in competitive threats, market trends and customer expectations.
Dealing with Change Effectively
Enabling on-demand access to more resources, with fewer limits.
care features
Digital Transformational
Technologies
Artificial Intelligence & Automation
(AI) technologies, such as machine learning, enable a computer or machine to mimic the human mind's capabilities. AI learns from examples, recognizing objects, making decisions and more. When combined with automation, AI can infuse intelligence and real-time decision-making into any workflow. It can drive everything from innovative smart products, from increasingly personalized customer and user experiences to optimized workflows for supply chain management, change management and more.
Hybrid Cloud
A Hybrid Cloud is a cloud computing infrastructure that connects on-premises IT, public cloud and private cloud resources with orchestration, management and application portability. By creating a single, flexible, optimal cloud for running every workload—and by not locking an organization into a single platform or vendor—hybrid cloud provides the agility, scalability and resilience required for enduring digital transformation success.
Micro Services
Micro Services is a cloud-native application architecture in which a single application is composed of looSersely coupled, independently deployable components. Together with Agile or DevOps methodologies, microservices are an engine for creating or countering digital disruption. It enables organizations to deploy new software or product features daily or sometimes hundreds or thousands of times a day.
Strategy
Digital Transformation Strategy
- They work backward, starting with the ideal customer experience.
- They take a holistic approach to transforming operations.
Business Innovation and Three Facets of Digital Transformation
Any transformation plan should look at these three areas
Business process transformation
This involves changing and adapting core – often long-standing – processes and workflows to meet changing business goals, competition, and customer demands often through process automation. Despite the terms often being used interchangeably, digital transformation is a subset of business transformation – it builds a connected, technological framework that underpins and supports process changes.
Evidence of business process transformation can be seen from end to end within business operations thanks to improvements in workflow management. For example, by implementing a digitalized, cloud-based supply chain management system, businesses can lower downtime, streamline production, and increased profitability.
Business process transformation focuses on workflows and task-related areas of the business whereas business model transformation aims at the foundational building blocks of how value is delivered in a specific industry. In essence, companies are using digital transformation to change traditional business models.
In the auto industry, digital technologies give the ability to centralize and automate subscription-based business models and billing processes. Coupled with rapidly changing customer demands and a general cultural shift, traditional car buying is being transformed with subscription-based models.
A successful digital transformation should align itself with the culture and values of the organization. An internal loss of faith in corporate culture can impact the productivity, initiative, and wellness of the workforce. Slow or pessimistic adoption of new digital technologies can cause missed targets and lead to a loss of competitiveness, revenue, and brand value.
Organizational transformation is best achieved through collaboration and open discussions from the top down – as to how this digital transformation will impact roles and workflows and why the leadership teams feel that it will be worth the risk and effort in the long run.
Digital Transformation Benefits
Delivers Deep Insights to Inform Real-Time Decision Making
For many businesses, assessing performance and ROI has often been a backward-looking process. By the time data is gathered, processed, and manually analyzed, the ship of opportunity has long since sailed. With a modern ERP SYSTEM and Advanced Analytics businesses can see real-time data and customize powerful analysis algorithms to make the best decision in the moment.
Improves Efficiency and Productivity
IoT network devices and machines continually transmit data, machine logs, and performance reports. Through the application of advanced analytics, this data can support predictive maintenance, lowered downtime, and deliver insights for more productive and efficient workflows.
Enhances Customer Experiences
Your customers want their needs met on their terms. Personalization, omnichannel access, customized service plans, and real-time access to data can help you deliver to their ever-changing expectations while increasing leads and driving retention and loyalty
Helps Drive Business Model Innovation
There’s no question that changing consumer and market demands are seeing an increased focus on business model innovation as a means of value creation. But to change and modernize fundamental business models and customer experiences, companies require the ability to gather and analyze real-time data and develop automated and intelligent processes to manage new business, payment, and service models.
Supports a Robust & Competitive Corporate Growth Strategy
When businesses digitalize their operations and optimize their services with connected technologies, they find new ways to connect and collaborate and to streamline future business growth strategies, including
- Developing New Products & Services
- Attracting and retaining New Leads & Customers
Advanced Analytics
In order to deliver value, data needs to be harnessed and understood. Using AI and machine learning algorithms, advanced analytics provides insights and reports that are deep, accurate, and actionable. Businesses can also customize data analysis configurations on demand. This gives business leaders the power to act quickly and decisively – by seizing an opportunity or responding to risk.
Modern ERP and Database Technologies
The best cloud ERP solutions use in-memory database technology, making them highly scalable and adaptable. This is important because they are essentially the “brains” behind digital business transformation. ERP takes all the core processes needed to run a company (such as finance, HR, manufacturing, and supply chain) and integrates them into a single system. And when a modern ERP is powered by AI technologies, it has the power to not only manage and process Big Data but to analyze and learn from it.
Cloud Connectivity
Cloud-based infrastructure is an essential component to successful digital transformation and the establishment of IoT networks and connected business systems. On-demand, centralized access to all systems, assets, and data allows organizations to scale infrastructure as needed and rapidly change or automate workflows. This helps to support rapidly changing business priorities and operational models. And as Forrester tells us, as of 2021, almost 60% of enterprises in North America rely on cloud platforms, which is five times the percentage it was just five years ago.
AI and Machine Learning Solutions
Big Data grew up alongside AI and Machine Learning In order to process and make sense of Big Data, it’s necessary to have the power of AI and machine learning. For AI and machine learning to deliver accurate and meaningful results, both must have large enough data sets to support robust learning and analysis. The partnership of Big Data, AI, and analytics is at the core of business and digital transformation – driving predictive planning and responsive automation.
Internet of Things (IoT)
Devices and machines in an IoT network can send and receive digital data. Machine logs and maintenance reports are analyzed to optimize performance and efficiency. AI-powered business systems continuously analyze this information for patterns, trends, and correlations. These insights help drive predictive maintenance and automated workflows, increasing efficiency and productivity over time as the machine learning applications “learn” from the IoT data.
Robotics and Robotic Process Automation (RPA)
Both robotics and RPA use automated processes to accomplish repetitive or pre-programmed tasks. Robotic devices are comprised of moving, mechanical parts set to execute specific, physical tasks. RPA processes are similarly programmed and automated – however, they exist as software processes rather than physical devices, and the tasks they perform are administrative in nature.
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Digital Transformation Examples
The Greatest Challenges to
Digital Transformation
Studies from thought leaders like McKinsey and Harvard Business Review have shown us that up to 70% of business and digital transformation initiatives do not succeed. But if you dig a bit deeper, you learn that it’s not really the new technologies or the business innovations that are flawed. The weaknesses lay in poor planning, poor communication and change strategies, and the general failure of leaders and project managers to include and seek buy-in from all teams impacted by the change. In other words, of the three main areas of digital transformation mentioned above, “cultural transformation” is often the least talked-about but in reality may be the most crucial of all.
In 2020, Oxford Economics undertook an extensive survey of over 3,000 executives across 10 of the largest global industry sectors. What they found was that business transformation works best “when every part of an organization, including its external partners and customers, is agile and interconnected. Executives need to ensure that high-quality information is flowing across their entire business ecosystem, allowing all participants to interact in ways that advance the goals of the organization.”
Preparing for Digital Business Transformation
In a challenging business climate, companies need to seize every competitive advantage – and increasingly, those advantages are digital. By 2018,over 89% of executive had adopted a digital-first business policy. And by 2021, that number has only grown. However, as we discussed earlier, many digital transformation projects get stalled by poor communication and planning.
Consider these four early steps as you progress on your digital transformation journey, and speak to your software vendor to help you get started with crafting a transformation strategy and road map and learning which solutions are best for your unique business needs.
Business policy
Business Transformation
Determine Your Starting Point
Audit your existing systems and assets. Which machines are already digitalized? Which ones will require IoT gateways? Is your ERP modern and scalable, or is it still running on disk-based database memory? To give your project an early leg up, look first for processes within your business that are a high operational priority and have the least complicated path to transformation.
Audit Your Existing Systems & Assets
Which machines are already digitalized? Which ones will require IoT gateways? Is your ERP modern and scalable, or is it still running on disk-based database memory? To give your project an early leg up, look first for processes within your business that are a high operational priority and have the least complicated path to transformation.
Define Your Priorities
Don’t plan a marathon before you’ve even made it around the first block. The beauty of digital transformation is that it does not have to happen all at once. Like building blocks, smart technologies are designed to evolve, scale, and integrate.
Build Your Roadmap
A significant benefit to smart technologies lies in their immense scalability and capacity for rapid adaptation and reconfiguration. A great transformation road map should allow for agility and growth but start with a road map that has a few strong and attainable goals. Build solid change management and migration strategies into your plan as well – digital transformation is as much a human journey as a technological one. These are important early steps. Look for support from specialized professionals who understand your unique needs and can help chart the best course for your business.
Prepare Your Teams
Thoreau said, “Things do not change; we change.” Smart technologies can help reduce repetitive and tedious tasks, improve employee engagement, and support collaboration. But these benefits can only be realized when all your people are on board. Don’t spring the news on your teams. Learn from their input and ideas, openly address their concerns, and give them time to change.
