Being Digital is the now the new median.
Digital transformations or Digitalization is the profound transformation of business and organizational activities, processes, competencies, and models to sufficiently influence the changes and opportunities of a mix of digital technologies and their accelerating impact across the society strategically and comprehensively in the present circumstances and the near future. Companies are increasingly launching digital initiatives to expand or build digital capabilities aimed at business efficiency or top-line revenue growth. Moreover, as digital transformation success stories emerge, the trend is gaining steam. Today, those businesses that are digitally based have easy access to other channels and have more profit in this case. Currently, digitally transformed companies have an edge; tomorrow, only digital businesses will succeed.
The essential requirement for Digital Transformation
This process requires a strategy too which is called “Media Strategy” assists in gaining higher profits through data resources and technology-based initiatives. A successful digital approach needs a cross-functional team with executive leadership, marketing, and information technology (IT) members.
Standout examples of digital transformations
Companies like Nike and Burberry have moved from being providers of traditional consumer goods to digital leaders, creating value across digital products, services, and experience.
Nestle sells over 1.2 billion items daily across 8000+ brands which we all know from Nescafe, KitKat, Maggie, Pure Life Bottled water which is a big hit. Domino’s Pizza doesn’t use mobile as just another sales channel. It’s a branding tool.
Digital acceleration is also essential as the staff works not only on social media promotion but also on damage control and reputation management.
Three important pillars for digital transformation
Transform Customer Experience:
- Improve Customer Understanding with Analytics (customer behavior, segmentation).
- Enhance Top-Line Growth with digital products like smart Phone, iPads, real-time predictive marketing.
- Digitized Customer Touch Points – Social media to answer complaints, self-service via Apps, increased multi-channel usage.
Transform Operational Processes:
- Process Digitization with automation and adding new features.
- Staff Enablement with virtualization of workspace working anytime, anywhere.
- Performance Management decision making based on data with more profound insights into Customers, Products, Regions, etc.
Transform Business Models:
- Digitally Modified Businesses – the need to augment digital offerings, share contents across the organization.
- Introduce New Digital Businesses – (Ex:-Nike introduced fuel bands)
- Digital Globalization – use of Global shared services to promote efficiency, from multinational to a global
Challenges on the road to revolution
What are the problems firms are facing in digital transformation? Difficulties occur in all three elements of the transformation process: Initiation, Execution, and Coordination.
firstly involves the lack of impetus. This happens when the executives are justifiably skeptical of the benefits of emerging technologies. Moreover, this, in turn, prevents the firm from engaging in useful digitally enabled experiments and business changes. Secondly, reputation is the next thing that comes in the way while initiating Digital Transformation, as usually in healthcare or financial services executives are being careful about mobile and social technologies because of security and privacy concerns.
2. Execution challenges
Involve three main elements which may stop any leading company to grow successfully. One of the most crucial factors is Analytic-based decision making as it does not come naturally to the people working in firms. Secondly, Culture issues also become a bottleneck for digital transformation. A major cultural problem is related to changes in jobs due to automation or information empowerment.
3. Coordination challenges
Include many issues. Many firms fail to transform because of coordination difficulties across business units or processes. Groups can make progress in their areas but are unable to influence practices in other groups.
If the executives are facing these challenges, then they have to seek them out rationally so that they could find an immediate solution to them to digitalize their companies or prove themselves worthy of the global transformation.
The intensity of a digital change technique lies in its extension and targets.
Less carefully develop associations tend to center around singular advancements and have techniques that are positively operational in the center. Advanced technologies in the most develop associations are produced with an eye on changing the business.