Can you believe that global digitization was just a concept a few decades ago? Since then, the integration of digital technology into all industries is a daily reality. Today, it’s hardly more than a tool that can be used for marketing and development strategies.
What trends will shape the digital transformation in the coming years and how does it affect the business environment? No doubt, it is impossible to know what the future changes might bring, but here are some assumptions on what the process of structural transformation entails.
How does digital transformation affect the world?
The current stage of world economic and social development is characterized by a significant digital impact. As a new trend of world social development, it has replaced informatization and computerization. Digital transformation represents the digital presentation of information, which affects the world as a whole by improving the efficiency of the economy and the quality of life.
How to describe this process? Put simply, digital transformation is the connection of different parts of the world. Digital transformation for businesses can be defined as the process in which businesses, organizations, and countries begin operating on an international scale.
Digital transformation benefits
McKinsey research showed that only 11% of 1,140 business representatives believe that their current business models will be economically viable through 2023. Therefore it is easy to understand why 64% of the surveyed admit their companies need to rebuild and grow profit differently.
The main marker of technology’s increasing importance in terms of strategy and operations is that companies put more resources into their digital and technology development during the pandemic, even though they cut resources from other business areas. The funding of digital and technology initiatives increased, as did the number of experts in digital and technology roles and people who are interested in digital specialties. What are the main benefits of digital transformation that gave rise to such change?
- Using technology to work more efficiently is one of the most effective ways to transform your business. The time and money businesses spend on training new employees and updating digital resources can quickly get out of hand. Digital tools have proven their efficiency in cost reduction and productivity increase.
- Tech-savvy customers nowadays are used to obtaining great experiences through mobile apps, social media, email, chatbots, etc. Digital transformation is the driving force behind improved customer experiences, therefore driving the rapid development of digital technologies.
- Transforming business processes and adopting new ways of working for agility and experimentation are crucial to success and be sure that your competitors are eyeing the digital shift, independently of you. On the one hand, choosing not to accept digital conversion these days essentially means being left behind. On the other hand, investing in the future of your organization provides your business with plenty of new opportunities for growth.
How to start a digital transformation journey
Ultimately, new digital tools mean new ways of thinking. The uneven participation in digitization across different segments of society leaves a lot of businesses behind. To ensure lasting success, enterprises need to focus on the following crucial areas:
- Business goals must be aligned with objectives.
If you consider investing in major technological changes, answer the question first: what does your business need digital transformation for? Define the problem you aim to solve and align goals with the outcome you strive to achieve.
- IT and business collaboration is half the success.
IT departments are no more just rescue services for various technical problems. Now, any business that wants to implement a new mindset should go hand in hand with IT, and
- Choose strategic partners for digitalization.
Business representatives need help and resources to expand their digital and technology capabilities and reduce time to business value. Bet on the ones with proven track records whose values most closely align with yours.
- Adopt an agile approach.
Agility is the key to any transformation. Fostering it starts with creating a business culture in which experimentation is encouraged and innovative ideas can flourish.
- Make investments in staff reskilling.
Companies seeking to align their digital imperatives with customer preferences must ensure that their employees are on the same page. Since software has become a strategic asset, adopting the same strategic abilities as a software development company is a must for any business.
Digital transformation doesn’t change the core values or offerings of the companies. Creating an effective and secure digital solution requires a lot of effort and a skilled team. Moreover, it’s about creating connected workplace culture with lightweight, continuous education for employees and acquiring digital transformation tools that will support strategic goals.
Conclusion
The world is rapidly entering a digital era that will fundamentally change not only the way that production operates but also the way of life. The new industrial revolution will bring many positive changes while the introduction of the ‘smart factory’ and the digitization of industry as a whole, or its individual sectors, will inevitably lead to changes in the labor market and in methods of work, as well as the transformation of the character of work and employment.
Most importantly, reforms in these areas can reduce inequality and economic insecurity more effectively than fiscal redistribution alone. In capturing the full promise of digital transformation, the growth and inclusion agendas are one and the same.