Digital transformation refers to the process of adapting a business model to take advantage of available technologies. This can include anything from making call centers and in-store service desks run more efficiently to developing digital solutions that provide new and different ways for customers to engage with your brand. It can even involve using data analytics and robotic process automation to improve customer service and develop loyalty programs.
Ultimately, digital transformation is all about creating value for the customer. This is why it’s critical that every digital transformation initiative is aligned with the company’s strategic goals, long-term financial objectives and customer satisfaction metrics. Tech for tech’s sake, in which an exciting technology is adopted just to keep pace with competitors, can misalign initiatives and limit their value realization.
Businesses that generate revenue through client services, digital media and/or physical goods can benefit from digital transformation by streamlining processes, enhancing productivity and implementing data analytics for better decision-making and service. Digital transformation can also enable companies to offer new products and services or re-energize existing ones. For example, digital transformation has enabled companies that originally sold products like automobiles, electronics and home appliances to switch to a service-based business model. This is the case with software vendors like Microsoft and Netflix, automobile manufacturers such as Volvo and Porsche, and many other consumer brands that now sell a subscription service to deliver their products.
To ensure digital transformation success, organizations must invest in the right skillsets. This includes software engineers, cloud computing specialists, digital product managers, and DevOps leaders who can galvanize development and operations to speed delivery. Additionally, they must hire or promote employees with a mindset that embraces change and creates a strong culture of digital innovation.