Introduction:
In the technology-obsessed world in which we live, it’s common to hear people talking about digital transformation. Many organizations are looking to undergo this process in order to keep up with the ever-changing digital landscape. But what does that actually mean? And how can you make sure it’s successful? In this blog post, we’ll explore those questions and more. Stay tuned!
Digital Transformation in the Real World
Digital transformation is one of those buzzword terms that marketers love to throw around. Of course, every company wants some level of digital transformation, but few seem to understand how it’s done or what it means.
The people who say they want a digital transformation are often confused about what it actually is. They’re talking about going from doing things the way they’ve always been done to doing things differently.
The first step is defining digital transformation and understanding what it means.
Definition: Digital Transformation is to become a customer-obsessed, technology-enabled business that performs better than your competition by taking full advantage of both software and data. That’s a lot to take in, so let’s break it down piece by piece:
Customer-obsessed: To be customer-obsessed means you focus on everything through your customers’ eyes and not yours. It’s understanding their needs and wants so well that you can anticipate them before they even know themselves. Technology Enabled: Businesses used to be technology companies, whereas now businesses are becoming technology-enabled (look at retailers like Walmart). This isn’t just having the right software solutions; it’s about how you use that software.
Perform better than your competition: To do this means gaining an edge on your competitors by doing more with less. Getting things done faster, cheaper, or better with technology enables you to perform better than your competition. Taking full advantage of both software and data: Data without the right tools to exploit them can become worthless, so taking full advantage of data isn’t just about collecting the data but having the ability to turn it into something useful so you can make smart decisions quickly.
By now, I hope you have a clearer understanding of digital transformation and why companies are trying to do it in all sectors. So now, let’s look at some examples of how digital transformation is playing out in the real world.
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The Digital Transformation of Retailers
Every retailer wants a piece of Amazon’s pie, and they’re not going to let them have it without a fight. If you didn’t already know, Amazon raked in just under $136 Billion in net sales for 2016 with no signs of slowing down. In order to compete, retailers are doing what they can to catch up by adapting to the times through digital transformation.
They do this in three ways:
1. Technology – The first is having the right technology to provide their customers with a seamless shopping experience between online and offline channels. This means having smart stores that track inventory and customer foot traffic. Your employees know what products need stocking or pricing adjustments based on demand while also enabling customers to shop through their smartphones.
2. Personalization – The next is to leverage online and offline data to personalize the customer experience through targeted advertising or customizing product recommendations based on past buying behavior. Doing this requires a robust CRM platform that can integrate with their eCommerce site and supply chain software.
3. Omni Channel – Retailers also understand that customers like having the option of shopping in-store, online, and/or on their phones, so they’re looking at turning themselves into an omnichannel retailer. You don’t have to look far for examples of retailers trying to do this either; just look at how Walmart has been beefing up its eCommerce presence or Target’s acquisition of Shipt, which plans on using the company’s network of personal shoppers to deliver any items customers purchase online within one hour.
The Digital Transformation of Financial Services
Financial services companies like SunTrust Banks have been investing a lot in technology and talent to transform their business, providing better customer experiences, innovating faster, and remaining competitive. One example of how they’re doing this is through “Open Houses,” where employees can brainstorm different ideas that could help the company move forward with digital transformation then demo those ideas inside the physical open house, bringing them from concept to reality in days as opposed to weeks or months. Another initiative they have going on is called Moving Targets which works with local businesses by offering them training courses on how to use different software solutions so they can operate more efficiently throughout their organization. This helps both parties because SunTrust benefits from having businesses that can use the software they provide to them while the local business gets help with things like how to send invoices or better manage their inventory. In addition, by doing this SunTrust has made it easier for local businesses who might not otherwise consider working with a bank, let alone sign up for new banking services.
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The Digital Transformation of Manufacturers
If you’ve seen The Innovator’s Dilemma by Clayton Christensen, you’ll know some real obstacles preventing traditional manufacturers from moving forward to compete with smaller market disruptors. Generally, if you’re not making an expensive product requiring access to large capital, you probably won’t be facing much competition since margins are thinner, and pricing is often more competitive. There are exceptions to this rule, but generally, a company can get away with selling a product for a higher price if it distinguishes itself from the rest in terms of quality or features.
What are the Benefits of Digital Transformation?
Digital Transformation is all about taking what has been done before and working it in a new or different way. With Information Technology (IT) playing such a big part in our lives, the possibilities for digital transformation are endless, and we can’t help but wonder what might be next?
Information technology plays a key role in business today as everything becomes more achievable through digital technology, its influence over our society increases. The growth of data only continues to grow exponentially as computers power into the future with rapid innovation in processing speeds and effective memory storage. Digital transformation refers to how businesses take advantage of this latest form of IT and use it to increase productivity, efficiency, and organizational goals.
Conclusion:
As digital transformation becomes more important for businesses, many challenges and considerations need to be considered. We’ve highlighted some real-world examples of companies that have undergone a successful digital transformation.
Author Bio:
Anji Velagana loves pursuing excellence through writing. He currently writes for Gologica.com, a global leader in providing the best online training to individuals who wish to take training on different abilities. He has experience of 5 years in the field of content writing. Contact him via LinkedIn.