Benefits Of Digital Transformation
Digital transformation, by definition, enables organizations to succeed in our digital age. For companies, this success translates into higher revenues and profits. For other organizations, such as non-profit institutions, success will be measured with KPIs on better supporting their stakeholders (donors, members, public partners, etc.). But transformation initiatives offer many other benefits:
- greater employee productivity – a leap that often comes from the increased use of automation technologies and robotics (like RPA ), as well as machine learning and AI;
- greater customer satisfaction, which generally results from a greater focus on understanding customer needs and deploying the technology required to meet those needs;
- As an organization’s culture and capabilities evolve to support ongoing changes, more agility.
All of these gains are helping to fuel the transformation underway: automation allows employees to move into higher value-added work, and greater agility makes it easier to identify opportunities and reallocate resources to sixteen of them.
Challenges And Limits Of A Digital Transformation Strategy
Despite the ubiquitous mention of digital transformation in corporate discourse, the majority of organizations have, in fact, not (yet) succeeded in carrying it out. “In addition, to maintain the impact of a transformation over the long term, it generally requires a rethinking of mindsets and behaviors, which few leaders know how to do,”. The main barriers to the success of digital transformation are generally:
- concerns about privacy and data security;
- budget constraints;
- limited internal skills and expertise;
- regulatory and legislative changes, and compliance ;
- an immature digital culture.
Many organizations still have old (so-called “legacy”) technologies that are not easily replaceable. Many organizations can’t – or won’t – allocate the budget needed to transform IT and replace these outdated technologies. On the HR side, many also struggle to find qualified leaders, either for their operational leadership or to sit on the board to guide such initiatives. Many also struggle to recruit IT professionals who have the right mix of IT expertise and knowledge of their industry and businesses – two skills that help bring transformation projects to life on the ground.
But even organizations with the right resources face challenges in transforming their processes and products. To ensure their success, they must modify many internal elements: projects requiring adequate funding and management – often cross-functional. For example, an organization may need to implement modern supply chain management technologies while deploying sensors (IoT) and applying machine learning (to do predictive ) to obtain information (insights) on how customers use its products and share this with its R&D teams, digital marketing and sales staff (each of whom has dedicated IT tools).
Leaders must create an organizational culture that is open to continuous improvement and where all stakeholders buy into this permanent transformation. Everyone should be prepared to identify and abandon outdated and inefficient processes and replace them with better solutions. Without such a culture and such mobilization, an organization may find itself deploying modern technologies that enable, on paper, more efficient processes – such as real-time inventories or automated payment processing – but without truly transforming its functioning.
Examples Of Digital Transformation
Nespresso is a fantastic illustration of an organization that has finished its computerized change. The espresso machine maker, an auxiliary of the Swiss gathering Nestlé, has conveyed a cloud-based client relationship with the board ( CRM ) framework, offering its clients omnichannel admittance to its items and backing administration. They can arrive at the business on the site, the portable application, or a store. This unique perspective on every one of its clients – a 360-degree view – has permitted Nespresso to venture into more business sectors and further develop deals.
One more model is Netflix, sent off in 1997 as a DVD rental organization via mail. Today, the internet-based video real-time feature offers customized offers in light of every client’s inclinations. In food, Domino’s Pizza has adjusted to the advanced age, sending off administrations that depend on innovation, for example, its Pizza Tracker, which permits a client to follow their request live. Invention helped fuel Domino’s Pizza’s significant development all through the 2020s.
In any case, the most symbolic illustration of progressive change is, without a doubt, Amazon. Made in 1994 as a straightforward web-based book shop, the organization “disturbed” actual book shops and distance deals lists. Be that as it may, transforming into a “commercial center” has changed in nature and size of innovation. Until the present time, one of the IT goliaths with its auxiliary AWS, a long way from the books of its beginnings (regardless of whether Amazon keeps on selling them).