What is Digital Transformation?
Digital Transformation is no longer a buzzword. It is an important topic for companies around the world and an option of seasoned CXOs to discuss with clients. However, what exactly digital transformation is? Why it is so important for companies to consider this technology? And, where to begin the transformation journey? These are just some of the questions that a digital transformation expert will explore with you.
Companies are beginning to explore new frontiers to compete in markets that continue to evolve. At the core of these ventures are digital transformation strategies. These strategies aim to support companies to:
Develop or find new processes and procedures to drive growth. When developing new processes, companies need to consider how they can leverage digital transformation to improve their overall performance. How can a company start from scratch and quickly transform into a more successful operation? How do you get from where you are now to where you want to be? Digital transformation allows a company to look at processes in new ways and adapt them to the needs of present-day operations.
Create artificial intelligence to perform business functions. Artificial intelligence (AI) is the study of systems and algorithms to deal with the manipulation of data in order to provide relevant results. AI can be defined as “self-learning”, in which an artificial intelligence system can learn and develop itself over time by manipulating, processing and storing data sets. This is one of the key benefits of digital technologies as it helps businesses address the needs of present-day consumers by providing businesses with a deeper insight into what people need and want through artificial intelligence.
Create new tools and processes to streamline operations. Streamlining certain processes allows for greater efficiency and cost savings. This applies to all areas of a business but particularly to those processes associated with finance, supply chain, customer service, marketing, and sales. By streamlining processes, businesses gain a competitive advantage and start to reduce cost while maintaining or improving quality. Streamlining is especially beneficial in industries where processes change frequently, such as warehouses and distribution.
Find new ways to train employees. With the abundance of digital technologies that are available today, training for employees is becoming even more challenging. Employees need training and development opportunities to become up to date on industry standards. Streamlining existing processes helps to develop these training opportunities and make employees more effective in their jobs. This is why developing a digital transformation strategy is so important to a business’s bottom line.
Create business models and work with transformation platforms. Digital technologies help businesses manage all processes within and outside of their organization. However, not all digital technologies can be applied in all businesses and creating effective business models that support digital transformation requires effort and thought. A transformation platform provides the infrastructure necessary to implement digital transformation successfully by connecting organizations from across the value system spectrum with each other and with a common purpose.
Digital Transformation Strategy
A digital transformation strategy starts with an assessment of the needs of the company and of customers and begins by establishing a vision and roadmap for accomplishing this goal. From there a business model is developed and implemented. The vision and roadmap help to define daily and long term goals and activities. Finally, action plans are established to achieve those goals. A digital transformation team is then assembled to help realize that vision and to work together to ensure that it becomes a reality.
Identify the customers of the organization. Digital technologies are not available for all businesses and they must be targeted to fit specific needs. A digital transformation team will identify the specific businesses that need the technology to better serve their customers and to help them compete in today’s market place. Next, they will start to develop a plan to help these businesses start to convert to digital.
Develop artificial intelligence. Digital technologies do not stand alone. Organizations need a digital transformation platform that includes artificial intelligence. Data can be collected and analyzed from across the organization with the aid of artificial intelligence and machine learning. Once the data has been analyzed, digital technologies can be brought to life and implemented. This includes developing new business models, streamlining processes, improving productivity, reducing costs, improving service quality, and more.
Create digital transformation strategies. Digital technologies can only be developed if organizations are able to create digital strategies. These strategies should include timelines, activities, targets, and action plans. The strategies should also have the right balance of automation and human resources. The combination of these factors will help to achieve business models that are very relevant to the current circumstances while transforming business processes so that they become much more manageable, efficient, and cost-effective.
If you would like more information on how Alcimi can help you Digitally Transform your business please contact us today.