Digital Transformation – The Key to Business Success

With the advent of modern technologies, businesses are moving towards digital transformation. As consumers today are driven by digital technologies, meeting their needs is a crucial aspect for businesses. Digital transformation is the process of integrating digital technology into all aspects of a business. According to research, 91% of businesses are engaged in some form of digital initiative. It helps in achieving digital business growth, and with it, improves customer satisfaction.

Digital transformation begins with amalgamating new technologies with the traditional processes. It deals with how you think about and engage with customers. It changes the way businesses leverage technology and perform their tasks.

In my blog today, I will drive you through the frameworks, building blocks, and trends of digital transformation which are necessary elements of business growth!

Digital Transformation Framework

Every organization has its own specific demands and challenges. Here are some common elements that one should consider while formulating a digital transformation strategy.

Fig 1: Elements of Digital Transformation

It becomes imperative to experiment with new tech and bring innovations in your current approach.

In today’s ever evolving business environment, here’s why digital transformation is important as it helps you-

Fig 2: Importance of Digital Transformation

Moving ahead, here are some key drivers that compel businesses to opt for digital transformation-

• Customers are empowered by the digital era.
• Artificial Intelligence is the fastest emerging priority.
• Digital innovation drives employee engagement.

Building Blocks of Digital Transformation

To develop new capabilities, businesses need to succeed in the digital marketplace. Generate a compelling digital transformation roadmap by considering these building blocks:

Fig 3: Building Blocks of Digital Transformation

1. Operational backbone – It is a set of integrated systems that ensures operational excellence. Establish leadership by having a strong backbone for your organization.

2. Digital platform – It facilitates the rapid innovation of new offerings and enhancements. You can personalize your offerings for different customers with different needs.

3. Shared customer insights – Get an insight into what kind of digital offerings customers want and are willing to pay for. It is a process of accumulating knowledge about what a customer will buy.

4. Accountability framework – It involves coordination and ownership of digital offerings and components. You can make learned decisions related to performance and cost.

5. External developer platform – It helps in fostering a community capable of delivering end-to-end solutions. It helps to bring in more and more customers.

Allow me to present some of the latest trends of digital transformation.

Trends of Digital Transformation in 2023

Fig 4: Trends of Digital Transformation

1. 5G and IoT – It is the fifth-generation technology for mobile networks. It offers better connectivity, multi-peak data speeds, low latency, and improved network bandwidth. 5G in the IoT domain is used for connected automobiles, shipping and logistics, and remote healthcare.

2. Hyper automation – It aims to automate business and IT processes in every facet of business operations. Whether it is RPA , low code/no code, or AI/ML, businesses can upscale investments, reduce costs, and improve efficiency via automation.

3. Total Experience (TX) – It is a combination of user experience (UX), employee experience (EX), customer experience (CX). According to Gartner, 60% of large enterprises will use total experience to transform their business models by 2026.

4. Everything-as-a-Service (XaaS) – It is the latest digital transformation trend that promotes ‘as-a-service’ model and delivers anything to the customers. It includes more services such as Storage-as-a-Service (STaaS), Containers-as-a-Service (CaaS), Function-as-a-Service (FaaS), Security-as-a-Service (SECaaS), Video-as-a-Service (VaaS), and Unified Communication-as-a-Service (UCaaS).

5. Generative AI – It is a branch of AI that uses existing content to create similar yet original content. It determines the original patterns in the datasets and offers better quality results through self-learning.

6. AR Cloud – Augmented Reality Cloud (AR Cloud) is a digital 3D copy of the real-world environment created using its spatial features. It enables sharing the experience with multiple users in real-time.

7. Low Code/No Code – It is predicted that by 2024, low code/no code platforms will account for over 65% of software development. Anyone can build software with minimal or zero technical knowledge. It helps in developing software applications faster and with more efficiency.

Customers are the epicenter for any business’ success and growth. Customer expectations are largely driven by modern technology and digital innovations. Thus, it becomes extremely important to keep them happy and satisfied.

This arises a need for formulating a well-thought digital transformation strategy. The digitally connected world allows them to comparison-shop and move from one brand to another with minimal effort.

The goal of digital transformation is exceptional customer experience. You need to focus on your consumer journey to meet their demands. It is also important to map out the entire customer journey and determine how going digital can make each touchpoint an improved experience.

I suggest that you develop a culture of adaptability as change is going to be constant. Digital transformation is an ongoing process that needs to adapt to innovation and changing customer behaviour.

I hope that my blog has provided you with a comprehensive understanding of digital transformation, enabling you to embark on the path of digitalizing your business. Visit us at Nitor Infotech, where we can provide additional insights and support tailored to your specific needs.