Why Businesses Need Digital Transformation?

With the advent of digital technology and widespread use of modern tools, businesses are moving towards digital transformation. Since consumers today are driven by latest technologies and digital innovations, meeting their needs becomes one of the most crucial aspects for businesses. Digital transformation is the process of modifying the existing or traditional business processes, culture, and customer experiences with digital technologies to meet these dynamic market requirements. According to research, 70% of organizations have a digital transformation strategy in place to achieve business growth, and with it, improved customer satisfaction.

Digital transformation begins and ends with how you think about and engage with customers, transcending the traditional roles of sales, marketing, and customer services. It has changed the way businesses perform their tasks, and leverages technology to make the most of it.

In my blog today, I will be talking about the frameworks, building blocks, and trends of digital transformation that businesses should know about in order to achieve business growth.

Digital Transformation Framework

While digital transformation varies based on an organization’s specific demands and challenges, there are certain common elements that should be kept in mind while taking up this endeavour-

1. Customer experience
2. Culture and leadership
3. Workforce enablement
4. Operational agility
5. Digital technology integration

It is all about evolving your business by experimenting with new tech and rethinking your current approach to common issues.

Digital transformation is necessary in today’s ever-evolving business environment since it helps you-

1. Increase productivity and reduce labour cost.
2. Improve customer experience.
3. Drive innovation to stay ahead of your competition.

Let me tell you about some key drivers that compel businesses to opt for digital transformation-

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

Building Blocks of Digital Transformation

To develop new capabilities, businesses need to succeed in the digital marketplace. Here are the five building blocks of digital transformation with which businesses can develop and scale their digital offerings-

1. Operational backbone – It is a set of integrated and shared systems that ensures the operational excellence in your core business. It becomes necessary for organizations to have a strong backbone without which leadership cannot be established.

2. Digital platform – It facilitates the rapid innovation of new offerings and enhancements by providing components to personalize them for different customers with different needs.

3. Shared customer insights – It involves organizational knowledge about 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 to make decisions related to performance and cost.

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

Now that you know about the building blocks, allow me to present some of the latest trends of digital transformation.

Trends of Digital Transformation in 2022

1. 5G and IoT – It is the fifth-generation technology for mobile networks which offers better connectivity, multi-peak data speeds, low latency, improved user experience, and improved network bandwidth. 5G in the IoT domain can be 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 (Robotic Process Automation), low code/no code, or AI/ML, businesses plan to 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) to enhance brand impression. 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 Artificial Intelligence 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 can also be called a digital twin and enables sharing the experience with multiple users in real-time.

Customers are the epicentre for any business’ success and growth. As I’m sure you must have seen, customer expectations are largely driven by modern technology and digital innovations. 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 rather important to map out the entire customer journey and then 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 with the help of my blog you have understood all about digital transformation and you will now be able to transform your business digitally. Visit us at Nitor Infotech to know more about how we can help you in your journey of transformation!