How Digital Transformation Revamps The Way of Doing Businesses
Digital transformation is a hot topic to discuss regardless of any industry you are serving. A 2-grade student knows the importance of digitalization in our lives. From small children to business owners, we are all leveraging digital transformation as we are experiencing digitized equipment and stuff.
The concept of digital transformation is ancient but the changes that we are experiencing in our daily life are totally groundbreaking. From old-fashioned sketching architecture to detail-oriented 3D illustrated animations, architecture is improving designing building infrastructures. Digital transformation is a necessity in all sectors.
But somehow people are less attentive to know what digital transformation is and how businesses are crazy about it. Further, they can not differentiate between digital transformation and technology and weighs on a single scale.
Let’s determine the concepts and understand the digital transformation process in businesses and what’s the impact on businesses and people by explaining real-life examples of world-leading businesses that totally revamp their business structure in digital transformation companies.
Digital Transformation In Business Operations
The integration of digitalization or you can say technology in business operations is called digital transformation. Digital transformation leads businesses to new heights by improving workflow, hastening production, extensive prospect leads, a wide range of communication services, and much more for them.
One of the basic digital transformations is communication from people to people and from software to software. The algorithm-based solutions make the technology communicate with each other and respond as soon as people interact with them.
People get amazed when they experience AI technology. Like if you see an ad that you just google and now you see the recommendation on all social media platforms, don’t you think it is magic? Actually, it is an AI-based algorithm that encourages marketers for real-time bidding.
The ad industry is getting more powerful since the advent of technology. Marketers can market and promote products and services via personalized ads. Like you can target your market with a specific country or even a specific region with specific personas.
Moreover, businesses take advantage of the fastest-growing and inventive resources. Digital transformation has an impact on how an organization operates on many levels, including how individuals work, how business processes operate, and how data is gathered, analyzed, and used.
The Depiction Of Digital Transformation Strategy In One Frame
Why is Digital transformation Important?
Currently, the industry is seeing a significant influx of innovative technical solutions. The “second wave of digital change” can apply here. Artificial intelligence, Big Data, robotics, and machine learning are all becoming increasingly widespread. 37 percent of businesses, or a 270 percent raise over the last four years, have embraced AI, according to Gartner.
The market for artificial intelligence is also still expanding. Customers are familiar with AI systems and bots that offer suggestions on services like Netflix or Spotify, among other things. Unsurprisingly, 31% of businesses intend to expand the proportion of AI in their operations.
This also holds true for robots. This market is anticipated to increase by 175 percent during the following ten years. In 2020, 20,000 robots are expected to be in operation, and the industry for robotics as a whole is expected to reach $1 billion.
To comprehend why firms are going through a digital transformation, it’s critical to keep in mind that DX gives them the chance to reduce operational expenses and improve process effectiveness. This results in improved customer service, production scheduling, and supply chain management in addition to decreased operational expenses.
Big Data also allows businesses access to enormous volumes of information from several sources, which improves their capacity to forecast market conditions. They are able to better serve client demands as a result.
As several examples of digital revolutions demonstrate, DX is already happening right now. It is necessary for a business to go through this procedure to stay competitive. If not, it will fall behind the always increasing competitors.
Benefits Of Digital Transformation For Businesses
Organizational operations are altered by digital transformation. This process includes workflow, systems, procedures, and culture. Each level of a business is impacted by this change, which pulls together data from many departments to improve collaboration.
Companies may connect the dots on the client journey in a way that wasn’t previously conceivable by utilizing workflow automation and sophisticated processing, such as artificial intelligence (AI) and machine learning (ML).
The cost factor is a major motivator for digital transformation for many businesses. Operational expenses are reduced when data is moved to a public, private, or hybrid cloud environment. It reduces the cost of hardware and software while allowing team members to focus on other tasks.
Data management is necessary because it is the biggest future weapon to fight complexities. Many businesses are struggling to manage the datastore, encryption, and data migration process just to boom in the future. Data is the asset of companies no matter if it is employee data, company data, system data, or whatever.
The digital transformation allows making end-to-end data into advanced computing that is now safe and secure from all data breaching activities. Digitalization made this happen by using blockchain technology. Also, data helps us to know the future trends, consumer buying patterns, analysis and evaluation, and much more.
Better Consumer Experience
Think about how your digital transformation may not just increase team productivity but also give your consumers more smooth, intuitive experiences. This includes everything from email correspondence to user portals, digital goods, and even the frequency of your outreach to potential customers.
Consumers want high standards for their online experiences. In addition, they are accustomed to having a huge selection, affordable rates, and quick delivery. The customer experience (CX) is the new front on which brands are competing. According to Gartner, more than two-thirds of businesses claim that their main competitive advantage is customer experience.
Profitable Deal With Digitalization
Digitalization is not only possible but it is also profitable. Businesses that transition to the digital economy become more productive and profitable. Organizations that have successfully undergone digital transformation claim higher earnings in 80% of cases.
Moreover, according to 85% of businesses, their market share has grown and they are drastically leveraging advancements and futuristic solutions to speed up their production and manufacturing. Leaders anticipate revenue growth that is, on average, 23% greater than that of competitors.
Boosting Agility Methodology
Organizations become more agile due to the digital revolution. Businesses may embrace Continuous Improvement (CI) strategies and boost their agility through digital transformation by learning from the world of software development. This creates a speedier environment for invention and adaptability while also opening the door to advancement.
Successful Brand Accompanied With Digital Transformation
There are multiple brands that revamp their working operations with total digitization. Some of them automate their customer support, some of them adopt ERPs, and some of them start businesses virtually.
Let’s see the example of Nike. How Nike transforms overall selling and marketing operations.
Nike is a footwear company, a leading international brand that provides quality footwear. But the point of discussion is how effectively they transform their marketing and selling process. They built a fully-managed mobile app development with the excessive use of AI algorithms and machine learning. The objective of building a mobile app store was to provide an exceptional experience to the customer with real-time recommendations.
Moreover, the best feature that is worth mentioning is the leg scanning feature. Users can choose the best type of shoes on a leg scan. The app scans the feet and builds a map of them using 13 different data points. Additionally, the app gives the business access to crucial data that will help it develop future footwear initiatives that will be even better.
The NIKE Plus app, which rewards loyalty program participants who are the most active, is a significant undertaking for the firm. The approach was used in Japan, where it significantly increased sales. The NIKE SNKRS application was equally successful, and sales of the prestigious shoes increased by 100%.
The digital transformation of NIKE demonstrates how innovation may also result in the modernization of a company’s internal processes. 6,000 footwear materials have been digitized to help design teams at companies operate more quickly and effectively. The pace of responding to market demands is directly impacted by this.
Disney, one of the most popular American Multinational media & entertainment, is also popular for the inclusion of technology in screening graphics. One of the greatest establishments by Disney is Disney park and resorts which gives the experience of real-life Disney-themed parks, restaurants, resort hotels, and shopping.
Moreover, they provide a digital transformation experience to the visitors by implementing MagicBand in the park. MagicBand enables visitors to reserve hotels, make payments, manage rooms, and so on.
Each visitor is then uniquely identifiable by their MyMagic+ straps, which gives them personalized experiences. The way the technology operates is by setting up customized interactive screens in the park.
The Disney streaming service is an additional illustration of Disney’s digital transition, and it has recently achieved considerable success. The company has previously licensed its material to companies like Netflix, but it has now opted to sell its content directly.
Users of the site (10 million on the day of launch alone!) now have access to the newest Pixar, Marvel, and Star Wars films. Additionally, the library offers a wide variety of other works, giving Netflix, Amazon Prime, and HBO GO stiff competition. It is the most popular Disney digital offering.
Compared to the old days, people are more indulged in digitalization and they are very excited to be more involved in digital transformation. Considering working with robots gets goosebumps but we know the efficiency and the effectiveness would be worth watching.
At MMCGBL, we have hundreds of employees who are IT solution experts that help B2B business owners to recognize where they are lagging and what they need. If you want to be competitive in the market you have to stay updated with digitalization.
Right now, let’s leverage the existing technology by building software, and applications based on advanced technology such as AI, ML, blockchain, cloud, and much more. If you are looking for the best solution or you want to identify what your business needs to explore doors of new opportunities for your business, it’s time to consult with the IT solution company. That’s how you can flex with digital transformation.