Regardless of the size of your business, one thing is certain: the digital transformation is a must for all companies, from small businesses to large multinational corporations.
And much more, the digital transformation is a cultural change that motivates organizations to constantly assume challenges, seeking the integration of digital technology in all areas of business and transforming the way a company operates and adds value to its customers.
But keep in mind that it’s not just about taking processes to the cloud.
It is also important to remember that organizations are at different times on this path of digital transformation. One of the most difficult issues in the digital transformation is how to overcome the initial vision problems for the execution of the process itself.
Even organizations that are on the right track to digital transformation face difficult obstacles, such as budgets, talent searches and cultural changes.
History of the digital transformation
Although technology and computing have been present in our daily lives for decades, the concept of digital transformation is relatively new. It came about in the 1990s when the Internet began to gain popularity worldwide.
Since then, the ability to convert traditional media, such as documents and images, has transformed our lives and affected many businesses. New businesses emerged, and others, in turn, closed their doors. Some cases are quite well known around the world, such as Blockbuster and Kodak that disappeared due to lack of innovation.
Today, digitalization affects all parts of our lives, changing the way we work, buy, travel, educate, govern and live. According to a publication by Think with Google: “In the last two years, 90% of all available data in the world has been produced. And in the next two, we will produce a volume equivalent to all the knowledge generated by humanity to date.”
The introduction of digital technologies has led to the creation of new business models and new revenue streams. Emerging technologies such as artificial intelligence (AI), cloud computing and the Internet of Things (IoT) are accelerating the transformation, while core technologies such as data management and analysis are needed to analyse the vast amounts of data that are the result of the digital transformation.
A study by Accenture shows precisely how digital transformation can deliver exceptional capabilities to businesses.
The digital transformation is not just about technology. We can say that she is a tripod formed by:
- People – Talent recruitment is just the beginning. Organizational structure and culture are equally important in successful digital transformation projects.
- Business – The right business strategy can drive the digitization of internal processes and the development of new business models.
- Technology – Emerging technologies such as AI and IoT, as well as core technologies such as data management and analysis.
Why is the digital transformation important?
A company can start thinking about the digital transformation for several reasons. But by far the most likely reason is a matter of survival for many companies.
Digital technology has always been seen by companies as a support tool, as something to improve productivity rather than as an active engine, a key aspect of business that is intrinsically linked to innovation. This view, however, has changed significantly as the Internet, mobile devices and connectivity have become more interconnected.
Walking towards what we call the fourth Industrial Revolution, it is time for companies to plan in detail the technological demand and raise it in the order of priorities and relevance, making it indispensable within the strategy and the business plan.
Factors encouraging the digital transformation
Look at these interesting facts: According to studies conducted by Kantar TNS in collaboration with Google, about 70% of consumers in Argentina, Chile, Colombia, Mexico and Peru consult the web before deciding to make a purchase and 93% claim to use online browsers to purchase or hire products and services.
This indicates how widespread is the use of the Internet. We can no longer treat it only as a niche marketing channel. Today, online channels are the easiest and most economical way to capture a large, well-informed audience.
Most people today stay connected through social networks. This is a highly profitable and expansive market for modern companies, allowing them to penetrate and evaluate customers’ buying patterns, so that they can offer above all personalized experiences to their consumers.
But it’s not just marketing that can benefit. The digital transformation offers numerous benefits and options, including inventory management, detailed insights, better real-time customer interaction, increased productivity, more reliable financial forecasting, more assertive business decisions and better resource allocation.
Supporting the digital transformation
On the business side, leaders have realized that by taking an active role, trying to simplify the current technology and eradicate any complexity in the process, the results are faster and more measurable.
Technology and innovation, when combined with digital business, support a company’s digital transformation, resulting in competitive advantages. It helps companies meet the demands of the ever-changing digital economy.
Another important point that we cannot fail to mention is that related to the millennials, also known as Generation Y. These people are fully involved in the latest trends in technology and welcome any developments in this regard. This means that companies must be prepared in the field of digital at all times.
And this is also related to the way this generation sees the possibilities of work and the adherence to self-employment, remote work and the constant growth of digital nomadism.
Reasons to go digital
Now that you’ve understood the importance of the digital transformation as a whole, let’s look at some reasons why it’s crucial to go through this process:
To be found!
In an online search, if we don’t find something in Google, for example, we assume it doesn’t exist. Customers actively search for information about products and services before making a purchase decision.
The right investment in Ads, for example, plus a comprehensive social media strategy will strengthen your business and be easily found by your target audience. Here at Workana you will find remote professionals who can be the key to this strategy in your business.
Shared and Cloud Processes
The digital transformation allows employees to be much more focused and productive by sharing data in the cloud and integrated processes to stay connected, whether physically together or separately.
This was made possible by different applications and other programs that helped in the organization of the companies and now they are able to archive data in a more efficient and effective way.
With the help of the digital transformation, companies can finally eliminate paper. This process reduces costs and protects the environment.
And, above all, if you switch to telecommuting as a strategy, the economy goes further: the employee does not need to commute to the office, eliminating a car from the streets and helping to pollute less (not counting other costs involved such as spending on power, electricity, expansion of physical spaces…).
Get to know your target audience better
Having a good online presence allows you to know your target audience better. You can also get real-time information on demographics, numbers of daily visitors to your website, including country of origin, preferences, tastes, etc. Companies can use this digital technology to outline growth and innovation objectives, for example.
The time for digital transformation is now and every company needs a solid digital strategy to make sound decisions if it wants to succeed.
In addition, you must use the digital transformation to expand the competition and strengthen the different aspects of your business and adopt new technologies.
I know what you are thinking: that the digital transformation can only be a sophisticated way to describe modernization.