What is Digital Transformation and why is it happening?
The world is continuously evolving, and so should your business. But what does Digital Transformation consist of and how can one achieve it?
The last couple of years have shown us the importance of having a solid digital presence and how heavily the digital component can weigh on the success/failure scale.
The number of people and companies adopting digital technologies is on the rise. If used properly, they can make one’s life easier and businesses more efficient and profitable.
Before we move forward, let’s clear up what Digital Transformation involves.
What is Digital Transformation?
Simply put, Digital Transformation is the incorporation of computer-based technologies into a business’ processes, products, services, and operations. Or as Gregory Vial put it in a 2019 research paper , Digital Transformation can be defined as “a process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing,
communication, and connectivity technologies.”
Nowadays, it is no longer a rarity to focus on the digital aspects of your business but rather a necessity. The economic and business environment is constantly evolving and highlights the need for companies to adapt, to find new and modern ways to provide customers with valuable products and services.
It’s not about whether you should approach Digital Transformation anymore, it’s about when and how to do it.
Why is Digital Transformation happening?
Now that we covered what Digital Transformation is, it’s time to address why it evolved into a must for the majority of businesses.
The Digital Transformation concept has been around in all sorts of forms for decades already.
It is a continuous goal because what it can bring to the table will always be of interest to companies.
Digitally transformed companies utilize ever-evolving technology with two main goals: to reduce expenses and to boost productivity. These are two pillars of any successful business, so it’s only natural that decision-makers will pursue them.
But the advantages of a well-performed Digital Transformation do not stop here.
With the correct technological help, companies can get high-quality products and services out on the market. Through digitalization, businesses can streamline their processes and reap benefits such as waste reduction and shorter production times.
Speaking about time… We all know how valuable it is. Nowadays, customers expect quick service and same-day delivery. Basically, a quick resolution to any problems they might face.
Waiting times are crucial for customer satisfaction and need to be continuously addressed. This is another area covered by digitalization, which can provide everyone involved in the process, from suppliers to the production line and those out in the field, with the necessary information and tools for successful task
Another area where Digital Transformation can come in handy is customer feedback. Production line workers and supervisors would greatly benefit from having customer feedback at hand, from suggestions to complaints. This way, they could tweak the production processes for results in line with customers’
A successful Digital Transformation initiative could also translate to increased employee satisfaction and, subsequently, retention. Digitalization generally simplifies the day-to-day tasks of employees, which is a win-win in the end: content and productive employees bring to life new ideas. Some may even
turn into difference-makers.
How to approach Digital Transformation?
As we just learned, a carefully implemented Digital Transformation can take companies to the next level.
Nowadays, this view is shared across the business climate, with the adoption of technologies sped up by the COVID-19 pandemic.
Companies of today’s economic landscape realized they cannot be left behind and are acting accordingly, investing at least 5% of their annual budgets in Digital Transformation processes, per PTC.
But how do they go about it?
According to a survey conducted by McKinsey, what most businesses aim to achieve through digitalization is a transformed operating model of the organization, with far more importance on the digital part.
At the same time, the transformations are profound. In most cases, we’re talking about changes in multiple functions of the business or the entire structure. But no matter what your goals might look like, there are a few crucial steps in every Digital Transformation initiative, starting with identifying the objectives and mapping out the road.
Helpful questions here might be “How can we increase customer satisfaction?” and “How can we turn the business into a more efficient and cost-effective one with the help of technology?”
Always keep in mind customer needs.
Next up, the need to establish new processes will arise, as KarbonHQ pointed out. It’s a transformation, so, naturally, some operational aspects will change to streamline the processes.
This is closely related to the choice of technology. Not every technology out there will fit your business model, and that’s normal. Instead, you should look for tools or platforms that complement your efforts and are preferably customizable.
Now that you have all the pieces of the puzzle in place, it’s time to execute the plan. Have patience, take a step back and adopt an open-minded approach. And don’t forget to check and address the progress occasionally.
Make it easier for yourself with eTag Fuse
Digital Transformation is a complex yet fascinating subject. While it can elevate a business, its implementation strategy is of utmost importance since it can make or break the whole initiative.
The good thing is that you can always rely on a partner to guide you through the process.
Explore eTag Technologies’ Fuse, a digital integration platform we designed to assist businesses on the Digital Transformation journey.
Fuse makes it easier for you. You’ll get stress-free through the entire process since the platform does the heavy lifting for you.
With its solutions, Fuse solves many challenges businesses face. It keeps your data safe, makes it easy for you to access it, provides employees and users with a single pane of glass view of the digital assets, and expands alongside your needs.
Let Fuse help you on your Digital Transformation path. Contact us to learn how it can serve your business.
Schedule an eTag Fuse® Demo Today
If your organization is undergoing digital transformation, eTag Technologies can help you achieve your goals. Contact us today to request a demo of the eTag Fuse® platform.
 Vial, G. (2019). Understanding digital transformation: A review and a
research agenda. The Journal of Strategic Information Systems, 28(2), 118–144.