Digital Transformation is the Key to Optimization
In today’s information era, digital transformation plays a significant role in the organization. Business development emanates from the company’s information. Thus, the absence of a sustainable digital environment may incur unrealized transaction costs for the business.
Digital transformation refers to optimizing business opportunities brought about by digital technologies that streamline business processes and improve competencies across the enterprise. In short, digital transformation leads to business transformation.
Business Impact of Digital Transformation
In order for businesses to scale up, it is important to note what the consumer needs, especially that customers’ demands vary rapidly. At present, with the existence of COVID-19, customers prefer businesses that attain technological capabilities that can offer online shopping, contactless delivery, and online payments.
For these reasons, companies adopted these technological changes to sustain profitability. The transformation brought by innovation does not only address the current situation but also lowers the operational costs while improving products and services.
Enhancing products and services require significant data from customers. Thus, business owners should know that poor data structure and business systems hamper the acquisition of key information for decision makings.
Key Factors to Successful Transformation
According to Capgemini and MIT Center for Digital Business in a three-year study, “business functions, processes, activities, assets, models, and activities are interconnected and interdependent in the aspect of digital transformation”. It is clear that the concept of digital transformation does not limit to the IT department alone but it impacts the entire level of the organization.
Moreover, the three pillars of the digital business transformation are customer experience, operational processes, and business models. Each of these pillars defines the different elements that attributes to the success of obtaining a sustainable digitized environment for your business.
The challenge to the business leaders is to constantly seek to innovate. Falling into business entropy is dangerous to any organization. With the help of digital transformation, business leaders should ensure that the change should spur improved productivity, exceptional customer experience, and most importantly, gaining a significant competitive advantage.
