Digital Transformation¶
Digital transformation is the process by which companies embed technologies across their businesses to drive fundamental change. It involves an organization to adapt and implement digital technology and innovate its products, services, and operations. This shift translates traditional business processes into digital ones.
Digital Business Transformation is the application of technology to build new business models, processes, software and systems that results in more profitable revenue, greater competitive advantage, and higher efficiency. Businesses achieve this by transforming processes and business models, empowering workforce efficiency and innovation, and personalizing customer/citizen experiences.
Benefits of Digital Transformation¶
1. Enhanced data collection - Digital transformation in business leads to improved methods of gathering data. This means that companies can collect information more efficiently and from more sources than ever before. With advanced digital systems in place, they can pull together all sorts of details about how they operate and what their customers want. This new approach to collecting data is a big part of what makes digital transformation so valuable for businesses today.
2. Make data driven decision - Digital transformation can upgrade the kind of data businesses get—it can be more complete, more precise, and more relevant. Enhanced quality data helps every part of a business make smarter choices. With digital transformation, companies aren't just trying to understand their data better; they also want to use the information to make their whole product life—from creation to customer use—better and more connected. Take technologies like the Internet of Things (IoT), for example. They can show you what's happening in a factory at any moment or how a customer is actually using a product after they buy it.
By looking at this data, businesses can spot where they're not being efficient and learn more about how customers interact with their products. This information is super helpful for making improvements in the next version of the product.
3. Imorove customer experience - Transformations can lead to improved customer service, better product quality, more innovative features, and faster delivery. Identifying customer pain points and feedback is a crucial starting point for digital transformation initiatives.
Digital transformation can enable a closed-loop engineering process, where real-time performance and usage data inform product development, leading to designs that better meet customer preferences and needs. It's important for digital transformation to create efficiencies for teams and provide customers with seamless, intuitive experiences. This improvement in customer experience can be reflected in all digital touchpoints, including email interactions, user portals, digital products, and outreach strategies. Customers have high expectations for digital experiences, such as a variety of choices, competitive pricing, and rapid delivery.
Customer experience is now a key area of competition among companies, with many businesses recognizing it as their primary competitive parameter. Empowering customers to make decisions about their data can enhance their autonomy and trust in the brand.
4. Cost reduction - Most companies start their digital transformation by trying to save money. Gartner says about two-thirds of these projects aim to cut costs. They use technology to make things work better, help employees do their jobs better, spend less money on running the business, and make their customer service smoother.
The great thing is, when companies focus on cost reduction , they often find other good things happen too. For example, if they make their factories work more efficiently, they can save money on energy and avoid losing money from having to stop work. Fixing problems for customers also becomes easier and quicker.
5. Stronger resource management - Digital transformation brings all a company's information and tools together. Instead of using lots of different software and databases, it combines everything into a set of tools that make everything simpler and cuts down on the need for so many different service providers.
In 2020, big companies used around 900 different applications. Digital transformation helps by linking all these applications, databases, and software together into one main place. This makes it easier to understand and use business information.Digital transformation isn't just one part of the company; it affects every area.
It can make processes better and more efficient everywhere in the company. From sales and marketing to finance and the C Suite, every department leverages sensitive data. It’s important to optimize and secure data everywhere it flows, while equipping teams with easy-to-use tools to get their jobs done.
6. Improve Time-To-Market - Business is moving faster than ever, with customers always looking for the newest products. This means companies have to be quick in designing new products and getting them made and delivered. Digital transformation can help speed up both creating new products and managing how they're made and sent out.Companies are also starting to use agile methods and tools, which make it easier to come up with new ideas and bring products to market faster.
Tools that work in the cloud, like Onshape and Arena, let people work together more easily, solve problems sooner, and make the whole process smoother.
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