Read Everything About Digital Transformation

Today, we Netflix and chill!

Well, there was a time when Netflix wasn't chilling at all. On the contrary, it was about to disrupt the entire media and entertainment industry and create a whole new video streaming industry!

Netflix's transition from a pay-per-item model to an online video streaming service is still considered to be one of the best examples of Digital Transformation yet.

In 2007, Netflix went "digital" quite literally after realizing the potential of streaming content thanks to YouTube. It offered a growing library of on-demand content at ultra-competitive prices. Most importantly, it innovated its business model to ensure that it not only survived but thrived. That's Digital Transformation in action: taking advantage of available technologies to transform how a business operates while providing an edge over its competitors.

Now that you know a little about Digital Transformation, let's dive in deeper to understand it!
 

What Exactly Is Digital Transformation?

Depending on the business structure and domain, companies could choose numerous technological implementations that may align perfectly with their goals; thus, the meaning of Digital Transformation might look different for each company. For a manufacturing business, "Digital Transformation" means investing in automation. In contrast, it could mean moving from pen-and-paper registries to digitally streamlined software for hotels.

Yes, we know that opens the topic to a much larger level. However, at TechDogs, we prefer keeping things simple for you, so here it is. The perfect blend of digital technologies and solutions that help businesses improve their operations and offer more value to their customers is referred to as Digital Transformation. It encompasses not only the application of technology within the organization but also the creation of new business models by redefining current systems.

Let's look at how it all started. Don't worry; we won't dive deep into the Mariana Trench of Digital Transformation; instead, we'll give you a quick rundown of its history.
 

The Story Of Digital Transformation So Far

Although Digital Transformation is currently dominating the discussion, it is not a new notion. The roots of Digital Transformation can be traced back to Claude E. Shannon's groundbreaking paper "A Mathematical Theory of Communication," published in 1948, which paved the way for digitization as we understand it today.

It all started when digital channels or websites started connecting companies with their customers. After that, digital processes emerged to support the resultant customer interactions. As companies' digital ambitions quickly grew, they soon needed dedicated digital tools to manage these new channels – think websites, chatbots and social media. That’s the gist of it anyway!

By the early 2000s, smartphones had become as common as computers and movie theatres began displaying advertisements encouraging customers to turn off their phones. The existing systems were a result of constant improvements made till the late 2010s, driving the Digital Transformation wave. The latest wave, which combines mobile technologies, IoT devices, cloud computing, social media and Big Data to form a cutting-edge platform, is at the heart of all Digital Transformation initiatives. By the end of the 2010s, Digital Transformation gave us blockchain applications, artificial intelligence, chatbots and other technologies that have permeated our daily life.

Surely, you must be wondering how it all comes together? Read on!
 

How Does Digital Transformation Work?

 
Digital Transformation is not a one-step process; it is a mixture of small changes that make up the entire reimagining of your business. Below are the steps of Digital Transformation that you can implement to scale up your business.
 

• Step 1. Strategize And Determine Objectives:

  Strategize just as Batman did in Justice League! We say this because it is the first and most crucial step in adopting any Digital Transformation initiative. Assess your current processes and develop a Digital Transformation plan to achieve your expected goals. Simplify your goals to a set of objectives if needed, so that Digital Transformation technologies will help you achieve each goal.

• Step 2. Experiment With Initiatives:

  Yes, we know it is difficult to execute change and make decisions without first determining whether it is effective and well-received by all stakeholders. Isn't it? Keep in mind that experimentation fuels creativity and innovation. Encourage your employees to think of different approaches to a challenge. This will help you find the perfect match for your business and workforce.

• Step 3. Bring In The Experts:

  Each Digital Transformation project requires identifying technical roles and requirements. It necessitates the hiring of experts, system integrators, data analysts and user experience designers. Since each expert will play a distinct function in the entire project, you should be clear about what you intend to accomplish by recruiting them. (P.S. Did you know that Netflix hired experts whose job was to binge all day to review and assign each program to its correct tag!)

P.S. Did you know that Netflix hired experts whose job was to binge all day to review and assign each program to its correct tag!
 

• Step 4. Implementation Of The Strategy:

  The next phase is to implement an enterprise-wide Digital Transformation strategy visible to all stakeholders and in sync with them. Implementation is tough since it is a trial-and-error process for your company and the fact that you have never done it before makes it more challenging. However, provided you conduct the appropriate tests, you should have no trouble putting your approach into action. Installing the correct systems, altering your existing IT infrastructure, inculcating feedback and developing flexible and agile digital upgrades will make it easier.

• ​Step. 5 Empowering And Adapting:

  Empowering your staff through Digital Transformation is probably the most critical component of any Digital Transformation initiative. As part of the cultural shift, you must encourage individuals to collaborate more effectively using new digital technologies and embracing the change constructively. If you’re wondering if it is really all coming together, allow us to lay down the benefits of Digital Transformation to remind you that it's totally worth it!

   

How Does Digital Transformation Benefit You?

While the rate of return from Digital Transformation initiatives depends on a combination of factors, the correct technological integration can significantly improve how your company operates and how customers’ interaction improves with it. Let's get started with some of the main advantages we've listed here -
 

• Increases Productivity While Reducing Labor Costs:

  Using technology to work more efficiently is one of the most impactful benefits of digitally transforming your business. For example, the time and money you spend on training new employees and keeping track of all assets and resources can quickly get out of hand for enterprises. Digital Transformation offers a solution through automated HR Management Tools and Robotic Process Automation (RPA) bots that cut down costs and boost productivity.

• Improves The Customer Experience:

  Customers want a good experience across all touchpoints - mobile apps, social media, email and even live chat. Digital Transformation is driving enhanced customer experiences by helping companies be omnipresent across all social platforms. It is changing the way businesses run by bringing entirely new ideas about customer experience to the table. With Digital Transformation, organizations are taking a step back and streamlining entire operations to provide better customer experience.

• Boosts Innovation:

  Digital Transformation brings new opportunities for companies to create products and services that they couldn't previously imagine. Remember the Netflix example? Coming up with new and exciting ideas can be a game-changer for organizations. Digital Transformation encourages employees to think creatively and as automation takes over all the mundane, repetitive tasks. The bonus is that it also gives your customers a much better experience.

“Your future hasn’t been written yet; no one’s has," Dr. Brown famously said in Back to The Future. However, with Digital Transformation we’re sure whatever the future, it’s going to be bright!
 

What’s The Future Of Digital Transformation?

In our modern digital landscape, technological innovation has become one of the cornerstones of competitive differentiation. The rate at which technology changes and evolves is incredible. Healthcare, IT and manufacturing industries have seen major changes in the last few decades thanks to Digital Transformation. Artificial Intelligence (AI) and Machine Learning (ML) will enable more industries to automate nearly all operations, resulting in smooth, error-free processes and workflows. Moreover, integration of emerging technologies such as quantum computing and IoT will be a total game-changer for Digital Transformation as a whole.
 

Conclusion

 
"It is not the strongest of the species that survives, nor the most intelligent," stated Charles Darwin. “It's the one that can adapt to change the most."

Digital Transformation not only offers us more possibilities than we've ever had before but also feeds creativity, innovation and a willingness to accept change. To ensure a pole position in the digital race, businesses and individuals must embrace the new paradigm of rapid change – that is, Digital Transformation.  So, with that in mind, when do you think your organization will implement a Digital Transformation strategy?