Technology has created a market that’s more competitive than ever before. With the rise of the digital era, there is no room for companies that cannot or won’t shift to incorporate software and digital tools.
Moreover, companies aren’t able to implement small changes and allow them to satisfy the company’s needs for digital technology. Instead, they’re turning to digital transformations to keep their businesses ambitious in today’s current market.
We’re answering the key question, why are businesses experiencing a digital transformation, and more.
What is Digital Transformation in Business?
While many businesses may believe digital transformation is simply implementing certain technologies in small areas of their company, that’s not necessarily true. It’s less about updating any existing technology and more about adding new technology wherever it makes sense.
Digital transformation refers to a complete overhaul of the way a company functions. Within this overhaul, all facets of a business are reviewed. Then, digital technology, software, and tools are put into place to improve the overall operations of a company.
The purpose of this is to create a new business model that better fits into a rapidly changing, technological world. And, as we mentioned, it includes all aspects of a business. That involves internal processes, customer-facing policies and procedures, organisation, and even production processes and manufacturing processes, if necessary.
What Digital Transformation Means for Businesses
Digital transformations are changing the way business is conducted. Using the 4 main areas of digital transformation, businesses are working with up-to-date technology, which streamlines their tasks. They’re able to provide the best customer experiences possible and make more data-driven business decisions.
Ultimately, what digital transformation means for businesses is meeting business goals and finding more success.
What Are the Main Types of Digital Transformation
There are multiple subsects of digital transformation. All four of these areas encompass an overall digital transformation strategy.
- Core Business Processes: These are a business’s internal processes and procedures. The purpose of undergoing a digital transformation in this area is to modernise and update the workflows of employees and staff. This may include adding new software such as CRM tools or digital marketing.
- Customer/Client Experience: This refers to external processes that are client or customer-facing. Making it easier for customers to interact with your business digitally creates a more streamlined and better customer experience.
- Data Management and Analytics: The best business decisions are data-driven. These decisions are the most well-informed through data analytics, which leads to more success with business goals.
- IT Infrastructure: This refers to transformations such as implementing cloud services, operating with better quality technology daily, and integrating new applications to streamline business approaches.
Why Are Businesses Experiencing a Digital Transformation?
When it comes to the key question, why are businesses experiencing a digital transformation, there are many answers.
The benefits of digital transformations outweigh any hesitations in making the change. From increased productivity to working from home, to providing top-notch customer experiences, the reasons are endless.
But, the top 4 benefits of businesses experiencing digital transformations are:
1. To Improve Brand Awareness Through Digital Presence
Gone are the days of someone looking up a business in a phone book. Now, more and more people are finding businesses online. Whether that’s through having a website, blogging, or posting on social media, using a digital presence is a great way to improve brand awareness.
Not only are consumers finding more businesses online, but they’re also accessing these businesses from all over the world. Through digital transformations, businesses are no longer having to rely on a storefront being physically close to their consumers. They can now show up for customers worldwide.
2. To Be More Cost-Efficient
As the market continues to grow, more and more companies are entering it. That translates to more competition for every company with open doors. These companies need to have a way to stay competitive to keep their doors open.
Cutting down on extra costs throughout business processes, such as the production process or manufacturing process, is crucial for company survival.
Through digital transformations, it’s now possible to do that. The use of artificial intelligence and digitally-run machinery allows manufacturing companies and other businesses to finish necessary tasks efficiently without having to pay more for them.
3. To Adapt to a Changing Business World
It’s clear to see that the world is turning towards technology and digital products. While technology continues to advance at a rapid rate, businesses are seeing that they need to commit to a digital transformation now. Otherwise, they risk being left behind completely.
Whether it’s enabling working from home, or it’s creating a more streamlined production process, adapting to a changing world is necessary for businesses. While technology will, without a doubt, continue to improve, leaping toward digital transformation sooner rather than later will set companies up for the future.
4. To Better Serve Their Clients or Customers
Customers are no longer limited in their options when it comes to making purchases. There are many different choices they can make to have their needs satisfied.
Often consumers choose the path of least resistance. Whichever company makes the purchasing process the easiest, wins their business. And the company that can do so consistently, while providing the best customer experience, wins their loyalty. That can mean the difference between a business that thrives and one that barely stays afloat.
Successful digital transformations are an excellent way to provide customers with excellent service and care.
What Are Current Digital Transformation Trends?
Just like in most other areas of life, digital transformation projects have their fair share of trends.
Streamlining business tasks with technology can minimise risks, mistakes, and costs. One of the biggest digital transformation trends is implementing more automation within company processes.
This may look like adding in robotic processes to increase productivity in getting items to market and boosting the scalability of the business overall.
It can also look like adopting software for employees to use to do their daily work tasks more simply and efficiently. Drag and drop functionalities, like AirTable, are being used for tasks like project management.
Use of Artificial Intelligence
If business automation is at the forefront of digital transformation trends, then using artificial intelligence is the means to an end. Most other digital transformation trends fall under the umbrella of using AI, as well. From software to streamline productivity to infrastructure to increase cybersecurity, artificial intelligence is here to stay.
Increase in Cybersecurity Technology
With a rise in technology and the internet of things, comes a rise in safety risks. More and more companies are understanding that top-of-the-line cybersecurity measures are needed to keep their businesses and their customers safe.
Hybrid Workplace Models
The pandemic showed businesses across the globe that flexibility is the key to business success. Adding in software and infrastructure to allow working from home has quickly become the norm.
The use of cloud services and multi-cloud services to create hybrid workplace models continues to be one of the top digital transformation trends right now.
Contactless and Digital Payments and Solutions
The pandemic did quite a lot in the realm of pushing more companies towards digital solutions. And methods of payment are just one of them.
But this continues to be a growing digital transformation trend, even as the world begins to return to its normal state.
Customers can use their smartphones to scan QR codes without having to touch a physical menu at a restaurant.
They can also scan their phone at a checkout line rather than deal with touching a physical pin pad.
While this is a growing trend, it requires a strong digital infrastructure and support. Therefore, businesses find that working with a digital transformation specialist is necessary.
The Use of 5G
It’s been a topic of conversation for the last couple of years. And now, it’s finally taking off.
In a world that’s becoming reliant on faster connections, using 5G is the key to dramatically increasing speeds and reducing latency issues. Adopting 5G is one of the best ways to increase employee productivity and efficiency.
Why Should Students Consider a Career in Digital Transformation
Participating in digital transformation projects is on most businesses' radars now. However, many business professionals know they cannot do these projects alone.
They’re relying on the help of digital transformation specialists to get the job done. And careers in digital transformation are among the top jobs in Ireland.
As a digital transformation specialist, you’re a part of a lucrative career field that just about every single business operation needs. According to Statista, digital transformation project spending is expected to reach $1.8 trillion by the end of 2022. And it’s still expected to rise over the next several years.
Not to mention, as digital technology continues to expand, businesses will continue counting on specialists to aid in the bettering of their companies.
How Can Innopharma Help You Get Started with Digital Transformation
Innopharma is ready to help you take your first steps into the world of digital transformation. With multiple course offerings, you can earn a certificate or even a master’s degree in the field.
Through the programmes, you’ll learn the critical IT skills necessary to successfully operate in advanced manufacturing settings.
And several of our courses are available through the Springboard+ initiative. With Springboard courses, if you’re eligible, you can take select courses at Innopharma for free or at a reduced rate.
Get started with Innopharma’s digital transformation programmes today!