Long-term success in today’s Business world is largely based on how well a business can leverage Digital technology to deliver value to its customers. Contrary to popular opinion, Digital Transformation (DX) is not about technology but about how we think about technology. It is more about the mindset than the grandeur of implementing new technology.
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This post is met to help the entrepreneur understand what digital transformation is about, why it is important and how you can begin to rethink digital technology to reposition and transform your business.
What is Digital Transformation?
Digital Transformation (DX) is the process of incorporating digital technology into a business’s products, processes, and strategy. If this is your first time hearing this term, this can sound like another computer grammar or social media buzzword, but it is not. The only big deal is how much scale an organization or business is implementing digital technology into its processes to deliver value to customers and make profits.
If you have been using the internet in any way to do business, you are already engaging in digital transformation on a small scale. However, it is much bigger and deeper than the mere use of the internet to do business.
According to Techtarget “a digital transformation initiative are large in scope and requires an examination and reinvention of all facets of an organization, from supply chains and workflows to employee skill sets and org charts, to customer interactions and value proposition to stakeholders”
3 key Domains of Digital Transformation
MIT Sloan Management Review highlights three key areas of digital transformation:
1. Customer Experience — working to understand customers in more detail, using technology to fuel customer growth, and creating more customer touchpoints.
2. Operational Processes — improving internal processes by leveraging digitization and automation, enabling employees with digital tools, and collecting data to monitor performance and make more strategic business decisions.
3. Business Models — transforming the business by augmenting physical offerings with digital tools and services, introducing digital products, and using technology to provide global shared services.
Key Drivers and Technologies of Digital Transformation
Technology in its variety is all responsible for the disruption we are facing today. Let us take a dive into some of them:
Machine Learning and A.I: Provides faster and more accurate insights for decision making around sales, marketing, product development, business analytics e.t.c.
Cloud Computing: This enabled businesses and organizations to have access to data, software, server, and storage online anywhere at any time without having to use their local device
Mobile technology: Business transaction, learning, and communication on the go anytime and anywhere using your mobile phone.
Social Media platform: Connecting with friends, family, customers, and business associates is now easier than ever.
Internet of Things (IoT): Functions at the operational level, a network of physical devices integrated with sensors, software, and other technologies to connect and exchange data with other devices and systems over the internet to provide insights and analytics into a company’s operations both internal and external.
Blockchain Technology: Provides a highly secure decentralized way of keeping and transferring data for businesses as well as financial transactions.
Why is Digital Transformation Important for Small Businesses?
Digital Transformation is essential for businesses and enterprises of any size and the approach will be different for all depending on skill and budget. Sadly, small and medium-sized businesses find this very intimidating because of their limited budget.
The good news is that it is very much possible to reap the reward of Digital transformation when approached strategically and systematically. Digital transformation can help SMEs and Startups lower operational costs and increase productivity. DX can also help SMEs improve customer experience and boost sales.
Bottom-line
Digital Transformation (DX) help businesses and organization improve product development, business processes, and strategy using digital technology such as Cloud Computing, AI, Social media, IoT e.t..c. By implementing the right technology for your business and with the proper mindset about technology, every business can improve and take its business to the next level. Digital technology is not all about using technology to improve business but how we think about technology.
Do you need assistance with putting the right digital strategy in place in other to take your business to the next level? We offer 30 minutes of free consultation to help you get expert insight and guidance into your business strategy including marketing, web design e.t..c.
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