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Digital Transformation Basics With Exquitech
Written by: Exquitech Group
If you're exploring ways to improve your business with digital tools, then you've probably heard the term "digital transformation" more than a few times. But what is digital transformation, and why is this concept so important in the digital age?
In this article, we'll explore the concept of digital transformation and why it matters. We'll give some expert advice on what successful digital transformation strategies look like, and how solutions like Microsoft Power Apps and Copilot can help you accelerate digital transformation.
If you're not familiar with digital transformation, it can be confusing to differentiate between technical terminology. Let's break down the difference between some common terms: digital transformation, digitisation and digitalisation:
In simple terms, digital transformation means: the process of adopting digital technology in all areas of a business, creating new (or changing current) business processes to improve the overall efficiency of a business.
Digital transformation includes using digital technology to overhaul essential processes like customer service, sales, internal workflows and products, with the goal of creating a fundamental change in the business.
Two concepts related to digital transformation are digitisation and digitalisation.
Digitisation: the process of converting a physical aspect of a business process into a digital aspect, so that digital systems can use this information. An example of digitisation is taking paper receipts and converting them into digital receipts that can be used by accounting software. Digitisation is one small part of the digital transformation journey.
Digitalisation: the use of digital technologies to improve business processes and projects. For example, teaching employees to use new software platforms to help them launch products more efficiently.
To sum up, digital transformation encompasses a broader scope of activities (and can include digitisation and digitalisation) and is focused on driving cultural change by adapting new technologies.
One of the reasons many businesses are adapting digital transformation into their business models is the effect digital solutions can have on customer experience.
With digital tools like customer relationship management (CRM) software, businesses can gain insights into customer preferences and behaviours, which allows them to offer tailored solutions and support.
Many businesses that are undertaking digital initiatives are also using AI chatbots to improve customer experiences. Chatbots can provide instant responses to customer inquiries, improving customer relationships and reducing the workload for the customer service teams.
Relying on legacy technology is no longer an option when it comes to customer service, if you want to stay competitive. With so many other companies using digital tools, customer expectations include a faster more personalised customer experience.
One of the main benefits of digital transformation initiatives is streamlining business processes. By making technology investments, companies can:
Minimise errors
According to research, digital transformation can help businesses build dynamic capabilities, optimise their business processes, boost productivity, enhance product quality and improve value creation.
With more and more businesses switching from legacy systems to digital processes, it's becoming more important for businesses to implement successful digital transformations in their business models to stay competitive.
Businesses that successfully implement new business models based on digital transformation will have an edge over the competition, while those that rely on legacy systems will lag behind and could even struggle to stay in business.
Relying on legacy technology can result in subpar customer relationships, inefficient workflows and slower business processes compared to competitors.
Digital tools can also provide significant business value when it comes to growth. Digital transformation technologies can fuel overall business growth by opening up new revenue streams and enhancing market reach.
According to one study, 56% of CEOs said that their digital transformation strategy has resulted in revenue growth.
Companies that use digital technologies to analyse digital data can also make better-informed decisions, identify new growth opportunities and respond quickly to market changes.
Here are some examples of digital transformation that show how businesses can use digital tools to increase operational efficiency.
Banco Pichincha: Banco Pichincha, a Peruvian bank, implemented Microsoft solutions as part of its digital transformation strategy to digitise a range of business processes.
Their goal was to automate manual, everyday tasks across many different business units. By implementing nearly 50 different Power Apps. Banco Pichincha made a shift towards a digital business culture and achieved a 285% return on investment.
Lumen: Lumen Technologies, a global communications service provider, made the shift from traditional telecom services to a technology-driven, efficient and innovative enterprise. Their digital transformation strategy was made possible by using AI tools like Microsoft Copilot to increase productivity in a range of different departments.
According to Lumen, their sales, marketing and engineering teams use Copilot to be more productive and spend more time on the things that matter. For example, a seller would typically spend 4 hours on research for customer outreach, but with generative AI it takes only 15 minutes. For a big company like Lumen, 4 hours back each week equates to $50 million in revenue each year.
Digital transformation is essential for modern businesses, yet digital transformation success
is not guaranteed. Several key factors distinguish a successful digital transformation from an unsuccessful one:
Some features that tend to lead to positive business outcomes include:
1- Clear digital transformation goals: Business and IT leaders should have a well-defined vision and strategic plan to create a digital transformation framework that aligns with business goals.
2- Thorough change management: Success depends on an organisation's ability to manage change across the organisation and minimise resistance.
3- Employee training and engagement: Any business transformation requires adequate training programs to help employees use new technologies effectively, driving adoption and maximising the benefits of digital transformation.
4- Integration with current systems: Seamless integration with current workflows and systems is needed for operational efficiency. Businesses should also be willing to replace current systems when they are obsolete.
5- Organisational support: Continuous support can give employees and business leaders the ability to adapt to emerging technologies and challenges, maintaining the momentum of their business transformation.
Implementing new technologies takes time, money and effort, and unfortunately, not all digital transformation initiatives are successful. Here are some characteristics of unsuccessful digital transformation efforts:
1- Lack of strategic vision: Just as having a strong vision can lead to success, lacking a vision often leads to failure. Digital transformation leaders must have a clear vision of what they want to achieve with their digital transformation efforts. Simply digitising work processes because competitors are doing it can lead to failure.
2- Failed execution and delayed response: Timing is also important when it comes to digital transformation. Some opportunities for digital transformation must be taken immediately if a business wants to capture more of the market.
For example, Kodak’s recognition of the shift from traditional to digital print came too late. When attempted to make the shift to digital photos, their execution was poor. Other efforts, such as getting into printers came too late since competitors had already gained market leadership.
3- Lack of employee training: Employee training is a crucial aspect of digital transformation. Failure to properly educate employees on how to use new tools productively can cause confusion and inefficient use of digital tools, directly impacting the efficiency of business operations.
With emerging technologies occurring at a breakneck speed, maintaining an up-to-date technological infrastructure is not just beneficial but imperative for businesses that want to stay competitive. Digital transformation is not a one-time initiative, it is an ongoing process that requires continuous adaptation and digital innovation.
By staying current with technological trends, businesses can leverage the latest innovations to streamline operations, enhance customer experience and create new business value streams. Staying updated also allows businesses to anticipate and react to market changes swiftly, increasing the organisation's ability to secure a competitive advantage.
It’s possible to start your digital transformation on your own, but partnering with a digital transformation company like Exquitech can give your business access to valuable expertise on how to implement the latest technology.
By getting help implementing tools like Microsoft Copilot and Power Apps, you can quickly streamline your business processes and start seeing improved productivity as soon as possible.
Contact Exquitech today and get started with your digital transformation.
Digital transformation is a shift in business culture that is focused on using digital technologies to improve all aspects of business and deliver more value to its customers.
Digital transformation involves new tools and practices like using cloud computing, artificial intelligence and data analytics. Essentially, it's about embracing modern technology to stay competitive.
For positive business outcomes, here are the three keys to a successful digital transformation framework:
People: Digital transformation strategies should include all members of an organisation. Digital leaders should address people's concerns and support them throughout digital transformation.
Process: It's essential to identify the most crucial business process that will be affected by your digital transformation strategy, and then create a detailed plan for changing these processes.
Technology: Successfully transformation depends on the right people and processes, but also on choosing the best technology. Create a list of potential digital solutions, considering features, support, pricing and vendor reputation. Choose the tools that meet your requirements, as well as your people and processes.
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