Digital transformation is the leading innovation that businesses worldwide are rushing to try.
These technological innovations allow companies to stay ahead in the competitive business landscape. With 89% of the world’s businesses having already embraced digital transformation, this trend is not to be overlooked.
At Askara Technology, we specialize in providing the digital tools businesses need to start their digital transformation journey. We help, guide, and collaborate with our clients in order to provide high quality solutions.
In this article, we will explore 4 digital transformation facts that business owners should know beforehand. This includes the definition, transformation types, industry examples, and the step-by-step process to start.
After reading this article, you will gain the understanding needed to begin your business’ digital transformation journey.
1. Definition
Digital transformation is the process of integrating digital technologies into all aspects of a business.
It’s not just about adopting new technologies into your business; it also involves reimagining the existing business processes alongside it.
Simply put, it’s a calculated experiment to find the most suitable digital processes that can improve your business performance and elevate your relationships with existing and future customers.
The most common reason behind digital transformation is to drive more innovation, enhance efficiency, and create a more agile and customer-centric organization.
2. Types of Digital Transformation
It’s also important to note that digital transformation is not a one-size-fits-all process.
Digital transformation can manifest in various types and forms, depending on the specific objectives and focus areas of a business.
Here are 5 of the most common types of digital transformation:
- Operational Transformation
This transformation focuses on improving the business’ operations. This can involve streamlining internal processes using digital tools to improve efficiency and reduce operational costs.
- Customer Experience Transformation
This type of transformation enhances the customer’s experience. This can include a series of new digital channels, personalized services, and improved user experiences.
- Business Model Transformation
This transformation improves the existing business model based on the market demand. It involves rethinking and adapting the core business model to leverage the digital technologies chosen for the business, typically for revenue growth and market expansion.
- Cultural Transformation
Unlike the other types, this transformation focuses on the people behind the business. Its purpose is to foster a culture of innovation, collaboration, and digital literacy among current employees to drive continuous growth for the business.
- Domain Transformation
Finally, the last type of transformation creates a new market opportunity for the business. It often involves analyzing the overall business strategy with the potential digital initiatives to expand their business into other attractive markets.
Depending on the business, you can implement either one type of digital transformation or focus on several types at once.
3. Industry Examples
Much like there are different types of digital transformation, there are also different approaches for each industry.
The digital approach highly varies for each business market, requiring a tailored strategy to address the respective challenges and opportunities.
- Retail
For instance, the retail industry has witnessed a reinvention of the entire customer experience, from browsing to checkout, due to digital transformation.
Their digital efforts include:
- Smart inventory management systems. This ensures well-stocked shelves with the right products, minimizing both overstock and stockouts.
- AI-driven personalized shopping experiences. This provides tailored product recommendations based on individual preferences and purchase history
- A seamless omnichannel integration. This allows customers to transition effortlessly between physical stores and digital platforms.
- Manufacturing
Meanwhile, the manufacturing industry is witnessing a profound transformation through the integration of digital technologies.
Various digital innovations were implemented, including:
- Internet of Things (IoT) devices for predictive maintenance. This anticipates equipment failures to schedule maintenance activities
- Robotics for automation. This streamlines production processes, improves efficiency, and ensures precision in manufacturing.
- Data analytics for optimizing production processes. This allows informed decisions about procurement, production, and distribution.
- Healthcare
Digital transformation in the healthcare industry has also enhanced patient care, operational efficiency, and accessibility to medical services.
Their digital innovations were done through:
- Electronic Health Records (EHR) systems. This enables professionals to access and update patient information seamlessly.
- Telemedicine platforms. This provides remote consultations and healthcare services, especially in regions with limited access to healthcare facilities
- AI-driven diagnostics. This contributes to more accurate and efficient medical interventions, enhancing patient care and operational efficiency
4. Step-by-step Process
Before you begin your business’ digital transformation journey, there are several steps that your business needs to complete beforehand so that you are ready.
Those steps include:
- Conduct a Digital Readiness Assessment – Evaluate your business’ current capabilities, identify important technological gaps, and assess the overall readiness.
- Define Clear Objectives – Clearly outline the objectives of your digital transformation process, ensuring its alignment with the core business goals.
- Build a Cross-Functional Team – Assemble a dedicated team with representatives from various departments to ensure a comprehensive understanding of the upcoming transformation.
- Invest in Employee Training – Provide training programs to enhance digital literacy across all departments and fully equip employees to embrace the digital changes.
- Select the Right Technologies – Choose technologies that align with your business goals and current capabilities, with the added potential for scalability.
- Implement in Phases – Roll out digital transformation initiatives in manageable phases to minimize disruption across existing processes and measure progress effectively.
Start your digital transformation with Askara Technology!
Digital transformation is a journey that involves strategic planning, cultural change, and the integration of cutting-edge technologies.
It’s not just about technology—it’s about reshaping the future of your business.
As the business landscape continues to improve alongside technology, businesses should embrace the change and empower both its employees and customers using the right technology.
If you are not confident in starting the transformation process by yourself, feel free to contact the Askara Technology team! With our digital solutions expertise, we can help provide the necessary tools and resources you need to begin the journey.