What does digital transformation mean for business?

In a challenging business climate, companies need to seize every competitive advantage – and increasingly, those advantages are digital. By 2018,over 89% of executiveshad adopted a digital-first business policy. However, as we discussed earlier, many digital transformation projects get stalled by poor communication and planning.

Melissa Swift, U.S. Transformation Leader at Mercer, agrees with Swanson’s take that that the word «digital» has a problem because it means a lot of things to a lot of people.

Enables Future Digital Growth

As part of the digital function, executives were also tasked with digitizing the entire ecosystem as well as a separate department with a task to build and maintain the resulting ecosystem. Despite years of discussion, understanding what digital transformation means for established companies remains a daunting challenge. Leaders put in charge of a digital transformation feel pulled in many different directions, with competing demands from IT, marketing, sales, and operations.

Automation technologies also help many IT organizations gain speed and reduce technical debt. Digital transformation tears down hierarchies and silos, replacing them with cross-departmental collaborations that empower employees at all levels. From the C-suite to the https://globalcloudteam.com/ frontline workers, everyone needs to be informed of what you’re doing, why you’re doing it, how things will change for them and what to expect. The more traditional your existing corporate culture is, the more time and education it may take to achieve strong buy-in.

How to measure digital transformation ROI

Hinchcliffe calls seamless customer experience «the most important discriminating factor for how a business will perform.» Enable customers and employees to complete their experiences autonomously. The healthcare industry is leveraging a variety of digital capabilities to create patient-centric and value-based outcomes that benefit patients, providers, and payers―while reducing costs at the same time. Virtual doctor visits and networked electronic medical records are just two modes of digitalization that are transforming healthcare. While in the past, IT was solely responsible for digital transformation, that’s no longer the case.

It’s an ongoing process that must be constantly nurtured and evolved. Implementing technology without looking at how it fits in the big picture can create more challenges than benefits. Digital transformation should begin with a vision, and any projects should stem from that vision.

What are digital transformation challenges?

Today, increasingly more CIOs consider cloud migration as a primary measure in security risk mitigation. Depending on the industry, transformation implies either a full replacement of physical value with digital or building an integrated physical+digital value. Add a new revenue stream that is solely based on the digital community and doesn’t intersect with the physical one. Moreover, as we havereported, «Digital transformation efforts are ongoing and evolving, which can render traditional business value calculations and financial governance approaches less effective.» It’s early to guess which long-term consumer behavior changes will stick.

The Domino’s app was born and delivery is now made even easier as e-bikes and autonomous delivery have transformed the business into one that brought in revenue of $4.36 billion in 2021. You canlook at some of our case studies to see how global companies identify the gaps in their business. Another most revealing shift in the cloud transformation has happened relatively unnoticed.

Streamline the partner experience

Digital transformation can integrate applications, databases, and software into a central repository for business intelligence. It’s vital to evaluate how that customer data is being collected, stored, analyzed, and shared as part of this process. When you’re rethinking your tech stack, you’ll want to ensure that sensitive data flowing into and out of your customer relationship management software and other platforms is protected with a layer of SaaS data encryption. In every case, though, starting a digital transformation journey requires a new mindset.

• Two concepts related to digital transformation are digitization and digitalization.
• «Today, with a vast portion of the workforce now remote, employee experience of digital technology has gone from «nice to have» to «the only way work gets done.
• In other words, of the three main areas of digital transformation mentioned above, “cultural transformation” is often the least talked-about but in reality may be the most crucial of all.
• Digital transformation puts technology at the core of business strategy.
• As Forrester suggests,true transformation is a journey, not a destination.