What is Digital Transformation And Why Does it Matter Now?

How Digital Transformation Reshapes Business Operations?

In today's era, technology and digitalization play a crucial role in human daily life. People use technology to communicate, find information, work, and for entertainment. Almost everything relies on these things. Without the internet, we would find it difficult to function.

So, businesses need to adapt to the technology trends to stay current and survive. Understanding digital transformation helps businesses keep pace with the digital world and achieve success amidst high competition. At the very least, it prevents them from falling behind.

Let's take a look at what digital transformation is and why it's important!

What is Digital Transformation?

Digital Transformation is the application of digital technology to streamline work processes and marketing strategies. Its main goal is to increase efficiency, productivity, enhance customer experience, and modernize organizations, while also creating new business opportunities.

Examples of implementing digital transformation in business include transitioning from paper-based or hard copy document storage to online documents, using online meeting platforms like Zoom, Google Meet, or MS Teams for client meetings or team collaborations without the need for face-to-face interaction, or even shifting from cash transactions to digital payments, QR code scanning, and credit card payments. These digital transformation cases became particularly evident during the COVID-19 pandemic when people were confined to their homes, relying more on digital technology for daily living. Even as the pandemic subsided, our society didn't revert entirely to its pre-pandemic state. Instead, new technologies continue to develop constantly, making it almost imperative for businesses surviving in this era to adopt them.

Why is Digital Transformation important?

In addition to enhancing efficiency, digital transformation also helps reduce organizational costs. For instance, previously, we might have needed to hire many administrators to respond to a large volume of chats to meet customer demands. But now, with chatbots, common questions can be answered 24/7 without the need to hire as many people. Additionally, enabling employees to work from anywhere saves on electricity and office air conditioning costs. There's no need to spend on renovations to accommodate a larger workforce either.

Digital transformation makes our organization appear modern and provides convenience to customers of the new era. For example, facilitating online money transfers, creating websites for customers to shop from anywhere, implementing QR code ordering systems for food, and more. These technologies enhance the customer experience, encouraging repeat patronage and ultimately increasing customer loyalty. This, in turn, stimulates higher sales volumes.

Implementing Digital Transformation in Business

Defining Brand Strategy Clearly

Before implementing any digital technology, a brand should have clear goals and vision regarding what it aims to achieve through digital transformation. This could start with conducting a SWOT analysis or analyzing the strengths, weaknesses, opportunities, and threats of the business to gain better self-awareness. Subsequently, the brand's strategy should be aligned with this information.

For example, a clothing store business might have goals to increase sales, expand its customer base, and create a great customer experience. Through business analysis, it may find that its strengths lie in high-quality products at affordable prices, but its weakness is the lack of an online ordering system. So, the brand may devise a strategy to develop an online ordering system, which could involve creating a website, using social media, or e-commerce platforms as appropriate.

Choosing Technology Suitable for the Business

Suitability here encompasses the type and size of the business, as well as budget considerations, while also taking into account existing and emerging technologies.

For instance, a real estate business may opt for web-based channels to develop an online booking system and enhance the viewing experience by incorporating a 360-degree virtual tour feature on their website. This allows customers to visualize properties before making an in-person visit, thus aiding their decision-making process.

Enriching Knowledge and Developing Employee Skills

When implementing digital transformation, it's essential not to overlook supporting courses to enrich knowledge and enhance skills among employees. For some, technology may be a new concept, and understanding it may not come naturally. Therefore, it's crucial to provide support for employees to ensure they can deliver a great customer experience. Business owners should prioritize this aspect by offering training on online customer service or utilizing the organization's website system, for example.

Monitoring and Regular Evaluation

As technology evolves daily, what worked today might not yield the same results tomorrow. Therefore, businesses should continuously monitor and evaluate their operations to gather data for improving and enhancing digital transformation within the organization. This could involve tracking online sales, customer numbers, assessing customer satisfaction, and evaluating whether e-commerce platforms remain effective.

It's evident that digital transformation is crucial for today's work environment, as our world has changed significantly. What used to be recorded on paper is now stored in computers or tablets. Some businesses no longer accept cash payments, and the traditional office setup has transformed into remote work enabled by digital devices. It's safe to say that even more significant changes may occur in the future. If organizations fail to adapt, they risk losing customers and missing out on business opportunities.

Businesses striving to keep up with the digital era can contact Jenosize today. We specialize in technology solutions, ready to design and implement digital transformation systems tailored to your business needs. Let us help you achieve your goals and generate better results than ever before.