Digital Transformation: a necessity for modern companies
Today, in order to succeed in business, every company needs to provide itself with the means of switching to a digital environment which becomes more and more vital for commercial strategy effectiveness. Because of changing consumer demand, evolving technology and competition development, companies have to be rethought and restructured as traditional marketing becomes currently obsolete. And this is where Digital Transformation comes in.
What is Digital Transformation?
Digital Transformation increases in popularity as technology progresses. One must have heard this expression or seen it online several times. Yet, this term is quite abstract and requires some appropriate explanations. The phrase is composed of two words, “digital” and “transformation”. First of all, we talk about transformation here when it comes to changing the fundamental components of a company, meaning its infrastructure and operating model. In short, a company needs to go through a transformation when it has not succeeded in keeping pace with its market, overtaking competitors and especially meeting customer demand. Then, let’s deal with the digital side. In a broader sense, digital stands for any technology that connects people and machines by means of information. Thus, Digital Transformation refers to all changes related to the application of digital technology in every aspect of human society.
How does Digital Transformation affect a company?
Some companies think of Digital Transformation as a supplementary technology cost or merely an afterthought addition to the traditional marketing strategy. For them, it’s just an optional way to boost their current marketing efforts. Yet, customers’ behavior and preferences are constantly evolving. Indeed, customers become more and more connected and more adept at using the new electronic and computing technologies, as the rest of the world. Proof of this is the increasing use of mobile devices like smartphones and others. Consequently, companies must catch up with this new reality in order to be successful and effective in their business. Failure to adapt to this dynamic technologic environment would involve a loss of customers, a lagging economic growth and a major competitive disadvantage for the concerned companies. On the contrary, those that are digitally transformed are able to collect and analyze their customers’ data, and therefore have a major advantage over slower competitors who are still using traditional techniques.
What is an effective Digital Transformation?
Many companies are digitally transformed, but not all of them have met with success. An effective Digital Transformation depends on the intensity of digital projects within a company and also on its ability to control transformational changes in order to provide positive business results. A good Digital Transformation should also enable a company to establish a harmonious collaboration between its IT systems of record and the digital initiative, to develop and implement new strategies out of updated customers’ data, to increase the effectiveness of their existing technology, etc. Such a successful transformation requires an agile approach to architecture, an entire company restructuration, and the change of anything that must be changed in order to create the perfect harmony between corporate marketing and organization, customers’ behaviors and demands and the evolving technology.