Digital transformation is driving business innovation for companies in many industries. If done right and strategically, can help increase revenue and create better relationships with customers. And it’s an effective solution that has helped several well-known companies to thrive. So, in order to understand it better and learn how we can use it, let’s find out how big companies are using it and what we really need to know about how technology is reshaping our world.

What is digital transformation vs. digitalization

Digital transformation is the way we use technologies to create new business processes, culture, and customer experience. And is our only way to meet changing business and market requirements. If digitalization is using digital data to simplify how we work, digital transformation adds value to every customer interaction. But, in order to understand it better, let’s take Netflix as an example. 

Digitalization helps Netflix not only to stream video content directly to customers, but also to obtain valuable data about their viewing habits and preferences. Of course, those insights are not going to change how Netflix is doing business. In fact, they will only help Netflix to work faster and better now that its data is instantly accessible and not trapped in a file cabinet somewhere in a dusty archive. 

But, the real reason why we all love and binge Netflix is the way they use data to inform everything from the design of its user experience to the development of first-run shows and movies at in-house studios. And this is digital transformation in action: taking advantage of available technologies to inform how a business runs. 

Digital transformation is changing the way business gets done and, in some cases, creating entirely new classes of businesses. With digital transformation, companies are taking a step back and revisiting everything they do, from internal systems to customer interactions both online and in person.

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Adapt your business to leverage this new digital era

Of course, digital transformation is not only a process for big companies like Netflix. Building a 21st-century business on stickies and handwritten ledgers just isn’t sustainable. Thinking, planning, and building digitally sets you up to be agile, flexible, and ready to grow. This is the reason why, especially now in a post-Covid era, we have to think digitally first from the start.

We are now living in a world of permanent connection. Digital transformations have reshaped how companies approach customer service. The old model was to wait for customers to come find you, whether in person or by calling your number. But the rise of social media has changed service much like it’s changed advertising, marketing, and even sales and customer service. Progressive companies embrace social media as a chance to extend their service offerings by meeting customers on their platforms of choice.

But why stop there? There is some much change and improvement we can have if you start using digital transformation. In order to get inspired, here are three examples of how important companies changed for the best their business strategically using digital transformation: 

  1. Hasbro, there is data when kids play: in 2012, toy and game manufacturing and marketing company Hasbro realized its market share was slipping. To increase their sales, they began better gathering and using customer data to create more successful targeted marketing campaigns. They made a major push into social media focusing on the parents who buy toys and games. And the digital data they gathered helped the company to better understand and be proactive in dealing with its customers.
  2. Nike just did it: when they felt they were starting to become sluggish and outdated, they started to focus on more powerful data analytics, updated its e-commerce strategy, created stronger digital marketing campaigns and ramped up its direct to customer sales. More efficient and effective use of digital consumer data led Nike to open concept stores, create more membership opportunities and improve the customer experience online and through apps.
  3. Honeywell needed to transform as well: even if they helped many companies improve their digital presence and capabilities, Honeywell itself realized not long ago it, too, needed to begin to transform digitally. So, in 2016 the company began introducing new technologies like data-centric, internet-connected, offerings and devices.

What are the key trends in digital transformation

Why is it so important to know the trends in digital transformation? Because we are all living in the digital world. And the coronavirus pandemic just gave us the push we need in this direction. Companies’ adoption of digital technologies has sped up by three to seven years in just months, with companies accelerating efforts for fear of being outflanked by competitors, according to Laura Laberge, McKinsey director of capabilities for digital strategy. Indeed, what was once viewed as best-in-class speed for most business cases just a few years ago is now slower than average.

Add to that the ominous stat that only 11% of 1,140 business executives surveyed by McKinsey believe their current business models will be economically viable through 2023, and it’s easy to understand why 64% of those execs say their companies must build new digital businesses.

In this process of adapting to this new digital world, finding ways of being relevant and building new digital businesses, we all have to get a little creative and embrace the change that is in front of us. And to help us do just that, the Enterprisers Project wrote, in 8 digital transformation trends for 2020 article, about eight key digital transformation trends that business and IT leaders should be aware of. You can find them below, but if you want to have more details and advices about each of them, read the related article: 

  • Rapid adoption of digital operating models, including integrated cross-functional teams.
  • A shakeout as those that have invested in big data governance and analytics leapfrog their competitors.
  • Better use of AI and machine learning.
  • Continued merger and acquisition activity in the IT outsourcing industry.
  • Consultancies forming new digital partnerships.
  • Expanding public cloud adoption.
  • New digital transformation success metrics.
  • More attention to long-term value of digital initiatives.

So, are you ready for the future? Let’s explore the unknown and find new and amazing opportunities for humanity. Contact us and let’s start working together!