Digital Transformation refers to a profound transformation of the businesses and organisational activities, processes, competencies and business models in order to fully leverage the changes and opportunities of a mix of the digital technologies and their increasing impact across the society in a more of strategic and prioritised way, keeping the present and future shifts in mind.
It is also cited as a cultural change, that requires organisations to continually challenge their status quo, experimenting on often basis and getting comfortable with failures.
The Digital Transformation Strategy
Any digital transformation strategy aims to create the capabilities of fully leveraging the possibilities and opportunities of new technologies and their impact faster, better and in a more innovate method in the future.
The digital transformation strategy involves the following set of steps-
Point of View: The very first step in creating a digital transformation strategy involves changing the company’s point of view. Any successful digital transformation needs to get the right people, which includes the stakeholders as well. The businesses need to have a map for every area of improvement with keeping in mind about the outcomes for everyone
Translating the Goals into Digital Processes: The businesses need to identify all the goals and the legacy processes that need to be converted to digital.
Ex: If a business has a goal to increase the sales, then with the help of marketing personalisation tools, businesses make sure that the users being shown the products that they have seen before or are likely to be interested. Personalised content helps in improving customer experiences, leading to higher rates of conversion
Research: To reach business goals, businesses must have a clear understanding of who their customers are. By the use of analytics, one can track where the users come from and how they travel across the website. In case they’ve made a purchase earlier, businesses must introduce personalised suggestions. Carrying out a deep understanding of how the customers are using digital, will help the companies to reach digital maturity
Keep Changing: The most critical part of any Digital Transformation strategy is being open up to changes. The businesses need to be ready and willing to transform their businesses as the needs of the customer changes. The businesses keep evolving by the frequent use of analytics for measuring their success.
Digital Transformation as per 2018 Vanson Bourne Study
- Significant increase in organisations focusing on IT and business collaborations (up by 45% v/s 2016) and skilling (up by 35% in 2016)
- 74% of the Indian businesses intend to invest in cybersecurity
- 67% are looking to spend under IoT-related technologies
- 61% of the businesses look towards AI technology
Benefits of Digital Transformation
Following are the benefits of Digital Transformation to any business and its workforce-
Transforms Customer Experience: The heart of any digital lies in the experience of their customers. As a result of this, the primary focus of digital transformation lies in using the cutting edge technology for improving the customer experience.
Driving Data-based Insights: A significant advantage of businesses going digital is that the businesses can use the user insights and optimise the business strategies and processes for better results. The use of data-driven insights can help to understand the customers and feeds in the business strategy enabling hyper-personalisation, relevancy as well as agility. This further involves the businesses to make use of both- structured data (such as customer information) and unstructured data (social media metrics) pulling data from different sides of the business to drive the transformation journey.
Increases Agility and Innovation: For any business, agility is defined as the ability to continuously improve and develop quickly, especially in terms of the digital processes. Even the top companies must be ready to adapt and innovate, as there will always be a new competition, new tools and the latest trends. With such evolution, there would be a higher demand from the customer side and businesses are required to be ready for it.
Consolidating Processes and Operations: Besides money, the most significant benefit, technology has given to the businesses is that it has made it easier to connect with other people. When the companies go digital, they not only bring in more workforce together but also an entire architecture. This can include- social media, analytics and project management interfaces. The consolidation of the company’s processes and operations enables the businesses to connect with their target audience and satisfy their needs.
Stories of Successful Digital Transformation
Porsche has always placed its customers at the heart of their strategies. What drives the digital strategy for Porsche is its customer experience. Porsche has heavily invested in understanding the Porsche driver. All of the customer data is derived into a central CRM data centre and allotted a unique ID. The customer interactions at every point are documented. Due to this unique ID, Porsche has known its customer’s expectations for each touchpoint. This data further allows real-time segmentation and predictive intelligence, enabling them to maximise their campaign success.
The Apple computers are known for their long lifespan and excellent quality of the brand. To differentiate from other manufacturers, Apple produces the hardware and software components of their devices, to make a perfectly engineered combination of the two to work together. This, in turn, makes the machines more reliable and less prone to productivity-sapping bugs and glitches. This also makes the user experience consistent across the full range of devices.
Apple devices also come with the best security mechanism platform ranging from system level security such as Touch ID to enforcing two-factor authentication to AES-256 bit hardware encryption for data at rest and a VPN over the transport layer when the data is moving. Whenever an Apple device is enrolled in mobile device management or MDM solution, the device is designed to secure relevant company data while protecting end-user privacy. The MDM solution can only see corporate data and apps, and none of the personal data without any need for separate workspace.
One of the significant advantages of iOS is that the updates are quick, easy and user-centric. Nearly 59% of the devices under iOS run on the latest version of the operating systems just after six weeks of their initial releases.
General Electrics is one of those companies that has gone several iterations since its introduction. One of the most successful iterations came in when the company introduced the 3D printing in their production methods. In the year 2015, the company started using additives in manufacturing for creating fuel nozzles for their passenger jet and engines, and this way became the market leader, as they were the first ones to do so.
The 3D printed nozzles proved to be five times stronger than the traditionally manufactured counterparts, and these could withstand temperatures up to 1600C. Nearly 8000 orders, valued at $80 bn were placed shortly after the launch of the product.
Digital Transformation in Indian Markets
The Digital Transformation in India is expected to grow by $710.0 billion by 2024, with a CAGR of 74.7% during the forecasted period. This growth in the market can be attributed to the increase in adoption of Internet of Things and surging manufacturing industry in India.
Based on offering, the Indian market can be classified as solutions and services. Among these, the services are expected to be the fastest growing category in the market. The service sector is on the rise due to digital initiatives by the Indian Government, which attract the highest FDI inflows as well as the availability of highly-skilled and low-cost of the workforce.
Based on solution, the Indian market can be classified into- cloud, IoT, Big Data, Artificial Intelligence, mobility and social media and others include- blockchain, machine learning, chatbots, augmented and virtual reality and eSignature. Out of these, AI is expected to be the fastest growing category in the forecasted period.
The increased adoption of the Internet of Things or IoT is a crucial factor for the growth of Indian digital transformation market. IoT helps in building smart products through new functionalities, reliability, more excellent product capabilities and product utilisation. The Indian companies are considering IoT as a strategic tool for business scalability and helping the businesses generate new and innovated user experiences.
The author is a marketing team member & content writer at ESDS Software Solution.If you have an interesting story to share, please send it to [email protected]