Digital transformation is important for big as well as small businesses. That message comes clear from almost all experts, keynote speakers and articles that takes about how businesses can keep competitive and relevant as the world is becoming more and more digital. However, what is not clear for many businesses and leaders is what digital transformation means. Is it just catchy to say? Do we just need to make a website or what does the digital transformation actually consist of?
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What is digital transformation?
The digital transformation looks different for every company, and it is hard to make a definition that can be used for everybody. However, in general, digital transformation is about integrating digitalisation in all parts of a business resulting in fundamentals changes to how businesses operate and how they deliver value to customers.
When a business fundamentally changes this also affects the whole culture within an organisation. The culture of a company has to be willing to follow this digital transformation process that the organisation wanting to change. This means that the culture will have to challenge status quo, experiment often and get comfortable with failure. Also, it might mean that you might say goodbye to some of the processes that used to be a big part of the company because new and better practices have to be implemented.
Why is digital transformation important?
There are many reasons why being digital is important, but the most known one is that you need to be digital to stay competitive.
Howard King said in an article for the Guardian that: "Businesses does not transform by choice because it is expensive and risky. Business goes through transformation because they have failed to evolve."
John Marcante, CIO of Vanguard, stated: "Just look at S&P 500. In 1958, U.S. corporations remained on that index for an average of 61 years, according to the American Enterprise Foundation. By 2011, it was 18 years. Today, companies are being replaced on the S&P approximately every two weeks. Technology has driven this shift, and companies that want to succeed must understand how to merge technology with strategy."
Even though if this is not enough to convince you, there are many reasons to consider it:
- Your competitors are doing it. According to a Forrester Research report, executives that nearly half of their revenue will be driven by digital in 2020.
- It will make you more profitable. In a study from Gartner 56% said that their digital improvements already have improved their profit.
- It will make you more efficient. Research shows, “Nine out of 10 IT decision-makers claim legacy systems are preventing them from harnessing the digital technologies they need to grow and become more efficient.”
- Your customers will thank you.
What does a digital transformation framework look like?
Digital transformation varies a lot depending on the organisation. The most common things to look into when working with a digital transformation is:
- Customer experience & Customer journey
- Operational Agility
- Culture and leadership
- Workforce enablement
- Digital technology integration
Digital transformation agency based in London, UK
Novicell has more than 21 years of experience in software development and digital marketing. We have our own in-house digital transformation agency with experienced and skilled digital transformation consultants. Our digital transformation consultants keep learning about digital transformation through courses and conferences to make sure to always be updated to the newest trends in the market.