Are you new to the term “digital transformation”? It refers to the integration of digital technology into areas of a business to change how it operates and delivers customer value. It is also referred to cultural change that requires organizations to challenge their status quo on a continuous basis, experiment and accept failure.
Digital transformation has the ability to become a part of different technologies but right now, it is penetrating in the Internet of Things, cloud computing, Big Data and Artificial Intelligence.
Digital transformation is not just limited to technology. It is also about changing business processes and corporate culture. It is a way large and established companies compete with their digital rivals. It is certainly a commonly used phrase in the IT industry. However, people have different definitions of this terminology. One thing everyone agrees to is the fact that it involves significant changes to the business culture.
Importance of Digital Transformation
According to IDC, the global spending on digital transformation technologies (which include hardware, software, and services) has reached $1.3 trillion. It is expected that by 2021, this figure will double up and it may even surpass $2.1 trillion.
The companies that are doing digital transformations expect to generate more revenue from their business operations. They are able to empower their employees and reduce business costs. Apart from reducing costs, it can also refine the operations of an organization. It is clear that there is no better time for a business to embark on its journey of transformation than today.
Digital Transformation Examples
Digital Transformation Examples
Want some real-time examples of digital transformation? Read further.
McDermott is working on a project to create a digital twin. It is going to be a computer model of oil and gas platform. The firm will experience a 15% boost in its operational revenue if they use it in their key areas such as predictive maintenance. According to Gartner, by 2021, half of the industrial firms will start using digital twins.
Another example is UPS. This logistics firm is planning on placing analytics and insight at the heart of its business operations. They will use real-time data, AI, and advanced analytics for helping their employees make better decisions. They have launched a chatbot that uses AI to help the customers find tracking information and rates.
How Can I Get Started On Digital Transformation?
How Can I Get Started On Digital Transformation
If you are a business owner, it is time you start thinking about digital transformation too. The problem is, a lot of companies believe that their competitors are far more ahead in the game than they are. Because of that, they hesitate to get started on digital transformation.
Transformation is hard and it is time taking but it is possible for a business to create its own digital transformation strategy too. Experts believe that it is strategy not technology that drives transformation. To successfully create new digital experiences, you will need diverse skillsets and collaborative culture where people can easily share their ideas and expertise. You will also need people who are open-minded about taking risks.