What Is Digital Transformation and Why Should It Be a Top Priority for Every Company?
Digital transformation is an essential part of any company’s future. That and digitalization will inevitably happen, but they will not be adopted without investment.
Digital transformation refers to a broad change that occurs in an organization, society or industry as a result of the introduction and utilization of digital technologies and innovations.
While the digital transformation has initially affected only a small part of companies, today it affects almost every company and employee, regardless of the industry.
And the change does not only apply to digital devices, but also areas such as business models, processes, customer experience, employee operations and social and cultural structures.
Digital change challenges every single organization to think about its future and consider its future strategies. Because of this, we advise attempting to accept the inevitable rather than trying to avoid it.
Digitalization Turns Analog Into Digital
Digitalization refers to the process of converting traditional physical functions, services or information into digital form. Digitalization affects almost all aspects of life, such as business, administration, education, healthcare, communication and consumer services.
It means, for example, automating manual processes and replacing traditional paper documents with electronic ones. It can also mean storing data in cloud services, utilizing smart devices and the Internet of Things (IoT), using artificial intelligence (AI) and machine learning, developing digital services and applications, and much more.
The aim of digitalization is to improve efficiency, accessibility, speed and quality of services and to offer new opportunities for innovation and business. At the same time, it creates challenges, such as ensuring data security and privacy protection, as well as the need for proper technological know-how and training.
Digital Change Is the Result of Digitalization
Digital transformation is often confused with the concept of digitalization. Whereas digitalization only applies to one process, digital transformation refers to the more general use of digital technology to change internal processes, culture and user experience.
Digital transformation is therefore the result of many digitalization changes.
Especially in business, digital transformation is a controversial issue. Digital transformation is a conscious change in a company’s business. It affects every department and employee. In order for the benefits of digitalization to be fully realized, it is often necessary to change the organization’s operating methods and culture.
The digital transformation has been going on for a long time, but it really only started during the pandemic in 2020 – or you could even say as a result. McKinsey’s survey from 202 showed that when the pandemic shook the world, the need for bringing the companies’ own processes and systems into the modern digital age caught the eyes of business leaders.
At the same time, the pandemic started a huge avalanche of change, when digitalization became an increasingly widespread phenomenon, as more and more things experienced digitalization. Digitalization is partly inevitable, but a broader internal digital transformation of the company does not arise by itself.
Digital Transformation Strategy
As stated, digital transformation is not created by just snapping fingers. A comprehensive strategy for the entire company’s operations is needed. It keeps the change on the right track.
At least these five areas should be considered in the strategy:
1. Change in Business Strategy
Today, every company is a media and technology company. Similarly, it can be stated that every CEO is also a technology leader. Digital transformation puts technology at the heart of business strategy.
How could my company make the best use of technology? What kind of digital changes have the competitors brought about? What are the trends in my field right now? What is already working for us and where is there the most room for improvement?
Among other things, every decision-maker should find an answer to these questions when business and technology are being combined.
The chosen direction can change the direction of the company. When the business strategy is flavored with technology, a cohesive system is produced that lowers costs and inefficiency and makes it easier to accomplish future objectives.
2. Reorganization of Business Operations
What do my customers and employees need most, and how can digital processes help them?
Changing business processes and enabling new experiments are decisive for success.
Starting with these questions can create better processes at every level, whether it’s improving customer service with better data and analytics, moving critical services to the cloud, or strengthening resilience between engineering, manufacturing and supply chain functions.
3. Implementation of New Practices
So that the digital transformation does not remain only at the level of plans, the changes must also be implemented. Most companies often underestimate in their decisions how the technology and investments will eventually be implemented. A good plan is half the food, but implementation still requires its own investment and time.
A big part of implementation is how well the company embraces the change. Good preparation ensures that this goes as smoothly as possible.
4. A Flexible Technological Core for Sustainable Change
It is important not to get stuck on just one technology. When you remain agile and flexible, you are better able to adapt new innovations as needed and create a technological ecosystem as seamless as possible. This guarantees that the change is sustainable and takes into account the needs of both the company and its customers.
5. Personal Change Management
Digital transformation affects all areas of business. To be successful, it requires full support from people in management positions and a culture that supports the change.
Technology brings new challenges to employees, but it can also solve many of them. To create lasting change, companies often need to build new skills as employees work in new ways.
The Benefits of Digital Transformation
Change doesn’t come for free. After the previous listing, it is quite understandable to start questioning the usefulness of the transformation in relation to the hours used.
But digital transformation has its own significant benefits. Here are a few of them:
Customer Satisfaction
Customers want personalized services that meet their individual needs. On the other hand, they want things to happen automatically, and they don’t want to always have to deal with people. One of the clearest advantages of digitalization in business is that it is possible to implement digital tools and strategies that lead directly to increased customer satisfaction.
More Information for Decision Making
One of the most significant benefits of digital transformation is the possibility to collect and analyze data better than ever before. Digital transformation enables robust data collection, centralized data storage, and the creation of tools to analyze and transform data into information that promotes business decision-making.
Efficiency
Digital transformation improves efficiency. Say goodbye to cumbersome manual processes and automate, connect and streamline different processes as well as the workflow between different devices. Digital business processes save time and reduce frustration, as digital operations are synonymous with efficiency in business.
Innovation and New Business Opportunities
Digital change opens up new innovation opportunities.Companies can leverage digital technologies to develop new products, services, and even create entirely new business models. This developmental approach not only enhances profitability but also strengthens income channels.
Companies that manage to take advantage of digital opportunities are usually more competitive in the market. Digital transformation can help to stand out from competitors and offer better solutions to customers.
Minimizing Errors and Risks
The undeniable advantage of digitalization is that digital processes prevent errors, as time-consuming manual work is reduced and human inefficiency is replaced by technological efficiency. Digital processes are inherently smoother and less risky than any process involving error-prone humans.
At the same time, digital solutions can help companies manage risks better, for example in terms of information security and data protection. Data can be protected and backed up digitally.
Even More Opportunities in the Future
The ultimate benefit of digital transformation is the most fundamental. Digital transformation creates a platform for all subsequent business growth.
Without investing in digital business transformation, companies run the risk of quickly becoming obsolete. Digital transformation is not an optional phenomenon. In order to survive the digital tornado shaking the world, companies must get to work. Many large companies have stumbled on digital transformation. No other company wants to share the same faith.
A Step Towards Digital Transformation With the Help of Centralized Data Management
We have already brought up issues such as automation, efficiency, streamlining processes, etc. many times. We have also brought up that every company is a media company in its own way.
What are we trying to say? The number of digital files and materials is constantly increasing, no matter what company or industry it is. Therefore, one big step for companies is to digitalize the management of files and materials.
We feel that when the management of digital material is flexible, smooth and, above all, reasonable, companies are able to save time and energy and direct them to something more useful.
Exactly what digital transformation is all about.
The digital asset management platform that we developed, Media Pocket, has already served as a significant element in the digital transformation of several companies. With it, companies have been able to centralize all their media management, from handling the first drafts to archiving and distribution.
When all the files are in one place and available to all parties involved, the processes go much smoother. Digitalization at its best!
Every company is a media company. That’s why Media Pocket adapts to the needs of each company.
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