Through advanced analytics, you can base your choices on real-world data. Digital transformation also means creating a supportive company culture in which it’s OK to fail. Rapid iteration, throwing out what doesn’t work and improving upon what does becomes the company’s backbone. The following are some examples of how digital transformation leads to better outcomes across industries and other entities. Remember that the rest of the business tends to have a problem with big IT concepts. Take the example of the phrase ‘cloud computing’, which used to be met with nonplussed expressions from non-IT execs 10-plus years ago.

what digital transformation means for business

This is when the idea of digital transformation began to take shape. With new technologies, new things — and new ways of doing them — were suddenly possible. Cloud computing technology plays a valuable role in providing this type of agility and can go a long way toward addressing some of the common challenges of digital transformation―including infrastructure integration and cost factors. The cloud can deliver the speed and flexibility you need to accelerate your transformation and outpace the competition, while staying within scope and budget.

Why is digital transformation important?

Don’t plan a marathon before you’ve even made it around the first block. The beauty of digital transformation is that it does not have to happen all at once. Like building blocks, smart technologies are designed to evolve, scale, and integrate. More than two-thirds of companies say they are competing mostly on customer experience. Digital transformation also changes the landscape for customer communication.

  • For example, by implementing a digitalized, cloud-based supply chain management system, businesses can lower downtime, streamline production, and increase profitability.
  • Learn from their input and ideas, openly address their concerns, and give them time to change.
  • Define the metrics that will determine whether, and how well, the identified objectives and goals were achieved, using those compared against costs to determine ROI at various points along the organization’s transformation journey.
  • This pillar is different from the others in its focus on digital tools to interact and sell to customers.
  • Traditionally, CIOs are in charge of a company’s information technology systems and processes.

It’s important to optimize and secure data everywhere it flows, while equipping teams with easy-to-use tools to get their jobs done. As you evaluate the customer journey as part of your digital transformation, consider how you can give your clients greater autonomy over their own data — using data privacy as a business differentiator. Consumers are increasingly aware of, and concerned about, how their data is collected and used. Show them that you respect their data by putting strong privacy practices in place and giving them the opportunity to change their minds at any time.

Great Examples of Digital Transformation

Book a meeting with one of our team members and we will help you plan out your next steps. You can also use our calculator tool to receive a rough estimate on your project. Digital transformation projects can be hard to quantify in terms of ROI. But with the right metrics in place, you can prove their effectiveness. Digital transformation has become a global business movement, and you must stay tuned to the universal paradigm to thrive in the digital economy eventually.

Avon also started to develop a stronger e-commerce platform, such as via mobile and web. Sales through e-commerce channels grew by six times in the first three weeks following lockdown. The company also started to produce digital brochures that could be updated far more easily and shared through social channels. Beauty company Avon International has used a direct-selling model for 130 years.

Focus on data privacy and compliance.

As a result, companies increasingly rely on cloud services, particularly when cutting costs and improving accessibility. Digital transformation requires skilled employees who can use digital technologies to drive innovation and change. Therefore, businesses need to invest in their employees’ training and development to build the necessary skills and capabilities.

what digital transformation means for business

IT leaders find themselves working in cross-functional teams more than ever. Digital transformation initiatives often reshape workgroups, job titles, and longtime business processes. When people fear their value and perhaps their jobs are at risk, IT leaders will feel the pushback.

Scaling breakthrough innovation

Employers adopted or expanded technologies that let employees work from home. Making call centers and in-store service desks run more efficiently with digital technology is of course great. But real transformation comes when you look at all available technologies and consider how adapting your business to them can give customers a better experience.

what digital transformation means for business