It’s obvious that the demand for digital technologies for business is growing every day. Clients have become so demanding that they expect that any of their wishes – even unusual ones – will be fulfilled as accurately as possible and in an extremely short time.
Businesses that fail to adapt to the demands of the digital consumer are likely to perish. They will simply be destroyed by new high-tech competitors.
In this article, we’ll share five signs showing that your company needs a digital transformation if you don’t want to be devoured by market sharks.
Let’s start with the basics: what is digital transformation?
Many people think that digital transformation is just the introduction of trending technologies: websites stuffed with modern features, chatbots, applications, as well as the use of all possible social media.
However, this is not the case. According to the Grid Dynamics project, digital transformation is not only an investment in new technologies (artificial intelligence, blockchain, data analysis, and the Internet of Things) but also a deep transformation of products and services, organization structure, development strategy, workflow with clients and corporate culture. In other words, it is a revolutionary transformation of the organizational model.
When is transformation a must?
#1. The company has been losing market positions to its competitors for a long time
If you are doing everything that you have done before, but the company is consistently losing market position and customers, then know that your audience expects more from you. The only way out of the situation can be a radical digital transformation.
#2. The industry is changing its structure and business model
A simple example is Uber. Before its arrival, the taxi drivers couldn’t even imagine that soon they would have to reckon with the new conditions of the road game. Digital services like these make the companies around work in a completely different way.
If an industry’s business model changes, the company needs to change with it.
#3. New technological solutions appear on the market
New technologies help to make work more efficient both within the team and in relationships with clients. 3G technology is an example: it radically changed the market and gave customers freedom thanks to the speed of mobile Internet. This transformed the audience itself, its habits, and methods of communication.
Today, technology 5 is on the doorstep, is it worth saying that you need to start transformation right now?
Benefits of digital transformation
- Evidence-based solutions
Most organizations today have huge amounts of data available. They can be turned into valuable business development ideas and used to make smarter and more responsive decisions. The data-driven approach gives an understanding of what goods and services will be in demand, even before the consumer trend manifests itself.
- Information security
Strict control over the process of providing access to data, compliance with the safety requirements, as well as ensuring protection against hacker attacks is a necessity today, and there is nothing to add here.
- Productivity increase
Digital technology enables employees to more efficiently complete key tasks. With their help, key departments of the company can automate their workflows.
- Developing good customer relationships
Digital transformation can help improve brand image through more active customer engagement at different stages. This, in turn, will lead to better business results.
- Strengthening partnerships
Most companies are interdependent. To attract consumers to their products, they interact with many partners. Digital technologies make this interaction more transparent, accurate, and faster.
The value of digital transformation for business can hardly be overestimated. Investment in digital transformation across industries is huge.
Avoiding digital transformation is like denying and not using electricity. And the sooner companies begin to transform, the faster they will receive tangible benefits.