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Digital Transformation

How To Build A Digital Transformation Strategy In 2022?

Digital technology is emerging and extending its wings by leaps and bounds day by day and with this emergence, it has become important for enterprises to stay on top of these digital trends to gain competitive advantages. Organizations that understand the significance of these digital trends are regularly experimenting with innovative digital solutions to bring innovation and explore new opportunities for their businesses.

Digital technology can completely transform the way you carry out your business operations. In this article, you will explore effective digital transformation strategies that will keep your organization on top of digital trends.

What is Digital Transformation?

Digital transformation is the process of implementing digital technologies for remodeling the workflow of the organization for the sake of enhanced productivity and efficiency utilizing the digital economy. In most cases, this transformation involves the incorporation of AI, IoT, migration to the cloud, the introduction of big data, etc. This switching is as essential as a technological revolution in the corporate world. Organizations welcome the changes to the ways and processes using which they carry out their day-to-day operations and functions. By adopting technological transformation everything from the business model, strategies, internal processes, and customer experiences go through relevant adjustments. As a result of these adjustments, business becomes more efficient, productive, and competitive.

Moreover, COVID-19 has made it essential for organizations to be adaptive to the digital revolutions and changes as with a lack of technology, it is not possible to survive in the market. Pandemic is though an unpredictable condition but this has made technology a necessity for the whole world. The business pioneers in almost all the business categories understand the importance of digital technology and the constant change required by it. Therefore they are setting new trends and encouraging all businesses to adopt new changes for reaching new heights.

Why Your Business Should Get Transformed into Digital Space?

There are a large number of reasons why businesses may require digital technology trends to be utilized and thus stay ahead of the competition. Let’s understand the most common reasons to try digital technological trends.

Improved Data Aggregation

Unorganized data is not of any use. It is only considered valuable if it is organized properly. It is utilized for processing and analysis in an organized form which further helps in providing better insights for effective decision-making for the business. An effective digital space when used by organizations leads to well-aggregated data that also enhance sensitive data confidentiality and prevents cyberstalking.

Better Allocation of Resources

Random allocation of resources is always dangerous for any business as it may impose risk to the security of business data. If your business resources are collected in one place the allocation process becomes simplified and quicker. This also helps in simplification of the management process while also ensuring personal data safety. The innovation in the digital field enables organizations to integrate programs, databases, and apps for better alignment of operations.

Good Client Understanding

With an effective and detailed analysis of the data, you can have better knowledge and understanding of what your client’s desires and expectations are. Based on the activities of the customers you can reshape your marketing strategies accordingly to achieve your higher business objectives. Framing strategies according to the needs of customers is the key to attracting more clients as well as profit.

Client-Oriented Approach

Digital technology helps organizations Upgrade the level of customer experience. Since customer experience is one of the key factors that can help businesses win over their competitors, Therefore a customer authentic approach is always a priority for every organization. Providing good customer service has become possible due to digital innovations, such as improved communication channels, hassle-free web performance, and quick response systems. With such digital innovations, organizations can win the hearts of their clients easily.

Convenient Team Work

Innovative technology supports organizations with effective instruments and tools that enable teams to work collaboratively to achieve organizational goals. A technically sound and modern organization provides effective communication channels to their team using which working on projects collaboratively becomes quite easy. Besides this, digital solutions can offer regular training and education to the employees to stay tuned with the latest trend and enhance productivity.

More Profit

As discussed, innovative technology incorporation will help enhance efficiency and productivity which in turn will improve the sales goals of the business. This is possible due to better allocation of resources, Workflow optimization, And go or entered marketing strategy.

Flexibility

The complete credit for achieving flexibility for an organization goes to the incorporation of digital technology which aids in changing the strategy according to the requirements of the business and clients. This flexibility further helps in releasing products more quickly and hence enhances productivity, client satisfaction, and ultimately business revenue.

Enhanced Capacity

With the help of innovative digital solutions, an organization can be more scalable regarding its product development as the team gets support from the modernized workflow. More power processes will ultimately enhance the capacity of business to a great extent.

How to Build A Digital Technology Strategy as Per 2022 Trends?

The main aim of incorporating digital technology into your organization is to give an exceptional fight to your competitors and stay ahead of them in the market. However, a digital transformation is not going to be productive as long as you are not aware of the latest digital technological trends. So it is important that 1st you make yourself familiar with all the digital trends in 2022 and then implement them as per their scope in your business. Let’s discuss a few certain trends of 2022.

Customer Data Platforms (CDPs)

In this era of digital advancement, data from the customer is being collected everywhere. Whether they are purchasing one of your products or services or on the Internet interacting with your organization for any purpose, all sorts of conversations and their data are being recorded. Both large and small-scale enterprises are working on this strategy.

The only difference that lies is in the usage of this collected data. For organizations having limited marketing options this would not be a problem at all but for large-scale organizations with a wide range of products to offer and a large customer base collecting data from such a huge audience becomes difficult. This is the case where customer data platforms or CDPs perform a great role.

A CDP is a single customer data source that organizations use to gather customer data and then frame targeted marketing campaigns for their clients. You may think of it as a technological solution made only for the marketing wing but this is a wonderful tool for finance and IT wings, as well as this, can facilitate quick decision-making regarding products, services, and investments.

Focus on Cyber security

A few years ago, the transformation of organizations into digital space started as a product development initiative. This involved the organization’s fast go-to-market plan and they focused more on initiatives such as DevOps. In this strategy initiative, one important thing that was left behind was security. But with increased cyber attacks in recent years, organizations became alert regarding their online data security. Most large-scale enterprises have now hired digital advisory services or Digital Transformation Consultants which involve cyber security consultation offered by chief information security officers.

Moreover, the COVID-19 pandemic has realized the requirement of high cyber security efforts. Your organization’s security wing must ensure that its cyber security practices don’t affect the pace of your digital transformation. Also, the sole aim of the organization should not be to speed up the process but it should be to speed up the process safely without risking the organizational data.

Multi-cloud Architecture

The distribution of workload and software within the organization by utilizing one or two public or private clouds is referred to as a multi-cloud environment. The adoption of this architecture by the organizations is boosted more during the COVID-19 pandemic. This is because digital solutions eliminated the risks of business continuity. Also during this pandemic, organizations desired to manage their work more easily by following all safety measures which gave rise to remote work.

Multi-cloud system is adopted to help aid in data residency and resilience requirements, disaster recovery, etc. However, the only complexity involved in this is the management of such a multi-cloud infrastructure. To manage such an environment organizations are required to evolve innovative automation and cloud management solutions so that their agility requirements can be met.

Accessibility of AI to Everyone

The transformation of the business into a digitally sound space cannot be imagined without the democratization of Artificial Intelligence (AI). This is one of the major digital transformation trends of 2022. It is a process of making AI accessible and reachable to every organization or possibly every employee of the organization. This is possible with the incorporation of various tools based on AI. These tools facilitate making decisions, forecasting, improving, learning, and spotting and recognizing trends.

In this era, every single organization and even startup is trying to include AI in their business processes and systems. Some organizations have adequate resources to make this integration happen, and some organizations may use AI as a service provider just like companies such as Microsoft, Google, and AWS are doing.

Besides being a difficult solution to implement, AI is a costlier solution for many businesses which they need to address. Even after this, the healthcare industry is an excellent instance of the implementation of AI. This industry has been transformed by successful AI integration.

Digital Payments and Contactless Solutions

The year 2022 has given rise to contactless dining, the rise of no-touch solutions, and NFC payments. Cafes and restaurants are deploying contactless solutions to deliver orders to customers. These solutions essentially evolve as a result of the post-pandemic consumer behavior shift. It does not only involve delivering food to customers’ places but also in-seat ordering through contactless solutions.

In-seat ordering refers to an ordering system in which customers need not stay in line for as long as they can keep sitting on their seats and make payments from their smartphones via apps or QR codes. QR codes enable customers to explore menus of the restaurants and pay easily without the need for physical interference.

To incorporate such contactless solutions into the organization, you need a robust infrastructure established so that the transformation process can be convenient, productive, and quicker.

Automation

Organizations can achieve a quicker transformation to the digital space by incorporating integrated automation into the processes. Digital transformation is the result of automation. COVID-19 is one of the key reasons that have encouraged organizations to adopt automation for their business processes. To let business operations run smoothly, organizations are required to automate their processes.

Automation is another important trend for 2022 according to Gartner. It also explains the process by which various technologies such as automation, RPA, machine learning, etc. are bound together.

For increased scalability businesses can also adopt automation systems based on cloud technology.

5G

5G is going to be another major trend in 2022. The transformation of digital space will catch high pace with the adoption of 5G technology. There are a large number of benefits offered by 5G for telecom providers such as the increased capacity of delivery of services, new content, etc. Also, this technology will boost the speed of service delivery by the telecom providers.

5G technology can help organizations in transforming their operations by improving the ways of service delivery to the end-users. Some of the benefits of this will include low latency, fast speed, and higher density as compared to the 4G network.

To enjoy the full advantages of the 5G network, organizations are required to invest adequate amounts in establishing their network infrastructure.

Smart Data Analytics

Data are the key assets for any business organization but only if they are processed, organized, and well maintained. Smart data analytics are the tools that can help you extract valuable and processed information from the raw data. The processed form of data enables organizations to improve their decision-making power and thus enhance the productivity of the organization.

For accelerating the digitization process of any organization, data and analytics are the key components. The variety of data analytics can lead to a variety of respective implications throughout multiple departments.

Data analytics are useful for different departments within an organization to explore solutions to typical problems. These analytics of the data enable organizations to predict customer behavior, sales pipeline optimization, supply chain process optimization, and more.

Different Stages of Digital Transformation

The different stages involved in the Digital Transformation Managed Services include:

  • Usual: Traditional approach to the processes of working.
  • Present: At a given moment, the state as it is.
  • Formalized: The stage at which you begin introducing alterations to your routine workflow and business models.
  • Strategical: The strategy as soon as the guiding policy is framed.
  • Combined: Organization has an educated team as well as a trustworthy action plan in the process of digital transformation.
  • Innovative and Adaptive: Implementation of chosen strategy actively, with scope for future changes.

Measuring ROI from Digital Incorporation

To make sure that your digital transformation has been successful, you need adequate tools that can show you the results clearly that you have achieved. Additionally, this will help you to assess your accomplishments, strengths, and weaknesses and then make adjustments in your business strategy if needed in terms of business processes as well as client service.

There is a special set of transparent KPIs that can be utilized to measure the achievements. This set of KPIs provides clear ideas to both parties about the effectiveness of their digitally opted strategies. First of all, a comprehensive approach should be utilized to create an overview of various investments that involve digital transformation. You should also be capable of taking risks to implement the things which are necessary to be changed for your business. Once this is done, effective techniques need to be utilized to assess your transformation process. The various metrics that you can use include:

Business Outcomes: assess the impact of strategies through growth in revenue, lifetime value of the customer, marketing time, etc., the impact of operations via improvement in productivity, scale, efficiency in operations, etc., and cost impact.

Measurement Standards: Ideally, you set a system of measurement standards beforehand as this will help in measuring the success.

Create Metric Hierarchy: For a better idea, a hierarchy of metrics and sub-metrics can be created. This will also help you implement changes if required.

Introduction of Results to Business: Parameters such as an increase in profit, speed of release of products, improvement in workflow efficiency, and cost-effectiveness of the production are ideal to be used to analyze the strategic effect on the business

Conclusion

Before you incorporate a digital strategy into your business processes, you must understand that the process of transformation followed by Digital Transformation Companies may get much different than the program strategy and application plan. To avoid any deviations and for achieving relevant and effective outcomes for your business, you must first set bold milestones and goals along with enhancing the mindsets of the people involved in its usage, especially your frontline incubation and strategic resources. By staying on trends you will be able to make the best decisions for your organization.

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Digital Transformation

What Are The Benefits Of Digital Transformation For Businesses?

Gone are the days when organizations had to depend on loads of paperwork that could be handled from a specific physical space. In this volatile business era adapting to the changes to your organizational processes becomes important to cope with the competition. If in this competitive environment you are still relying on traditional approaches to carrying out business operations, it means you are pulling your business behind your competitors in terms of speed, accuracy, management, efficiency, and output. Moreover, if so, you might have experienced the drawbacks of traditional business methods during the COVID-19 pandemic. Businesses lacking digitization had to close their operations completely during this period and thus had to bear heavy losses.

Well, most organizations and businesses have now understood the need for incorporation of digital technology as the danger of COVID-19 is still there across the world and every business owner or startup wants its business to stay in continuity no matter whatever may be the condition. This is possible only with the help of digital transformation technologies.

Digital transformation is not a strange term anymore as, according to a recent survey, more than 70% of organizations are aware of the benefits of digital transformation and have framed a well-planned strategy for it. Before we study its benefits, let’s understand a bit about digital transformation.

What is Digital Transformation?

Integration of digital technology in all areas of business is termed digital transformation. As a result of this integration, the fundamental method of business operations gets changed to a more superior and digitized way. Organizations pertaining to different industries are nowadays utilizing a large number of advantages of this transformation as it ensures that businesses have modernized processes, efficiency in workflow, strengthened security, and enhanced profitability.

Around 90% of the organizations are utilizing cloud technology to migrate data to it. Most of this migrated data is being utilized to replicate the existing business services in a digital form. But actually, digital transformation is beyond this replication as it can be transformative throughout the organization. It is creating a framework of technology to utilize digitized data and services into insights that are actionable in nature. And this framework has the capability to transform every aspect of your organization.

Digital technology transformation needs the usage of tools and technologies based on the internet to carry out various organizational processes to meet the needs of its stakeholders, customers, as well as business objectives. This is a sort of business transformation enabled by the incorporation of technology.

Why is Digital Transformation Essential?

Of course, being a business owner or startup, you want to stay ahead of all the digital trends in the industry so that your business can have complete competitive advantages. This transformation can amazingly change the way of operations of your organization. Processes, systems, culture, and workflow are part of all these operations. Each level and part of the organization is affected positively by bringing all the data together for more efficient decision-making and strategy implementation.

Digital technology helps incorporate artificial intelligence, machine learning, advanced processing, and workflow automation which help organizations effectively meet the demands of customers along with more business objectives.

Benefits of Digital Transformation for Businesses

There are a large number of benefits for the businesses ranging from effective decision making, workflow management, and automation of various processes to increase sales. Let’s discuss the main advantages offered by this transformation to businesses through Digital Transformation Consultants.

Improved Data Collection and Utilization

Most businesses nowadays involve the collection of huge amounts of customer data. The collection of customer data is one side, but the real advantage of this data for businesses is its analysis which can help move the business ahead. Digital technology transformation makes a system for collecting the correct data and utilizing it completely for higher levels of business intelligence.

With this, a way is created using which this raw data can be processed and translated by various functional units into deep insights throughout various touchpoints. A good analysis of collected data helps in producing a single view of production, operations, customer journey, finance, and opportunities.

It is important to assess how the customer data is being collected, analyzed, stored, and used as a part of this business process. When you are considering your technology support in the organization for this, you will surely want that such sensitive customer data traveling in and out of your customer relationship management software is secured and encrypted with a solid layer of data encryption technology.

As you assess the customer journey as your digital transformation part. You can consider exploring different options which enable your organization to enhance data privacy to provide better autonomy over their data. Customers are often concerned about how their data is being utilized. By framing strong privacy policies and their implementation, you can assure them that you respect their privacy and protect their personal data from being misused in any way. This assurance gives customers peace of mind and an option to change their minds over data privacy matters.

Great Resource Management

With the help of data transformation – Digital Transformation Managed Services, various business resources and information are consolidated into a single package of business tools. It also eliminates vendor overlapping by consolidating all the organizational resources such as databases and software. Transformation of business to digital space helps in the integration of applications, software, and database into a centralized repository that enhances business intelligence.

It is important to note that digital transformation is not a functional unit or department; instead, it is a process of digitization of business that includes every area of the business and leads to efficiency and innovation in processes across its various units. Ranging from marketing and sales to finance and HR, every field of an organization possesses sensitive data. Hence it becomes essential to secure and optimize that data wherever it flows while keeping the working process easier for the team so that finishing a particular job can not be too complex and time-consuming.

Better Customer Insights

Customer data collected by the organizations play an important role in providing customer insights which in turn helps understand the customers and their requirements. By having a clear understanding of customers and their needs, a business can frame effective strategies that are more customer-focused. Both personal data are also known as structured data, and social media metrics are also known as unstructured data. When combined together can offer effective insights to help in the growth of the business.

With good data insights, businesses can get more agile, personalized, and relevant information that is further utilized in framing business strategies.

Enhanced Customer Experience

A sound digital transformation strategy can not only enhance the efficiencies of your business processes but also offer exceptional experiences to your customers. This includes communication via emails or user portals, ease of accessibility to the users, digital products, and cadence with the help of which businesses expand their reach towards new prospects.

For digital experiences, customers usually have great expectations and therefore providing an exceptional customer experience is a new area for every business which has a great deal of competition. With customers having a lot of choices related to low prices, quick delivery options, etc., most Digital Transformation Companies nowadays are competing with one another on the basis of customer experience only.

According to a survey conducted by Accenture, customer experience is the new driver of continuous business growth, and an increase in customer experience with even a single point can result in millions of dollars in annual growth.

One of the major ways to stay ahead of the competition on the ground of customer experience is to assure your audience that you value the privacy of their data. You can offer control of the processes involved in the collection and usage of data to the users and enable them to make decisions regarding their data.

Improved Collaboration with Digital Culture

Digital transformation brings an innovative and digital culture to the working environment of the organization if adequate types of tools are offered to the workforce. Such tools offer a great way to collaborate for the betterment of organizational processes. Digitally equipped tools help organizations to move forward in an efficient way. For sustainability, it is crucial to promote a digital culture within the organization in which the team can have effective communication regarding the business projects. It also involves adequate training and learning of the team for upscaling the usability of the digitally equipped tools.

Enhanced Profitability

Organizations that adopt transformation to digital space experience more productivity, efficiency, and profitability. According to the reports of a survey from SAP Center for Business Insights and Oxford Economics:

  • 85% of the digitally transformed organizations report an increase in market share.
  • 80% of the organizations that implemented digital transformation report that there is an increase in their profits.
  • 23% higher revenue is reported than the competitors by the leaders as they implemented this transformation.

Improved Agility

Digital Transformation enhances the agility of organizations. Utilizing the various advancements in the software world, businesses can have increased agility and adopt continuous improvement strategies and improve their speed of reaching the market. This improvement in agility ultimately helps in quicker innovation along with clearing the pathway of improvement.

Increased Productivity

Appropriate technology tools that work collectively can help organizations streamline the workflow and thus increase productivity. As data transformation involves automation of almost all manual work and integration of data across the organization, which ultimately encourages employees or workforce to work in a more efficient way, this efficiency leads to enhanced productivity.

More Innovation

With the digital incorporation, organizations are now capable of exploring and taking advantage of new and innovative opportunities that otherwise were not possible. Companies can develop innovative products and services that were possible only in dreams earlier. For instance, gym equipment meant for personal use is now digitized in such a way that they provide on-demand instructions virtually to the users. We can also see the innovative products introduced by Amazon and Google that incorporate artificial intelligence in them and are capable of listening to user instructions as well. All these innovations have become possible just because of advancements in the digital space.

Speed to Market

The shorter life cycle of the product is another major benefit of this transformation process. This is a highly crucial thing for organizations manufacturing products that incur high manufacturing costs. Now with digitization, many of the processes are completely virtually, thereby cutting the time to market for each product, and thus the digital transformations make production more economical and profit-generating.

Better Decision Making

Organizations having all the operations and processes supported by adequate software solutions have the doors open for better visibility which helps in recognizing what works effectively and what should be improved for betterment. As digital equipment and tools are capable of real-time collection and processing of data, therefore concerned authorities or managers in the organization analyze the patterns and recognize the various opportunities and make decisions that can help enhance performance and productivity. Real-time and relevant data helps exceptionally in effective decision-making.

Enhanced Security

Understanding the importance of organizational as well as customer data collected, organizations have become more responsible for the protection of the data with the help of innovative security tools and software. Various software solutions have been developed to empower organizations so that they can prevent their system from cyberattacks and thus protect their sensitive data. This encryption and security have become possible with the incorporation of digital technology into the industries.

Competitive Advantage

With an improvement in the digital infrastructure of your organization, you are inviting various exceptional advantages over your competitors, as digital infrastructure will help you to be more customer-focused and satisfy the needs of your customer base in a more personalized way. This means your audience would surely find your products or service more engaging or attractive than what your customers have to offer. More analyzed and personalized business strategies with the help of relevant digital solutions will help focus on the demand of customers, and hence your audience satisfied this way can drive great profitability to your business, and for this, all credit goes to the involvement of digital technology.

Challenges of Digital Transformation

In addition to the benefits, there are several challenges related to the implementation of digital transformation that every organization considering this process has to face. But if successfully handled and coped with those challenges, they can enjoy the wonderful benefits of digital technology. The various challenges are:

Resistance from Employees

There may be employees in the organization who may resist the possible changes required to be implemented for carrying out transformation. They may do so because of a feeling of insecurity about losing their jobs as they may not have relevant skills. If so, it is a big challenge for any organization as, without their cooperation, an organization can’t move forward. Also, insured employees may not be as productive and efficient as those satisfied employees.

To overcome this situation, organizations are required to adopt a customer-centric work culture where all the processes are flexible, keeping in mind the demands of the customers. This will help the employees understand the need to possess new skills to match the changing requirements of the audience.

Lack of Efficient Strategy and Clear Vision

This is a challenge if organizations don’t invest proper time and effort in framing the right transformation strategy. For framing the efficient transformation plan, there must be a clear vision in mind in relation to the objectives of the organization and their fulfillment with the help of digital solutions. A successful plan begins from a business perspective.

To overcome this challenge, there should always be clear business objectives for every project organization deals in. It must be ensured that those objectives are served by digital technology effectively.

Lack of Data Management Strategy

Another major problem that organizations face is the lack of an adequate strategy for collecting and utilizing customer data. Gone is the time when customer data related to interaction with them was kept in separate boxes.

It is essential to drag your customer data through an interconnected system together and have a clear and coherent image of all the interactions with your customers. This will facilitate decision-making to a higher level.

Rigid App Development Processes

If your organization’s app development processes are inflexible and take many months to release cycles, it will be difficult to implement data transformation processes and tools.

For this, implementation of agile technologies and processes is recommended as these can support frequent integrations and release of products. This product development can be iterated using the measure, build, learn model, which enables the release of new features frequently.

Conclusion

Being a business organization or startup, if you want to survive in the next decade in the market, it is essential for you to incorporate full-fledged digital technology with effective digital transformation services. By optimizing your business processes this way, you can provide an outstanding customer experience and enjoy great rewards in return in terms of improved productivity, efficiency, revenue, and profit.

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