The short answer is because they provide innovative services and products. But, this is an understatement to their accomplishments in the digital innovation field. They have in fact created new business processes and solutions which have impacted the entire tech scene. In other words, they have tackled the “digital transformation challenge”.
What is digital transformation?
The digital transformation definition in business is the use of cutting-edge technologies to improve functions and processes. Companies utilize cloud-based systems, artificial intelligence, and complex data analytics, among others, to modify existing methods or create new ones. These methods help simplify procedures and increase efficiency in functions such as operations, customer service, and IT.
But why are so many businesses going through a digital transformation? In addition to streamlining internal processes, the rapid growth of technology and available resources have changed customer needs and demands. Nowadays, people have access to many services and products through apps, websites, and other tech – and have become more selective in their decisions. To stand out from the crowd, companies need access to more data and faster analytical processes – and need to provide that access as well – to attract and retain customers.
For instance, digital transformation can enhance a company’s marketing activities. By acquiring complex data-driven techniques and advanced analytics, marketers can gain a deeper understanding of consumer behavior. This way, they can reform their marketing campaigns and improve customer experience and retention.
Most of the time, it makes good business sense to take advantage of the technology that’s out there. The real challenge for companies is to choose the right type of technology and also implement it in ways that ensure people will use it properly and securely – and ensure that the new tech integrates seamlessly within their existing tech stack.
What is a digital transformation strategy?
A “digital transformation strategy” refers to all steps and actions a company takes to implement technology and reap its benefits. It starts with understanding current business operations and how they can evolve by means of technology.
Then, the company sets business objectives and analyzes potential risks about implementing software and platforms across processes and departments. Thorough research is essential to identify available resources and how technology can impact the business.
An example of a digital transformation strategy would be revamping the recruitment process via technology. For instance, a talent acquisition platform could include anything from AI that supports sourcing activities to complex analytics on the efficiency and quality hiring methods.
Keep in mind that a digital transformation strategy needs time to produce positive results. Some employees may find transitioning to the “digital world” challenging. Whether these employees are slow to adapt to new technology or whether they’re consciously resisting change, companies need to address their concerns via a well-formulated plan. With the right training and mindset from leaders and managers, these setbacks can be overcome. Digital transformation requires buy-in from all parties – be it executives, employees, or even customers – to truly succeed.