Digital Transformation is the process in which companies use digital technologies to solve traditional problems, such as drops in performance, productivity, agility, and effectiveness. This transformation must start from a structural change in organizations.
Have you heard of digital transformation? This term has gained the attention of companies in all industries around the world.
But what exactly is it? Some people think it is an IT effort or that it involves improving the customer experience, and a myriad of other ideas and definitions.
However, digital transformation is not a concept for the future, but something that today’s companies have to pay the most attention to in order to stay alive.
This is why it is necessary to understand exactly what this transformation means, what its impact on society is, and how to apply it in business processes.
With that in mind, we have put together this guide with everything you need to know about digital transformation. Are you ready? Then let’s go!
What is digital transformation
If we contextualize the need for digital transformation with history it is easier to understand what is happening within business.
Companies formed before the emergence of the Internet face a major challenge: many of the rules that guided business progress in the pre-digital era no longer apply.
The good news is that change is possible! These companies can transform themselves and flourish in the digital age.
Digital transformation is a process in which companies make use of technology to improve performance, increase reach, and ensure better results. It is a structural change in organizations, giving an essential role to technology.
But then virtually all companies are investing in it, right? Wrong! This concept is much broader than having a fan page or a corporate blog.
It is a radical change in the structure of organizations, where technology plays a central strategic role, and not just a superficial presence.
This takes time and consumes resources, but it is not only the large organizations that can implement digital transformation programs, because it is not only about those who have more money.
Rather, you need to understand the whole process that leads to this change and work collaboratively to achieve it.
This, in itself, makes digital transformation much more of a management challenge than just a marketing or technology one.
Among the factors we need to understand is the impact of this kind of change on society at large, which brings us to the next topic.
Impact of digital transformation on society
It is essential to understand that digital transformation has a profound impact on society in general. From this conclusion, the value of implementing change programs in companies becomes clearer.
But how does this impact happen? It is simple, think about how the use of technology is transforming our lives every day.
Things have become faster, the volume of information is infinitely greater than before, and it just keeps on growing.
All this makes people more distracted and demanding than ever. This is the first change: there is a clear change in behavior.
In addition, our lives have become much “easier”, as automated services and products offer a convenience unthought of a few years ago.
Thinking from the point of view of public utility services, as in the case of hospitals, police authorities, and fire departments, this means more lives saved thanks to technology.
On the other hand, new challenges arise, such as the inconvenience of companies not being prepared to deal with customer complaints and the act of digitizing without worrying about the user experience throughout the purchasing process.
As technology evolves, both new solutions and problems that need attention arise, forcing companies to adapt to meet the demands of society.
This is where digital transformation comes in! Through it, it is possible to optimize various processes. The possibilities are unlimited.
Future and Generation Z
Generation Z consists of people who were born after 1994 and are considered digital natives. According to Fast Company, by 2020 Generation Z will represent 40% of all consumers.
This generation grew up surrounded by digital devices. Therefore, they will be the people who will demand these changes the most. And that future is not far off. Today, the older generation are already on the job market, graduating from college.
Because they are multitasking and can process information faster than any previous generation, members of this generation are annihilating marketing practices that have become obsolete.
They are able to consume digital content on multiple screens, using a wide range of devices simultaneously. Moreover, they already have buying power and expect companies to be digital.
And what role do companies play in this context?
They are in charge of providing the generations with the digital workspace technology that will enhance the employee experience, with the aim of meeting their different expectations and preferences.
You have to think about your customer’s ever-changing needs to understand the importance of digital transformation.
Technological progress
Digital transformation is not just another buzzword, a nice term to say that it is worth investing in Facebook Ads or something like that.
On the contrary, it is part of a much larger process, which is called technological progress. There are three main phases, digital transformation being the last one.
See what each of these stages consists of, and how they culminate in the movement we are currently witnessing:
Digitization
Digitization is described as the process of transition from analog information to a digital form. How so?
It is the representation of signals, sounds, images, and objects in the digital medium by means of binary values (each value is represented by 0 or 1).
In other words, data is transformed into bits and stored in electronic devices.
Entire industries have benefited greatly from this process, as it has become much easier to store and protect important and sometimes confidential information.
Digitization
Digitization is now much broader and consists of the actual changes made in organizations by means of technology.
This includes some very advanced concepts such as Big Data, Internet of Things, blockchain, cryptocurrencies, and others.
A common mistake is to believe that digitalization means using more IT, but the examples cited show that it goes far beyond this, as it involves a more holistic view of technology in order to cause change.
