What is digital transformation and why is it important
The digital transformation includes organizational, operational and cultural changes with the
aim of using digital technologies more efficiently. According to Deloitte, it is about becoming
a digital company and digitizing essential business processes such as personnel management,
supply chain optimization, customer interaction, marketing and much more.
Table of Contents
What is digital transformation
Digital transformation is the process of using digital technologies to create or modify new – or
existing – business processes, cultures, and customer experiences to meet changing business and
market needs. This reinterpretation of the economy in the digital age is the digital
This is a step-by-step process that involves using data more effectively and relying on modern
tools aimed at streamlining business operations while changing leadership models and the mindset
How does digital transformation works
The introduction of artificial intelligence into your service organization is a prime example of
the power of digital transformation. AI-powered chatbots that answer simple customer queries act
as an inviting presence on your website and reduce the time customers have to wait to reach an
Imagine. The digital transformation begins with ambition, with the proposal to improve and
streamline a certain business process with the help of a certain technology.
Deliver. In this phase the ambition takes on a more sustainable form. That is, the company
suggests, designs, and tests the solution to achieve the primary goal.
Run. This is the phase in which the proposed solution is integrated into the business processes
by merging the efforts of the internal and dedicated team for digital transformation. After a
certain business process has been digitally transformed, the company must evaluate its success
using clear metrics and improve the next workflow using the same action algorithm.
What is the purpose of digital transformation
Digital transformation is the integration of digital technologies into all areas of a company
that fundamentally changes the way you work and add value to your customers. It’s also a
cultural shift that requires companies to constantly question the status quo, experiment, and
familiarize themselves with failure.
Only 15% of companies have a clear strategy for digital transformation. Having a clear plan of
action can be your competitive advantage and enable your company to prioritize better and save
time and effort.
A digital transformation strategy is a step-by-step plan that leads your company through the
digitization of all essential business processes one after the other. It should outline the
resources required for transformation, including but not limited to human, intellectual, and
financial resources. In addition, a digital transformation strategy should predict the potential
risks and specify viable backup plans.
What are the types of digital transformation
There are four types of digital transformation: business process, business model, domain and
cultural / organizational. We often see companies that focus exclusively on process or
organizational transformation. If all four types are not considered, there remains significant
value on the table.
It is not uncommon for the digital transformation to begin with the realization that the
existing software cannot meet modern requirements and business goals. Many companies take the
first step on this path by modernizing or replacing their legacy systems, improving and securing
the quality of their products, or by getting started with business process automation and / or
data analysis tools.
Depending on your business goals and needs, you will need to outline the challenges you can
face, the tasks you can handle yourself, and the technical gaps you will need third-party help
importance of digital transformation
Digital transformation is the integration of digital technologies in all areas of the company.
It is fundamentally changing the way a company works. Companies use this process to make their
businesses more efficient and profitable.
Depending on your tasks and goals of the digital transformation as well as the identified gaps
and challenges, consider adding a dedicated team to your internal team. Using the services of a
dedicated development team is a cost- and time-saving approach, as the experienced and ready-
to-use team can start transferring skills and knowledge almost immediately and get on your
project under flexible and convenient conditions.
What is the impact of digital transformation
The digital transformation will have a profound impact on the way firms enter and compete in the
market, particularly as processes become replicable at near zero cost margin. Competition will
be vital in driving innovation, and the policies set out by policy makers should reflect this.
Although using dedicated team services in the digital transformation process is an effective
strategy, partnering with the right provider can still be a challenge. In order to design your
digital transformation effectively and to tailor your dedicated team perfectly to the tasks to
be solved, pay attention to the development companies from your niche. Choose the one with
experience solving tasks that overlap the tasks you are facing.
Effective digital transformation should always be driven by a clear vision and strategy shared
by your internal and dedicated team. Hiring the latter is one way to achieve better digital
transformation efficiency. Take a step-by-step approach to digitalizing your business, making
sure to consider the expertise, business and communication practices, values, and culture of
potential development providers.
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