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News & Updates about Digital Transformation

In simple terms, digital transformation is the process of replacing old and outdated business practices with modern digital technologies. It is the reimagination of business models. Digital transformation enables an enterprise to gain customer approval by creating economic value. In today’s competitive market, organizations try to figure out ways to use digital transformation to their advantage. For a company that is planning to undergo digital transformation, it is vital that a sizeable investment is allocated for transition. Secondly, strategy and vision should be clear because digital transformation is a multifaceted undertaking. Similarly, it is necessary for the leadership to properly combine business and information technology.

Investments and Revenues

The idea of digital transformation is not well developed. There are various aspects of business where digital transformation can be applied, such as marketing, procurement and sales, maintenance, supply chain, and automation. Digital transformation initiatives should be evaluated based on their potential to generate revenue. For example, banks regularly introduce new technologies such as the installation of automated teller machines, introduction of online banking, and mobile apps. These initiatives did not increase bank revenues, but if these were not implemented, the existing customers and revenues would have been decreased.

Going Digital

It is crucial to study in advance, the potential implications of going digital. There are two aspects of digital transformation that need to be observed beforehand. First is the complete change of an enterprise’s business model in response to the digital transformation. This transformation is essentially carried out to disrupt the entire industry. The second aspect is related to optimization, this aspect becomes important when companies have transformed digitally but they still need to constantly improve.

Disrupted Models

We have already seen many examples of technology completely changing business models. Today, the entire industry of airline ticket and hotel booking has shifted towards internet. Similarly, the internet has changed the way shop and sell. Online shopping has become an indispensable art of todays life. Today companies could save millions by simple process automation.

Value for Customers

Digital transformations are not all about revenue and income. Instead, its main purpose is to generate value for its customers. The primary beneficiaries of digital transformation are consumers. For example, an agricultural supplier developed an integrated online business model. The company’s rating increased by 24%, whereas its sales increased by almost 20%. Better customer services are necessary for maintaining the existing market share. Digital transformation has enabled many enterprises to initiate new programs to increase revenue and market share. For example, in many countries, Uber initially offered car rides, but it expanded its business by adding food and package delivery as well as freight transportation and motorbike rentals. In conclusion, it is up to the leaders of an organisation to decide about going digital. The decision-making process should be based on the latest analytics and insights because the nature of digital transformation is unique. It offers scale, freedom, and customizability. These factors sometimes require a change of direction for an entire organization. That is why the decision to transform must be taken by leaders.

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