What is Digital Transformation?
Table of Content What is Digital Transformation? Automation is the first step in digital transformation Digital transformation allows businesses to collect and analyze customer data Challenges in digital transformation Digital Transformation across different industries Future of digital transformation Digital Transformation is a term that is often used to describe an organization’s attempt to create a better user experience. It usually involves using technologies like artificial intelligence and machine learning, mobile apps, and social media to boost employee experience. Companies are also embracing the benefits of digital technology to improve the customer experience and make their company more competitive. What is Digital Transformation? In a nutshell, digital transformation is a process that transforms the business to provide a more efficient and consistent customer experience. For example, a clothing company may wish to digitize its backend inventory to provide a more unified experience between brick-and-mortar stores and online shoppers. It could be done by introducing new apps to support business operations and streamline workflows. While the term can seem confusing, the reality of digital transformation isn’t easily described by this term. In many ways, the phrase refers to changes in society, economic conditions, and even regulations. In other words, it’s a radical change in organizational competencies and processes. Companies are attempting to use these new technologies to make their organizations more customer-centric, increase productivity, and reduce costs. However, the phrase can also refer to the necessity to meet the human need to interact with the world. Businesses can transform their businesses using a wide variety of digital technologies. The key to digital transformation is looking at every business aspect and changing it accordingly. A social media presence may replace traditional department and team structures, and marketing and service functions may be tied together using a digital platform. However, not all these changes are reasonable. You can implement some of them if you know what they are before implementing them. Several factors make a business embrace digital transformation. Once you get started, you’ll have a clearer picture of the changes you need to make. Read Carving a roadmap to Digital Transformation for more. Digital transformation allows businesses to collect and analyze customer data Previously, data might have been scattered among disconnected platforms, and companies may have struggled to collect it. Now, digital transformation can help companies collect, centralize, and analyze their data, facilitating better corporate decision-making. The benefits of digital transformation go far beyond just data analysis. With digital transformation, data is consolidated and organized into a single database for business intelligence. In the future, this data can be leveraged to inform business strategy. Data-driven improvements translate into improved customer service, sales channels, and offers. When combined with an effective digital strategy and an efficient team, these benefits can lead to business growth. Digital transformation is lengthy, so be prepared to spend time and money to get it right. However, it can be well worth it in the end. Automation is the first step in digital transformation Automation can streamline processes and reduce the workload of human employees. Organizations can optimize performance and increase revenue by streamlining workflows and implementing API integrations. The next logical step is hyper-automation, which can automate itself. Your organization can use new technologies and integrate them into existing systems. For example, eBay’s popular e- commerce website implemented API integration into its systems, increasing its revenue. Automation works in synergy with Big Data, and big data has the potential to change operations and business models. Big data allows organizations to organize their data in meaningful ways and extract useful information. This information is crucial to model and make relevant decisions. These technologies also facilitate digital transformation. 5G and IoT are some of the leading examples. These technologies are already transforming business processes. Your one-stop shop for Digital Transformation From Smart Design to Smart Manufacturing or from Business Process Automation to Custom Built Solutions, Prescient can provide value to your Digital Transformation needs. Challenges in digital transformation The increasing adoption of new technologies in the manufacturing sector has made digital transformation necessary for most companies. However, these new technologies aren’t without their challenges. For instance, rampant cyberattacks pose the biggest hurdle to widespread adoption of digital transformation, especially in data-intensive industrial sectors. Nevertheless, these risks will gradually be overcome, as the benefits of this technology will outweigh any risks. Overall developments regarding data security will have a significant impact on the market over the next few years. One identifying aspect of digital transformation is its ability to capture, store, analyze, and share massive amounts of data. It allowed businesses to collect, process, research, and share vast data. However, as networking and the internet became more widespread, big data created new challenges for digital data management and analysis. Thus, data centers, warehouses, and lakes were created to address these challenges. Despite these challenges, digital transformation continues to be a critical factor in the progress of any economy. Digital Transformation across different industries There are many benefits to implementing Digital Transformation across different industries. These benefits range from reducing support tickets to enhancing customer satisfaction. These companies successfully implement various technologies to improve their business and create new revenue streams. By implementing these technologies, companies can improve supply-chain efficiency and optimize their factories through self-diagnosis capabilities. But before implementing Digital Transformation across different industries, businesses must first understand what drives it and how to implement it in the best way. It’s important to note that any new technology must fit into the company’s ecosystem and tech stack. While these new tools can increase ROI, they may require significant investment to implement and train employees. Future of digital transformation The evolution of customers is driving the adoption of digital technologies. Today’s tech-savvy consumers expect an excellent experience across multiple touchpoints, transforming customer experiences. While this trend affects all industries, it also affects every job function. Digital platforms will improve access to remote operations. Organizations will also make employee well-being a top priority. Edge computing and quantum capabilities will enable predictive analytics. And
Read More
Carving a roadmap to Digital Transformation
Table of Content Creating a digital transformation roadmap SWOT analysis Defining mini-projects Identifying challenges along the way Define Corporate Values Do you have a strategy for digital transformation? According to a Statista survey published in 2021, about 60 percent of executive search firms declared that they had implemented a digital transformation strategy or improved their efforts in developing one due to the effects of the COVID-19 crisis. But before you can build a digital transformation strategy, you must establish a foundation. If your retail business operates both in physical stores and online, you must invest in the capability of the online channel to improve the customer experience. Invest in tools that map the user journey and resources to collect data. Moreover, your roadmap should include all the challenges that will come up along the way. Please go through some of the common roadblocks faced by companies undergoing digital transformation and the steps to overcome them. Creating a digital transformation roadmap It is essential to create a step-by-step roadmap to digital transformation that will provide clear directions and a clear destination. While there are many factors to consider when determining the best way to drive digital transformation, team alignment is one of the most important. The people responsible for executing the business strategy must share the vision and embrace open communication. Failure to be specific about the transformation details will leave things to chance and lead to misguided initiatives. A well-developed digital transformation roadmap should focus on integration and alignment. All stakeholders must be on the same page, and the technology must be integrated with existing systems and processes. In the digital age, companies can’t afford to have one piecemeal approach because it can leave gaps in security and undermine the overall goal. A comprehensive roadmap integrates technologies, software, and processes to maximize the chances of success. A digital transformation strategy aims to eliminate inefficiencies, improve customer service, and increase revenue. It is important to remember that digital transformation is a process that takes years to complete. While the result may differ for each company, it will help to have a general idea of how to approach the process and plan accordingly. For example, the end goal should be “Point B” in the roadmap, while the next step is to fill in the gaps between where the company currently is and where it wants to be. SWOT analysis Next, you need to consider your competitive position and identify the challenges ahead. While it’s essential to be realistic when determining your competition’s strengths, identifying threats is equally important. Keeping rose-colored glasses on will prevent you from making the best strategic decisions. However, assessing threats is key to your business’s digital transformation success. Make sure you’re honest and objective in evaluating the current position of your business. Using SWOT analysis in the context of digital transformation can effectively help your office transition. To create a successful SWOT analysis, you’ll need a diverse team composed of executive and mid-level employees. Include people from various departments so everyone can contribute their knowledge and expertise. The more varied the team, the less likely it will be to make a mistake. The best approach is to separate internal and external strengths and identify what your business can do to take advantage of them. The most effective way to identify internal and external strengths and weaknesses are to divide the categories by controllable and uncontrollable factors. It will help you make a more accurate SWOT analysis. The main mistake people make is to confound weaknesses and opportunities and make the SWOT analysis process more difficult. Once you have done this, you’ll be better prepared to determine what your next steps should be. A proper SWOT analysis can help you identify your company’s strengths, weaknesses, opportunities, and threats. It can also help you determine how to capitalize on these factors to strengthen your competitive position. Performing a SWOT analysis can help you formulate wise business strategies that will boost your company’s competitiveness and position in the market. It’s also a good idea to consider external factors like population growth, competitive trends, and economic climate, as they can affect your company’s ability to compete. If you haven’t incorporated SWOT analysis yet, it’s time to do so. Defining mini-projects Creating a digital transformation initiative roadmap should start with defining the key activities. These activities include technology projects, supplier ecosystem changes, and business process modifications. It should also identify high-level cost-benefit projections for each activity. Then, define each activity on the roadmap as a mini-project. By defining these mini-projects, the roadmap can be used as a guide to determine which activities are the most critical and which ones are not. Clearly define the goals and objectives for each mini-project. Identify the purposes and responsibilities of each team member. Determine how each member of the team will contribute to the project. Make sure they are aligned with the overall strategy. Assign roles to individuals, assign responsibility for specific tasks, and set milestones for success. After each project is completed, evaluate results, and determine if the project has met expectations. Identifying challenges along the way Businesses may face many challenges while embarking on a digital transformation journey. They may lack the skills and resources to implement a full-fledged digital strategy. Assessing an organization’s readiness for digital transformation is necessary to avoid getting stuck in a rut. While the organization may be reluctant to use new technologies and processes, it may still be able to work with early adopters that are prepared to implement these technologies in operations. As companies begin their digital transformation journey, they should analyze the data collected by their existing processes and measure the impact of these changes on their business. Data analysis should be conducted to identify trends and patterns. For example, some prominent OEMs produce enhanced equipment that can improve fuel efficiency, predict downtime, and streamline maintenance processes. These advanced features are known as Equipment-as-a-Service (EaaS). Embedding digital technology within an organization requires the buy-in of every employee,
Read More
The Manufacturing sector’s road to Digital Transformation
For the last 20 years, the digital revolution has cast its shadow over every area of a well-functioning society, be it commerce, banking, or education and healthcare. The common thread throughout this digital revolution has been that those who do not embrace technology will eventually be left behind and replaced. It especially applies to manufacturers, who face the challenge of reducing costs and constantly keeping up with the global marketplace competition. This article will define what Digital Transformation is, explore its implementation, and discuss the challenges it presents. Finally, we’ll look at the ideal Digital Transformation strategy. Taking advantage of new technology such as 5G can improve visibility, lower costs, and increase flexibility; the benefits of digital transformation in the manufacturing sector are significant. But how can companies get started? Let’s look at some of the challenges and opportunities of digital transformation in manufacturing. What does digital transformation mean? In simple words, digital transformation is the large-scale exodus of the manufacturing sector and other domains from the traditional, analogue, manual mode of work toward digital technologies. It isn’t just about putting a few computers onto the table. It is about embracing digital technology from top to bottom, end-to-end levels. Digital transformation is not related to physical conversion but also involves statistical analysis and data to enhance manufacturing processes to ensure a thriving business. The advent of digitalization in manufacturing can help companies become more flexible, responsive, and cost-efficient. By integrating modern tools into production, digital transformation helps companies manage inventory and costs. It can also improve service to customers. By incorporating digital tools into manufacturing processes, companies can enhance the quality of products and reduce non-productive time. Digital tools help companies stay on top of the latest trends in the industry, and they improve productivity. It is important to remember that digital transformation is a process that takes years to complete. While the result may differ for each company, it will help to have a general idea of how to approach the process and plan accordingly. For example, the end goal should be “Point B” in the roadmap, while the next step is to fill in the gaps between where the company currently is and where it wants to be. Caution! A business that overlooks the importance of digital transformation is setting itself up for failure and providing their competitors an advantage in the market. In a survey of manufacturing companies, it was found that 36% accelerated their digital transformation. A further 35% slowed their digital transformation, and 47% remained untouched. Of the companies that have undertaken digital transformation, only 30% plan to increase their investment in this process by 2022. As per a Statista survey, spending on digital transformation and services worldwide has grown exponentially from 2017 to 2025 (in trillion US dollars). Implementation of Digital Transformation Implementation of digital transformation in your company might seem a bit uphill task. However, there are four key areas where you can focus on implementing digital transformation successfully. They are as follows: Boost your employees Educate, Encourage, and Empower your employees. These are the three words you should focus on when introducing new technologies to your employees. It can be challenging if they are reluctant to adopt it. You need to give them some time and space to innovate as much as possible. Even if it is one step at a time, it is still worth consideration. Interact with your Customers Customers have a higher expectation of service speed and an enhanced experience. Utilize data and statistical analysis for better engagement with customers. It helps companies cater to the needs of their customers by offering the best possible experience. Track their interactions, choices, and frequent search history to understand their mindset. Enable customization to let customers play around with products and decide what they need. Optimize the work processes Optimize your processes and human resources. The old-school way of working leaves many redundancies and sections where the time lag is so remarkable that it can affect your entire business. The optimizing system leaves you relieved that your systems are sufficiently tuned to operate the business smoothly. Transform the core of your business if necessary It refers to changing the core of your business to keep up with technological advances. You must adapt to the changing market or be left behind with increasingly irrelevant products/services. If that requires modernization and introducing new technologies, so be it. The Challenges with Digital Transformation Despite technological advances, traditional manufacturing companies face increasing competition from newcomers who successfully apply new technologies to their businesses. You must overcome certain obstacles in digital transformation to gain a competitive advantage. These include: Worker syndrome One of the biggest challenges in implementing digital transformation is culture. As automation becomes more prevalent, many workers look down on the benefits of digitalization. In fact, the challenges with digitalizing the manufacturing sector are directly related to the workers themselves. Employee resistance to change and employee pushback may be due to their inexperience with the technology or fear that automation will take away their jobs. Inadequate Information A lack of information is a significant problem for many businesses. They don’t have the digital expertise necessary to understand what’s available or how it can be used, especially the workers. Unfortunately, errors in manufacturing are universal. Workers may set up machines incorrectly, mishandle equipment, or send sensitive data to an unknown email attachment. Moreover, workers will be left with an unavoidable culture of ‘that’s not how we do things. Poor Strategy The lack of a strategy is a significant hindrance for many businesses on their way to completing the digital transformation—a poorly planned strategy results in failures. For instance, a lack of clear path, funding, and legacy systems are just a few of the most common strategic obstacles. Therefore, almost 50% of manufacturers enlist the help of consultants to undertake digital transformation projects. Prescient Technologies has been a consultant to some top names worldwide who wanted to embrace digital transformation. Let us help you in your
Read More