What is Digital Transformation? Importance Aspects, Benefits and Trends

Digital transformation is making use of digital technology to transform existing business processes and services or even creating new ones to keep up with changing market and consumer expectations and radically altering the way that businesses are managed and run, as well as the way the value they provide to their customers.

As per Deloitte, “digital transformation is all about becoming a digital enterprise–an organization that uses technology to continuously evolve all aspects of its business models (what it offers, how it interacts with customers and how it operates).”

As technology advances and your business grows, at this moment it’s not just about businesses deciding to change instead, it’s about the decision of how to change.

Digital transformation involves transforming your company by testing the latest technology and thinking about your approach to everyday problems. Because it’s an evolving process it doesn’t have to be defined by a specific endpoint. According to the MIT Sloan Management Review, which is a journal that studies how management changes in the age of digital technology and says that “Digital transformation is better thought of as continual adaptation to a constantly changing environment.”

For businesses, this means always looking for ways to improve the user experience. This could include providing better on-demand training or transferring data to cloud-based services, using AI, and so on.

3 Key Areas of Enterprise Digital Transformation

MIT Sloan Management Review highlights three major aspects of the digital revolution in enterprises:

1. Customer Experience

Customer Experience working to comprehend the needs of customers more deeply and using technology to help drive the growth of customers, as well as creating more customer-facing touchpoints.

2. Operational processes are improving

Operational processes are improving internal processes through automation and digitization, equipping employees to utilize digital tools and collecting information to monitor the performance of employees and make better business decisions.

3. Business models

Business models changing the way businesses operate by enhancing physical offerings through electronic tools and solutions while introducing digital products and utilizing technology to offer global shared services.

What is the Importance of Digital Transformation?

Although every digital transformation has its unique objectives, the main goal for any transformation initiative is to enhance the efficiency of your current processes. Digital transformation is crucial as companies need to adapt to stay competitive. If you’re not advancing and advancing, you’re in the wrong direction.

Let’s examine a recent case that illustrates the vital aspect of the digital revolution. Southwest Airlines.

The holiday season was a bit hectic; an intense winter storm hit the US on December 21 which led to major cancellations for the airlines. But, just as all other airlines were capable of getting passengers to their destinations on the following day. Southwest had to cancel 15,000 flights by the 22nd of December as well as continuing to cancel more than 250 flights every day during the following week.

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