Digital technologies have been introduced into business processes for a long time. This was done to offer the best service to the client, to stand out from the competition. Now, it is more likely that those who do not use digital technologies for business stand out. The situation has developed in such a way that in order to maintain a competitive position, entrepreneurs must implement technological solutions in their work. They are aimed at optimizing processes and improving service. Why is transformation needed, how to achieve it, and what are its main advantages?
Digital transformation. What’s it?
Digital transformation implies the introduction of modern digital solutions into the work of an organization. Do not confuse this concept with process automation. If automation is simply a reduction in the amount of mechanical, routine work, then digitalization implies a deeper degree of implementation. In fact, this is a whole business reform planned in order to rebuild the entire model of the company’s work and put it on a digital track.
Some might think that this will only complicate things. At the first stages, it may really seem that way. However, transformation is necessary to maintain the ability to compete in the face of rapidly changing market trends. The world is becoming digital, the impact of innovation is rapidly growing, and technology is penetrating into all spheres of human life. Those who do not follow these changes, do not adapt to them, remain outside the economic growth.
Transformation is difficult and requires a step-by-step approach. The process often provokes the formation of new positions in the company and this is natural. The process can go differently in different areas. In real estate, digital technologies help customers to inspect objects remotely. In logistics, due to technological progress, it was possible to reduce the cost of organizing transportation, optimize document flow, establish communication with passengers and drivers. There are many such examples.
What is digitalization for?
Most often, digitalization is resorted to by companies working in the field of E-commerce, IT, and finance. Due to such transformations, companies improve their reputation and improve performance in several areas:
- efficiency;
- work planning;
- enterprise management;
- customer service.
In addition to these improvements, the business optimizes its costs, creates a business model that works flawlessly in the digital economy and adapts to changes.
This is a necessary step for those companies that want to improve their service and are tired of working with the same type of customer requests. Digitalization automates routine tasks and establishes corporate communication.
Digitalization tools
Technological modernization of the enterprise is impossible without the technologies themselves. More often than not, several tools are used:
- Artificial intelligence. This property allows the system to learn, make informed decisions, and act like a human being. It is used in marketing, logistics, manufacturing, finance, commodity science, and many other industries. Enterprises that have implemented this technology have reduced operating costs and increased production capacity.
- The Internet of Things (IoT). Without this technology, it will not be possible to establish real-time monitoring and control of equipment. It combines several types of devices into one network. Within a single network, they work as a well-coordinated mechanism, analyze, process, and transfer data to other devices, applications, and programs.
- Cloud technologies. Systems that provide the user with remote access to resources. These can be repositories, databases, servers. Such systems work almost smoothly, a personal account can be accessed from anywhere in the world and on any device, and resources can be tailored to the needs of the business.
- Big data. For some processes to work properly, it is necessary to analyze a large amount of data. Special systems are able to quickly process such arrays. Through the introduction of such tools, the company gets the opportunity to adapt faster to changing conditions.
- Chatbots and automation. Automation of simple processes, the introduction of chatbots into the work allows you to relieve staff. This significantly saves time and reduces the number of possible errors.
Examples of digitalization of companies
There are already many examples of successful digitalization, especially among large companies. For example, Starbucks has done a lot of work on digitalization. In order to make equally excellent coffee in all their coffee shops, recipes had to be uploaded to 8 thousand flash drives twice a year. After that, the staff went to the coffee shops and manually loaded the drink recipes into the coffee machines.
All coffee machines were equipped with Azure Sphere chips from Microsoft. They allowed you to download recipes directly from the servers, bypassing the complicated manual download process. The digitalization process was complex and required changes in many internal processes. However, this eventually saved the company a lot of time and money.
Walmart has demonstrated an equally impressive example of digitalization. They focused not only on improving the quality of service, but also on simplifying the work of their employees, freeing them from routine tasks. So, the FAST Loader robot unloads boxes, and the Bossa Nova scanner performs automatic inventory. Employees do not do physical work, they analyze sales, develop strategic solutions, and advise clients. But even consultations have already partially switched to automation. Some of the released employees have been trained for system operators, optimize the order configuration and its delivery to the client. There are many such examples.
The benefits of digital business transformation
Any modern manager knows what advantages await his business after the introduction of technological solutions. Here are a few:
- automation of routine tasks;
- improving the customer experience;
- increasing the effectiveness of advertising;
- optimization of business processes;
- communication with the user;
- rapid development;
- flexibility of business processes;
- effective data management;
- expanding the geography of the company.
In addition to the benefits, entrepreneurs need to be prepared for the challenges of transformation. Employees will have to be trained, they must clearly understand how to handle new systems. Some customers who do not accept progress may be unhappy with the changes, which also needs to be prepared for.
Steps towards digitalization
In order for digital transformation to be successful and less “painful” for the company, follow the sequence of technology implementation:
- evaluate current business processes;
- develop new technology implementation strategies;
- launch the integration of technologies into the business structure;
- train staff to interact with new systems;
- evaluate the results;
- make adjustments;
- continue to monitor the process and adjust it to the needs of the business.
When technology is firmly embedded in the company’s work, do not stop there. Collect feedback from employees, make adjustments, and improve processes.
Conclusion
Modern digital technologies for business are a necessity that allows a company to compete on equal terms. You should not categorically treat the introduction of new systems, programs, and technologies. The best strategy is to look at your competitors, what the developers offer and choose what can be optimally integrated into a single company. In the future, financing the transformation will bring more money, save more time.
