Cloud computing, big data, internet of things, artificial intelligence, chatbots, the blockchain, data analysis, social networks, remote access, mobility, applications in the cloud. What do all these words have in common? All represent a breakthrough in how companies restructure their processes to deploy a digital culture that increases their productivity and results.
What is Digital Transformation?
The concept of digital transformation is to make analogue and offline processes digital through the use of technology to improve performance, increase reach and ensure better results. This transformation movement is being adopted by many companies of various sectors and sizes.
If you think that your company cannot transform because it is small in turnover or structure, it is important to remember that in this scenario what matters least is the size of the company. Small businesses and startups have sprung up and caused a major revolution in markets dominated by giants, often with very small teams and budgets.
Digital Transformation is only for technology companies
If you think you can only adhere to the technological advances of digital transformation if your company is a technology startup, you are mistaken. The revolution hits markets and niches you cannot imagine. Want an example? Have you thought about collecting information and controlling pest infestations, or analyzing climatic variables such as rainfall, temperature, and soil erosion through an application?
One of the great benefits of digital transformation is that there are numerous tools that allow any business, whether it is technology or not, to develop a digital culture.
Why You Should Join Digital Transformation
If you think that digital transformation is fleeting and you should not worry about it now, we’ve brought some data that will show how important it is for your company’s success to deploy that concept.
Data released by Sysorex, a company specializing in data analysis, some numbers confirm that this trend has come to stay.
- 900 million Facebook posts per day;
- $ 17 billion transactions using credit card per day;
- 7 billion active mobile devices;
- 11 billion things connected to the internet;
- $ 3.7 trillion in all types of transactions over the Internet;
- 2.5 quintiles of bytes are created per day;
- 90% of the data bytes in the world were created in the last two years.
According to the research, it is estimated that America’s GDP will reach US $ 7.3 trillion in 2025. The mobile ecosystem is expected to move about $ 360 billion in that period. In 2025, the region is projected to have 2.5 billion devices (smartphones and other devices) connected, mainly with mobile connectivity, the big data and the Internet of Things (IoT).
According to research carried out by the Altimeter Group, companies that joined the digital transformation presented five benefits in their company:
- 41% increased market share;
- 37% increased consumer engagement in digital channels;
- 37% positively increased employee satisfaction rates;
- 30% increased consumer billing;
- 32% saw an increase in the volume of web/mobile traffic.
Do offline to online
Implementing digital transformation in your company is taking processes that were once offline to an online reality. For this you will need to take three steps:
The first step is to transition from physical data to digital media. In other words is to transform documents, invoices, photos and other physical data into a digital version. An example of digitization is a block of invoices that is converted into an electronic invoice.
Scanning is establishing digital processes. Now that all your company data has been transformed into digital it is time to conduct processes in a digital way. Once you have scanned your invoices, you can connect them to your payment software to perform the task automatically after a sale.
The last step is the digital transformation itself. It is nothing more than the result of the first two. When your company transfers the information and establishes digital processes the digital transformation is happening.
Pillars of Digital Transformation
Now that you’ve seen how digital transformation can happen in any company it’s time to understand the pillars that guide the transformation process. There are three basic points you need to focus on:
We are living in the age when the focus is on the customer. It is he who has the power to decide and who decides when and which brand to buy. Therefore, one of the pillars of digital transformation encompasses a number of aspects, such as:
- Audience analysis: Through analysis tools, it is possible to collect data to segment the audience based on their behavior and needs;
- Precision Marketing: With a focus on loyalty who is already your customer, you can create offers that are aligned with the expectations and desires of the client;
- Simplified sales process: More and more customers want less complication to carry out their purchases. Its focus should be to remove the barriers to facilitate this path;
- Customer service: Fast and quality service that solves the customer’s needs in the shortest possible time;
Another point of attention in digital transformation is the optimization of your company’s operational processes. Therefore, your company should invest in:
- Internal communication: The faster and clearer the members of your team, the better and faster the company processes;
- Tuning across sectors: Improve integration and collaboration between your company’s different teams to avoid friction and noise in your company communication;
- Transparency: Knowing what happens and understanding why it makes things easier to follow;
Digital transformation affects the business model of many companies, as many barriers are broken a new horizon opens up for companies such as:
- Expansion of the mix of products and services: With the inclusion of digital resources in the day to day of the company it is possible to expand the usefulness of a product or service or to include new products in the company portfolio;
- Transition from the physical to the digital: It is very common for physical stores to become eCommerces that serve a wider range of customers;
- Digital from birth: Companies that are already born with digital products since its conception, such as: SaaS companies, PaaS, apps, and Cloud hosting companies.
Technologies in the Digital Transformation
Some terms have come to prominence with the explosion of the concept of digital transformation and are mainly responsible for the success of this approach. Some of them are:
Access and share documents and files from anywhere and any device. With the help of the cloud your company is no longer physically limited and can be anywhere and everyone can collaborate with the execution of the tasks.
Data analysis is one of the stars of digital transformation. Understanding your customers’ behavior, desires, and expectations is gold. In this scenario, Big Data plays a key role because it allows companies to store, manage, and analyze the countless bytes of data for insights that were previously not possible.
Identify behaviors and patterns to predict future situations. With machine learning, we can teach computers to detect these patterns and indicate effective solutions to those problems rather than programming the software to perform a specific task.
Connectivity between multiple devices. Imagine all your devices: Smartphones, tablets, cars, machines, computers, engines, many other wearable devices connected and exchanging data between them to facilitate and automate processes.
Remember that digital transformation is not just automating processes or adopt technologies like Cloud Computing and Big Data in your day to day life. It’s a much more comprehensive concept, which involves a significant shift from your business model to your employees’ work processes.
Do you believe your business is ready to start a digital transformation?