As a first definition, we could say that the digital transformation is the application of digital capabilities to processes, products, and assets to improve efficiency, improve customer value, manage risk and uncover new opportunities for income generation.
However, by digital capabilities we mean those that are electronic, scientific, data-based, quantified, instrumented, measured, calculated, and quite possibly automated.
What is digital transformation?
The digital transformation is the integration of digital technology in all areas of a business, fundamentally changing the way it operates and delivers value to its customers. However, it is also a cultural shift that requires organizations to constantly challenge the status quo, experience, and feel comfortable with failure.
However, Digital transformation can involve reworking products, processes, and strategies within the organization by leveraging digital technology.
Technology drives the need for digital transformation and supports the digitization of an organization. In addition, there is not a single application or technology that allows digital transformation, but there are multiple key processes that an organization must generally have to face the transformation:
Cloud computing, for example, gives the organization faster access to the software it needs, new functionality and updates, plus data storage, and enables it to be agile enough to transform.
Meanwhile, information technology enables an organization to focus its talent investment and research and development money on customized solutions that support its requirements and the processes that set it apart in the marketplace.
Furthermore, mobile platforms allow work to be done wherever and whenever.
Machine learning and artificial intelligence technologies provide organizations with the knowledge to make more precise decisions about sales, marketing, product development, and other strategic areas.
The importance of digital transformation in a world of data
Furthermore, organizations that see digital transformation primarily as a technology difference from traditional transformation with business process engineering will end up losing the power of digital transformation.
Digital collapse processes
However, in today’s world, companies are built through processes, trying to develop high-level processes. Six Sigma and other tools are designed to refine and improve those processes to create efficiency, focus, and quality improvement. In contrast to this, digital transformation reduces the processes that a company currently does or could do, automates the work that people do, and turns the process into the software. What remains is data. Digital converts processes into data.
Meanwhile, this allows organizations to view their business through the lens of data rather than the goal of the process. Suddenly, the data make it clear that the matter people and the experience of customer care.
Data enable speed
Speed is the new currency in business. Meanwhile, organizations must be prompt in meeting the needs or expectations of customers and employees in a competitive market. There are no shortcuts to digital transformation to achieve this speed.
However, as an organization moves deeper and deeper into an automated, software-defined world, it moves faster and faster as data and its important associations emerge. This allows the transformation of what the company does. In a process-driven world, processes must be routine and allow the defined result to be consistently obtained.
There are no short cuts
The temptation to move from a process orientation to a digital orientation is to shorten a few steps. But in reality, this is not possible. However, Digital transformation involves more than collapsing a process into a data set. As an organization moves down the digital transformation path, many aspects of the business model must change as processes and data are interrelated.
However, improvisation and exploration of data to find new meaning will give rise to a series of ideas that will fuel the continuous data cycle.
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