Digital transformation is currently one of the key trends in business. Digital transformation is the use of technology to transform analog processes into digital ones. It involves the use of digital technologies to improve products and services and increase efficiency. We deal with digitalization in all areas of life, including in the company.
Digital transformation in business
Digital transformation is a process that involves using digital technology to achieve better business management. This technology can be used in various fields such as production, finance and sales. It may include introducing automation or improving business processes and building new information systems. Digital transformation can help companies serve customers more effectively, optimize their operations and avoid risk by using the right digital tools. It is an important tool for adapting to a dynamically changing business environment and maintaining competitiveness in the market.
Three aspects of digital transformation
Any digital transformation plan should address three areas:
- Business process transformation – includes changing and adapting processes to changing business goals, competition and customer requirements.
- Business model transformation – may cover a wide range of activities, from creating new products or services to introducing innovative IT solutions or reorganizing the organizational structure.
- Organizational and cultural transformation – successful digital transformation should be consistent with the culture and values of the organization.
Cultural transformation
Cultural transformation, apart from formal changes (including the creation of new positions and reorganization of the hierarchy in the company), brings with it transformations in areas such as:
- communication style,
- management style,
- values and mission of the organization,
- approach to learning and development,
- creating a development environment,
- competences necessary for the functioning of the company,
- business strategy.
Benefits of digital transformation
Digital transformation implemented by companies brings many benefits.
It enables companies to quickly respond to changing market needs. Moreover, digital transformation offers new business opportunities and improved internal processes. As technology improves, companies can create better products and also create stronger relationships with their customers by personalizing content or services. With digital transformation, companies have greater potential to generate additional revenue and achieve success. Benefits of digital transformation:
- Improving communication and better access to information;
- Greater efficiency and productivity;
- Improving company culture;
- Better customer experience, improving the quality of customer service;
- Greater competitiveness of the organization;
- Development of new products and services;
- Improving profitability and strengthening revenue channels;
- Attracting and retaining new leads and customers
- It supports flexibility and resistance to disruptions (an example is the COIVD-19 pandemic, which has shed light on many weak points of modern processes and business models).
Digital transformation of the company - an example of digital tools
What tools can we use during the digital transformation of the company?
- The CRM system – Customer Relationship Management is software for managing customer relationships. It allows you to collect, organize and manage data.
- Cloud – provides various teams and departments with one centralized online data center.
- ERP solutions - Enterprise Resource Planning are software for enterprise management, i.e. enterprise resource planning.
- AI and machine learning – enables the analysis of new data and the search for solutions that have worked in other situations previously known to the system. Machine learning is also an important part of the growing field of big data analytics.
Digital transformation – examples
Digital transformation in a company does not have to be a complicated process, and even small changes significantly affect customer satisfaction and company development. Digital transformation in Poland has already been implemented in most companies, and now there is talk about its optimization. Examples of digital transformation:
- Digital banking (e.g. PKO BP, BNP Paribas),
- Digital loyalty cards (e.g. Biedronka, LIDL),
- Click-and-collect services (e.g. Sephora),
- Digital discount coupons (e.g. Rossmann, Żabka),
- Online stores (e.g. CCC, Ikea),
- Telemedicine advice (e.g. Luxmed),
- Maintenance-free stores (e.g. Żabka Nano).
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