What is digital transformation?

Digital transformation is the integration of technology in all areas of the business. This will produce a profound change in the organization, processes, competencies and business models. The goal will be to create a more agile organization, with more efficient processes and more satisfied customers.

What is digital transformation?

Because digital transformation will look different for each company, it is difficult to create a definition that applies to all cases. However, in general terms, we can define digital transformation as the application and integration of technology to all areas of the business resulting in changes in the business model, the way it operates and how value is delivered to customers. In addition, there is an important cultural change where experimentation is encouraged, losing the fear of failure, after all, failure is nothing more than learning. In addition to the inclusion of technology, digital transformation focuses the business on the customer, their needs and experience. Creating fast and efficient processes thanks to technology and delivering the highest possible value to our customer. The idea is to use technology not only to digitize a product or service, but to use technology to transform that product or service into something significantly better.  

Why is digital transformation important?

There are many factors why digital transformation is important to any company or business, but by far the most important factor is that it must be done. It’s a matter of survival. How is it a question of survival? It’s easy if we see what the main benefits of digital transformation are:

  • Increased profitability
  • Increased competitiveness
  • Improved customer experience
  • Greater agility

We live in an ever-changing environment, new technologies, new competitors and new ways of doing things are emerging every day. There is only one option, to adapt or to die. We only have to see that of the 5 biggest companies, 4 of them are information technology companies, and 50 years ago they didn’t even exist.

What is a digital transformation process like?

The digital transformation process can be very different from one company to another but will almost always consist of the following parts:

  1. Analysis stage, in this stage an analysis of the current state of the organization will be carried out in order to establish the starting point and the bases on which the project will be developed.
  2. Setting goals, the organization must set the goals it wants to achieve through transformation.
  3. Creation of the digital transformation plan, according to the objectives to be achieved and the resources and capabilities of the organization will create a digital transformation plan detailing the actions needed to transform the different areas of the business, setting objectives, the organization must set the objectives it wants to achieve through transformation.
  4. Implementation, at this stage the improvements and changes of the transformation plan will be implemented, special attention will have to be paid to change management within the organization.
  5. Review, once the implementation is done we will not be finished, we will enter a review phase. We have to be alert, checking that the objectives are met. A digital transformation never ends, we must always be innovating and improving the way we do things.

Who should make a digital transformation?

ALL companies should make a digital transformation, after all, through the digital transformation will reduce costs and increase sales, which company is not good for? Although all companies must carry out this transformation process, it is true that there are sectors that need it more than others. The greater the competitiveness of the sector, the greater the need for transformation because it will give us an advantage over our rivals. Another fundamental aspect is the type of customer we have. If our type of customer, for example, is a young audience, transformation is very important because our customers use the technology on a daily basis and it is part of their DNA. On the other hand, if our clients don’t use the technology much, the transformation, although important because of the internal improvements it entails, would not be as vital as in the previous case.

How can I start my digital transformation process?

We have good news, your transformation process has already begun. The fact that you are reading this post is already a beginning. The digital transformation starts with a reflection on our company. Is there a way to do things better? Are we using technology as an ally? Can we be more efficient? Does this really bring value to our customers? In our blog and on the Internet there are many resources on how to make the digital transformation, different strategies, tricks, technologies, etc.. But we know that at first can be overwhelming, that’s why we exist. From xtrategy digital we help companies to make their transformation, we are experts in technology and we are dedicated exclusively to transform organizations that seek to reach the next level. Are we talking?

Take a look at our digital transformation service for companies.

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