Digital Transformation: what is it and how to implement it?
The rapid and constant evolution of technology has revolutionized our daily lives, from the way we communicate, shop, and even the way we work. As a result, companies of all sizes and segments have seen the need to implement digital transformation to boost their performance and market positioning.
In fact, the search for innovation in companies has become even more important as of 2020. This is because the Transformation Index, according to Dell Technologies, pointed out that as from that same year approximately 87.5% of the companies installed in Brazil invested in some way in technological solutions.
It is worth noting that the percentage was well above the average, which is 80%. In other words, currently, investing in digital transformation is no longer a competitive differential and has become a key point for market survival.
However, many people still have many questions about the subject. With that in mind, we have prepared this complete guide for you to get up to speed on the topic. Below, understand what digital transformation is, what its main technologies are, and what benefits they bring to companies.
What is digital transformation after all?
First, it is necessary to understand the concept well. We can define it as the integration between the physical and the digital world, in order to integrate new technologies. Therefore, it is the process in which companies start using digital technologies to improve their performance, achieve better results, and expand their reach.
When we stop to think about how connected we are in everyday life, it is not difficult to understand why technology has also invaded the business and industrial sector.
Unlike what many imagine, this is not a mere effort by the Information Technology sector or just including technological solutions in the organization’s processes, it is a deep and significant change in the structure of companies and institutions.
Thus, the real drivers of digital transformation are not innovations, but instead people, new human mental and behavioral models, and a change in business culture. Therefore, the implementation process must be the result of a strategic decision by the organization and be directly related to its goals.
Which are its pillars?
When we talk about the pillars of digital transformation, we mean the elements that must be taken into account for its implementation to be a success. Below, get to know the details of each of them.
The first step is to establish a vision and then a strategy to achieve it. As this is quite challenging, it is essential to have buy-in from across the company to prioritize resources and identify any processes that need to be changed along the way.
Understanding the customer
The customer is always at the center of any business and it would be no different when implementing digital transformation. Therefore, it is necessary to think about providing the best customer experience. As the public is increasingly connected, the ideal is to think about virtual environments and digital interactions.
Technological advancement has delivered a number of solutions to companies, but that does not mean you should implement all of them. It is necessary to take into account the vision, goals, needs, resources, and strategies of each business. In this way, you will be able to discover which innovations are most appropriate for your case.
Without a skilled team, the company will have difficulties when it comes to adopting the digital transformation. In addition to seeking to hire qualified talent, it is interesting to offer training courses and capacity building for the team.
As we have already mentioned, digital transformation is a deep and significant change. In addition, it does not happen overnight. It can only be achieved by changing the organizational culture, i.e. it involves all the individuals who comprise the company – starting with the CEO.
What are the main areas of technology driving digital transformation?
The technology sector is highly dynamic, that is: every day solutions emerge to enhance the most diverse processes of an institution. Below, check out which are the essential solutions that will help you in this process.
This is the large set of data that is generated and stored daily all over the world. The big challenge for organizations is to use this information for their strategic planning, assisting in decision making, in order to find more assertive measures and decisions.
This refers to the analysis of the data stored in Big Data. This tool is responsible for exploring, transforming, and analyzing information. This enables the identification of patterns and trends to provide powerful insights for managers.
It is the storage and distribution of the database, software, and other services on shared servers that are interconnected via the internet. Thus, systems management becomes much more agile and efficient.
Through automation, it is possible to perform tasks by means of automatically controlled machines. Thus, there is more productivity in processes, in addition to reducing failures and waste. Processes that were previously performed in an operational and repetitive way are integrated with technologies and systems and data integration, becoming an important factor in the digital transformation of companies of all sizes and segments, generating a better market performance.
Artificial Intelligence (AI)
There is no way to talk about digital transformation without discussing Artificial Intelligence. It is the collection of multiple technologies and machines that mimic human ability to perform tasks and processes based on the information they collect. From chatbots to solve quick customer problems to super-powerful data analysis in any format, AI is not meant to replace humans, but rather, to help and further enhance our capabilities. In the enterprise sector, it is indispensable for increasing productivity, reducing failures, and significantly improving business results.
What are the benefits of such transformation?
Implementing the technologies according to the objectives and needs of a company brings a series of advantages. The main ones include:
Greater efficiency in production processes – technological solutions are able to increase the productivity of processes without the need to increase the workload of employees;
Increased safety – the organization that invests in technology can drastically reduce the risk of accidents and work errors;
Cost reduction – one of the great benefits is the reduction of total expenses, especially in relation to maintenance. After all, you can identify bottlenecks, failures, and even detect in advance the need for maintenance of some equipment, allowing a scheduled stop;
Decreased electric energy bill – one of the big costs of companies, especially industries, is with electric energy. It is reduced considerably with the use of the right technologies;
Sustainability – although they may seem like opposite fields, technology is closely linked to environmental conservation and sustainability, as it helps to reduce waste, save natural resources, and promote other actions in this direction;
Assertiveness in decision making – as there is efficient collection, storage, distribution, and analysis of data, managers have the perfect conditions to make the best strategic decisions for the company.
Therefore, digital transformation is urgent, since the survival of a company in the market depends on it. However, for this, it is essential that your business relies on a qualified and experienced company to provide the best solutions to meet your needs and desires.