Within just one decade, a new breed of digital businesses has emerged. Companies like AirBnB, Spotify and Uber are successfully engaging their customers while disrupting the corporate world with their business model.

As technology is evolving and the world is becoming more connected, the impact of digitalization has become a pressing issue spanning all industries. Digitalization is causing large-scale transformations for various aspects of businesses, uncovering countless new opportunities and responding to major challenges. For most of the industries, digital transformation is driven by growth opportunities, increased competitive pressure and new regulatory standards.

As business leaders are grappling with the implications of digital transformation, it is important to note that the entire process requires profound changes.

These changes go beyond merely buying expensive latest technologies. Rather, organizations shall search for new, flexible business and operating models and revamp the way they attract digital talent.

The Ins of Digital Transformation

Here are the top recommendations what industry leaders need to do for their digital transformation:

Develop and launch digital business models

  • To what level have you improved your strategies?
  • Are you looking to build, partner and accelerate strategic choices?
  • Is your process of corporate development cycle agile?
  • Is your decision of digital transformation backed by strong analytics?

Set up a successful corporate venturing business

  • Do you feel safe and secure with digital disruption?
  • Does digitalization scale up your existing business model?
  • Does it bring innovation to your existing model?

Leverage data

  • How much revenue do you gain from new digital sources?
  • Is your company’s growth rate higher compared to your digital competitors?
  • Does your organization perform data analytics, fraud analytics and compliance?

Invest in security

  • Does your industry prioritize investment in security?
  • Have you increased your security investment over the past few years?
  • How do you define the worst case security breach within your organization?

Digital traction metrics

  • Do you have the right behavioral KPIs that measure the traction of your digital business models?
  • Do you track metrics in real-time?

A Framework for Digital Business Transformation

New digital solutions bring endless opportunities to improve business performance. For digital transformation, companies need a framework to develop a clear and working digital vision and to develop new business models according to available opportunities.

Digital transformation begins with customers, and then covering other areas, such digitizing products, services, and operations.

Customers are the most important stakeholder to any business, small or big. To serve customers satisfactorily, it is important to understand them and their behavior.

Using CRM, companies now can easily identify the products customers have purchased in the past. They can perform better analysis through the Internet.

This is called tracking digital footprints of your customers. It also helps accumulate information around processes and devices within the organization. Organizations can use these insights obtained through digital technology for digital marketing. To stay ahead of the competition, organizations have to engage with customers using digital marketing tools and provide product information on the Internet. These tools also help personalize the customer experience with a goal to boost customer engagement and loyalty.

Digitizing Products and Services

Organizations today not only have to sell products; they need to sell customer experience. Products today consume and generate data through digital technologies. The level of intelligence provided by these tools help monitor services proactively offered.

As companies are implementing improved ways to understand the expectations of their customers for products and services, these insights help them customize customer experience.

Automation, globally sourcing, and standardization processes make organizations more agile, responsible and profitable with changing customer demands.

All in all, digital technologies help companies provide upgraded services with transparent pricing.

Digitizing Operations

Advanced digital technology helps improve business processes in many different manners. For instance, big data analytics enables smooth operations of in-bound logistics by tracking product movements.

Similarly, the cloud technology helps create uniform business processing platforms that are accessible anytime, anywhere and on any device.

How Businesses Can Adapt To Digitalization

There are many challenges that businesses need to understand. These include factors like the pace of changing customers’ expectations, workflow transformation, and outdated technology – to name just a few.

Further, mobile devices, tech wearables and the Internet of Things are just a few fractions of technologies that are disrupting industries worldwide. The way consumers are now connecting with companies is continuously changing and organizations need to be prepared for it.

Becoming a digital leader requires more profound changes than only investing in the latest technologies. Companies will have to search for digital business models, revamp how to attract digital talent, and consider a fresh tool to measure success.

Customer Experience

Customers are the center of digital transformation. By improving customers' experiences, you can reach the top. Digital transition efforts depend on digital technology to use these customer insights to deliver customer-centric personalized services. This helps businesses to better engage customers and gain more revenue.

Internal Processes

Digital transformation boosts the agility and operational efficiency of an organization. Technologies like AI, ERP, and advanced data analytics help improve internal business processes and make digital transformation possible.

Automatic data processing tools freeing employees to focus on more strategic tasks that increase revenue. Further, advanced dashboards allow employees better access to insights and help them improve decision-making skills.

Business Models

Companies that fall behind technology fail to evolve their risk extinction. The models aligning with the latest modules of the digital transformation framework can create new digital models, offerings, and revenue to evolve the market.

The best example of a business model is Netflix, which the company uses to main DVDs, and now it is the top digital streaming company in the world. Businesses need to create new models that evolve with time. Look for IT professionals to help with the business model.

Future of Digital Transformation

It is just a start for digital transformation, near future the digital innovations and initiatives will reach into new phases. Gartner believes that by 2021, the physical, financial, and healthcare worlds will become 20% more digitized than the present situation.

According to Forrester’s 2017 predictions, the digital transformation budgets will increase over the next decade and many firms will invest billions in it. According to predictions by 2020 companies invest more than $500 billion on cloud services.

Also, in future Blockchain and cryptocurrencies like Bitcoins will be the new payment method for retailers. Technologies like Edge, Cloud, Artificial Intelligence, and more are evolving day by day. Clearly, businesses need to accept the new reality of digital transformation to stay in the race.

Summary

If you want growth and expansion for your business, you'll need to make sure your company is digitally mature. Digitalization is a must to earn profit and to increase revenue. Adapt all digital solutions that are needed for your business.

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