The definition of digital transformation.
Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation.
It transcends traditional roles like sales, marketing, and customer service. Instead, digital transformation begins and ends with how you think about, and engage with, customers. As we move from paper to spreadsheets to smart applications for managing our business, we have the chance to reimagine how we do business — how we engage our customers — with digital technology on our side.
For small businesses just getting started, there’s no need to set up your business processes and transform them later. You can future-proof your organisation from the word go. Building a 21st-century business on stickies and handwritten ledgers just isn’t sustainable. Thinking, planning, and building digitally sets you up to be agile, flexible, and ready to grow.
As they embark on digital transformation, many companies are taking a step back to ask whether they are really doing the right things. Read on for answers.
Digitalisation is using digital data to simplify how you work.
The process of using digitised information to make established ways of working simpler and more efficient is called digitalisation. Note the word established in that definition: Digitalisation isn’t about changing how you do business, or creating new types of businesses. It’s about keeping on keeping on, but faster and better now that your data is instantly accessible and not trapped in a file cabinet somewhere in a dusty archive.
Think of customer service, whether in retail, field ops, or a call center. Digitalisation changed service forever by making customer records easily and quickly retrievable via computer. The basic methodology of customer service didn’t change, but the process of fielding an inquiry, looking up the relevant data, and offering a resolution became much more efficient when searching paper ledgers was replaced by entering a few keystrokes on a computer screen or mobile device.
As digital technology evolved, people started generating ideas for using business technology in new ways, and not just to do the old things faster. This is when the idea of digital transformation began to take shape. With new technologies, new things — and new ways of doing them — were suddenly possible.