The phrase “digital transformation” has been used frequently over the past few years. Digital transformation is widely misunderstood, as with many other terminology and concepts that have entered the world of enterprise IT.
Digitization and digitalization, two terms that are related to digital transformation, are frequently mixed. Digitization is the simplest of these processes that can turn information from analog or manual form into digital mode by turning handwritten records into computerized records.
Digitalization uses digital capabilities and technology to perform many of the tasks you already do, but in fresh and more effective ways that lead to greater results. Digital transformation is centered on digitalization.
Moreover, the ability to reinvent how you leverage your technology, people, and processes to advance your organization in new ways is made feasible by digital transformation. But what exactly does the term “digital transformation” mean?
What crucial elements does it contain, and how does it affect the business? Discover the answers to these questions & the advantages of applying digital transformation concepts to your business by having a read.
What is Digital Transformation?
According to Deloitte, “digital transformation” is the process through which a business transforms into a digital enterprise or one that uses technology to improve various aspects of business models.
Your business should evolve along with technology. At this stage, deciding how to convert an enterprise is more crucial than choosing to alter it. The term “digital transformation” now refers to moving every part of the business—including the supply chain, ERP, operations, customer service, and more—from manual & analog to digital.
By connecting people, places, and things, digital transformation essentially aids organizations and other entities in producing better results.
Each business’s motivation for becoming digital is different. Others may be motivated by shifting regulatory standards, while others may be motivated by growing competition pressure or expansion potential.
Whatever the motivation for a company’s decision to go down this route, the result can be superior products, services, and interactions that meet or surpass client expectations. Increased productivity and other commercial advantages can increase profitability and foster innovation.
Three Key Elements of Digital Transformation:
The term “digital transformation” encompasses much more than just integrating new technology. It requires a calculated strategy that takes into account three essential factors.
1. Physical
Digital transformation is physical in that it entails using technology to move a company’s operations away from manual processes and toward digital ones.
The solution might not be wholly technological if firms’ ultimate goal with digital transformation is to cut expenses and operating time. Sometimes all a leader needs to formalize a more structured approach is to assess their current procedures. Businesses can save a significant amount of time and money by streamlining or optimizing the process itself.
Examples of physical transformation include the change from paper-based recordkeeping to digital data collecting, the application of robots, AI, and machine learning, and the installation of data sensors that communicate information.
Typically, logistics businesses use various communication methods, including email, phone calls & text messages, which results in fragmented communication, a lack of connection, and imprecise information between managers, drivers, and clients.
Additionally, tracking and managing orders are done by hand. To check on the order status, the manager must ring the driver every hour or wait until the end of the day. Due to these challenges, managers cannot have real-time end-to-end visibility into the delivery process, which leads to inefficient management.
To enhance operational procedures, businesses should research transportation management software and automatically generate the best delivery routes.
2. Cognitive
Digital transformation is cognitive & enabling complex data analysis where machines are performing advanced analysis that resembles thinking.
Digitalization, including AI and machine learning, has enabled them. The need for expert-level knowledge workers is being driven by these capabilities, which are redefining the responsibilities of data scientists and analysts.
Businesses must pick the best solution for a successful digital transformation after developing a consistent approach and linking everyone in the organization. The frequent error that many organizations make during the digital transformation process is having a hurried mentality and wanting to deploy the system right away while the business is still not data-ready.
Indeed, businesses need to check data such as orders, customers, drivers, truckloads & more. Are there any items still missing? Are they being kept as hard copies or digital copies? Are they organized logically and updated frequently? Then, for simple data entry and maintenance, those data must be consolidated and saved on an on-premises or cloud server.
A business software system must guarantee these three things:
- SLA, stable or seamless high uptime, and round-the-clock customer support
- Intelligent enough to be automatic, requiring the proper and necessary features following the needs and business operations.
- A few common standards, such as security, system decentralization, team management, integration capabilities, statistical reporting, SLA & customer support are included in the category of being fit for business.
3. Cultural
4 of the 5 traits of successful digital transformation firms, including leadership policy, capacity building, employee engagement, corporate communication, and technological update, are attributed to the human aspect, according to McKinsey.
Indeed, the issue of digital transformation cannot be resolved by technology alone. Businesses must embrace the human element to undergo true transformation. Because it involves people who are accustomed to acting and responding in particular ways in their surroundings, digital change is cultural. In the digital age, people collaborate with “smart” machines.
The roles of employees adapt to new technologically enabled procedures and capacities. Making sure that all are aware of the importance of transformation and prepared to implement the change contributes to building a solid foundation for success.
Each employee in a business must first establish connections with one another and with change. Employee participation, leadership, and improvement suggestions are all made possible by an open culture in the workplace. Additionally, companies must focus more on the demands of their customers. Technology will develop in response to people’s various requirements.
How does Oracle help in digital transformation?
Today, for organizations to succeed, digital transformation is not only a trend but also a requirement. However, Digital transformation is a protracted and challenging process to change, affecting everything from business processes to employee mindset.
Businesses should concentrate on the three components mentioned above: procedures, people, and systems, for a successful digital transformation. Oracle transformed its internal operations by putting its experience in cloud technology and digital transformation to work.
Oracle evolved to become an end-to-end cloud provider and end-to-end cloud enterprise by integrating Oracle Cloud across the entire organization. The most crucial thing to keep in mind is that, in this endeavor of digital transformation, the power of digital transformation comes from finding your use cases and then selecting the partners, strategy, and technology that can transition those use cases into seamless, interconnected journeys that can advance your organization.
Ready to transform your business? Go digital with Doyensys now!
