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What is Digital Transformation?

Digital Transformation

Since our progression into the Digital Age in the mid-20th century, technology has continued to develop and evolve, changing not only how we live, play and work, but how we conduct business as a whole. In such a rapidly adapting climate, businesses big and small have been forced to undergo a digital transformation to meet market requirements and deliver a higher value service to customers. But what is digital transformation? And how can it’s performance be measured?

Digital transformation involves an organisation implementing technology throughout their business to optimise efficiency and success, marking a cultural shift in the way it engages with its customers as they embrace a culture of innovation. Company processes are streamlined by translating data into a digital format, such as storing client information digitally, and digitalising business processes and objectives, by training employees in new software and technology. Such technologies may include cloud computing, artificial intelligence, machine learning, data analytics, and the Internet of Things. Implementing new technology to correct inefficiencies and optimise business processes can empower businesses to scale up and achieve new levels of success, especially in collecting valuable client data. However, adopting new technologies does not guarantee a company’s growth. For an organisation to embrace digital transformation, they must become data-driven; utilising the insights from the data they collect to inform decision making and future actions taken within the company.

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While embarking on a digital transformation journey, it’s essential that an evaluation of results is undertaken. Measuring revenue and growth retention, customer and employee satisfaction, and KPIs can be a valuable measure of progress during a digital transformation. For example, an organisation may implement a CRM system and benefit from an improved customer experience and satisfaction rate, suggesting that they have made progress in their digital transformation journey. In the future, we will be writing blog articles chronicling successful SIGMA case studies that may broaden your understanding of successful digital transformations.

For an organisation to execute a successful digital transformation, there must be an understanding that digital transformation is a continuous process for organisations, who must continue to evaluate performance and seek new technologies that could add value to the company in order to stay on top of technology trends and stay ahead of competition. By embracing adapting technologies and innovation, organisations can continue to reach new heights and exceed expectations of elevation.

 

11 October 2023