The whole world is becoming increasingly reliant on digital technology. Does this means enterprises need to digitally transform in order to achieve sustainable growth?
Digital transformation is something that businesses have been talking about for a long time; and yet not a lot of businesses have actually undergone the process. However, in the last few years, the reliance organisations have on digital technology has boomed – mainly due to the COVID-19 pandemic. We reached out some IT support companies London businesses have relied on over the last few years to help them adapt to modern working practices (i.e. remote and hybrid working). The general consensus is that, eventually, all businesses will digitally transform. So, what are some top reasons for business to undergo it?
What are the Key Components of Digital Transformation?
There is sometimes some confusion around what true digital transformation looks like. A business that has adopted a few modern solutions like the cloud are not necessarily digitally transformed – especially if they are still using on-premise solutions. Digital transformation is about redefining how an organisation works. It can be roughly split into 3 main areas:
Perhaps the most important aspect of being a digitally transformed organisation is how one leverages data. Data is hugely important to many modern industries. For example, some of the companies we spoke to that provide IT support Financial Services companies rely on told us that modern financial organisations rely heavily on leveraging real-time data to inform their work. Digitally transformed organisations use real-time data to inform business decision-making – this allows they to be more agile, more reactive to change, and more proactive for their customers. They also digitize historical data so that it can be integrated with new systems, and analysed to see what practices might be preserved.
Just as information needs to be converted to digital formats when an organisation transforms themselves, processes also need to be transformed. This gives organisations the opportunity to streamlined processes, gives workers flexible access to tools and resources, and to generate real-time incoming data points that helps businesses stay true to their goals.
As well as digitizing their data, and digitalizing their processes, businesses need to redefine the culture of their organisation, so that everyone in the business is committed to adopting the new practices, processes and tools. There needs to be complete commitment to the new way of doing things, at every level of the business. It is usually up to the higher ups to expound on the changes that will be made to the organisation.
Why Should Enterprises Consider Digital Transformation?
So, why is digital transformation considered to be the future for businesses? Below are five key reasons why all types of enterprises should be considering it:
- New Markets – Digital transformation can help businesses open new revenue streams by tapping into new markets. This is because digital channels can help businesses connect with wider markets from around the world.
- Demand for On-Demand – With the increase in digital channels, customers are able to access services much more quickly than they used to. This now means that customers are accustomed to this speed, and are now expecting on-demand services. Business that can provide this will do better in their markets.
- Security and Agility – Businesses are increasingly looking for ways to become more agile. Some of the companies we spoke to have provided IT support for Healthcare organisations, and they described how these companies are expanding into things like telehealth, which requires them to be able to operate at the edge of their network, in order to meet their clients closer to their homes. This in turn means more robust security is also required. With digital transformation, businesses can achieve that agility whilst increasing their security.
- Automation – With customers wanting more on-demand services, businesses need to be operating at maximum efficiency. One of the solutions that digital transformation makes easier to implement, and which can help businesses operate more efficiently, is automation.