The changing consumer demands, continuous technological advancement, and growth of competitive businesses are challenging to entrepreneurs. Newer businesses have the advantage of innovative business models by applying new approaches to old model. As such, they are able to make money by finding their niche and beating out the competition. While more established businesses are faced with the challenge to adapt to these changes or risk being overrun. Prime examples of company’s failing to innovate are: Blockbuster Video, Toys R Us, Netscape, etc, etc. Adapt or die is the mantra!
To address such challenges, digitization of business processes and operations is now among the new technologies trends. Such an endeavor may include organizational and internal improvements to handling new business challenges such as new and better ways to interact with your customers, providing a better model for what your customer demands, improving the client experience or journey and lifecycle through your business. These act as a Digital Facelift to your business. One that consumers will definitely notice.
What is digital business transformation?
AgileElephant sees the digitalization of business as the transition from a traditional business approach to the adoption of existing and emerging social, mobile, and digital technologies. This adoption leads to the improvement and enhancement of business processes and operations. While Greg Verdino views digital transformation as a bridge between consumer demand and the product and services delivered by businesses.
Digital Transformation is when businesses use improved digital tools and methods for business operations and processes. The efficiency of fundamental business processes and the quality of service delivery to consumers are impacted by it. This also means that businesses grow from traditional operations and experimenting with relatively new technology.
New Technologies Trends in Digital Business Transformation
1. Data-Driven Decision Making
Businesses are also able to collate and better understand their business and target market through the use of data-driven decision making. With continuous improvements to Machine Learning and AI integration into common tools and devices, technologies such as data visualization and data science enable businesses to acquire real-time information and feedback on the performance of their business and their team as a whole. To take it to another level, embedded edge computing allows a team to provide real-time machine learning for adaptive decision making in a do or die environment.
The large amounts of data that are collected through devices and various technological tools that enable businesses to improve business strategies, provide better products and services, and make better business decisions overall. Going forward, there will be an increase in incorporating such data science and data-driven decision-making technologies in businesses and the products and services that they provide.
2. Mainstreaming Cloud Technologies
Businesses have been transitioning to cloud technologies for their various business processes, which are a more cost-efficient and accessible option for businesses. Businesses have been and will continue to explore various derivatives of cloud technologies, such as Hybrid, Private, Public, and Connected Cloud. Businesses would find that, depending on their needs, using a combination of cloud technologies to optimize and enhance their business processes is an option.
3. Enhanced Customer Experience
With tools such as business analytics, machine learning, data science, and AI, more in-depth information can be collected and used to improve overall customer experience. One of the major ways that businesses grow is through learning about their chosen market and target audience and aligning their business strategy to suit their consumer needs. With the developments in AI, ML, and data science, as well as their integration into the various digital platforms and devices out in the market, businesses are able to collect and process even better information. This ensures that they are provided with the right information to improve their businesses and the quality of products and services that they provide.
4. Data Security and Data Privacy Policies
The numerous reports of data breaches, hacks, private information sold without knowledge and approval of owners, and compromised digital data have led to data privacy policies becoming necessary in the incoming years. The GDPR is one of the most notable initiatives for data privacy to be established in recent years. Because of technology and communication, individuals are providing more and more personal and important information in the various digital tools and platforms that they have.
Businesses need to secure and protect the consumer information that they collect, process, and store. Data Privacy policies are established to protect consumer and user information online or in any digital platform. More such policies are expected to be drafted and put into action in the following years. Any breach or instance of misuse is a negative reflection of the business and impacts its reputation and operations.
Chatbots are great tools for engaging customers, but there are a lot of instances where they have become an annoyance. This shows that there is a lot of room to improve when it comes to chatbots. With technologies such as natural language processing (NLP) and sentiment analytics tools improving in leaps and bounds over the recent years, chatbots are continuing to grow and improve.
Chatbots are great for feedback, communication, and customer service. Improving such a tool will be an advantage for businesses with online and digital platforms. With more technologies incorporated into chatbots, businesses are sure to grow in favor of using these helpful tools.
Why we need digitalization of businesses?
Digital business transformation is a lengthy and costly endeavor for business, with its impact only felt after a long period of time. Why should businesses invest in digitization company processes and operations?
We are in a time where anyone and everyone can put up a business and carve out their niche in the global market. Businesses, especially long-established institutions or enterprises, need digital business transformation to ensure the survival and sustainability of their business. Businesses need to grow and adapt in order to compete with evergrowing and diversifying global businesses.
Technology drives society and the global market. (IDC) Worldwide Semiannual Digital Transformation Spending Guide, estimates that the global spending of technologies for digital transformations will hit around 2 Trillion USD by 2022. IDC also forecasts the continuous increase of DBT spending in the coming years and estimating a 16.7% annual growth rate between 2017 and 2022. And in order to continue and succeed in the global market, businesses need to learn and adapt technology into their business strategies. Failing to evolve with society and the times more often than not lead to stagnation and eventual loss, which is a situation that no business ever wants to be in.
How can businesses implement a digital transformation?
By contracting with a company that is knowledgable about your industry and the challenges that you face, you can find a partner that will provide a Digital Facelift for your company. Through these services, businesses address the demand for change and will still be able to work on the business. With the right strategy and tools, businesses get the best possible outcome possible and reap great rewards in the long run.
Investing time and resources in finding the best strategy and tools to implement for digital business transformation is necessary for success. This helps businesses be more cost efficient and cost effective when they undertake such an endeavor. There are many ways to go about this. Businesses mainly choose between applying change in-house, slowly and process by process, or employing third-party services to identify and implement the necessary changes.
Contributing writer Anastasia Stefanuk is a passionate writer and a marketing manager at Mobilunity. She is always aware of technology news and wants to share her experience to help tech startups and companies to be up-to-date.