The concept of digital transformation can be described as a process by which businesses make use of technology to optimize work and improve performance in order to achieve better results.
It refers to the technological progress of business digitalization, in the sense that it is a deep and significant evolution in the structure and way of working where technology plays a key role.
Technology has become the most powerful ally of business, transforming most physical and time-consuming processes into digital ones, faster and with less error margin.
It is an evolution in the way of doing business with a focus on customer experience, internal communication, and leveraging new technologies to elevate businesses.
All companies must have the ability to connect and satisfy their customers through the digital world, because companies must be where their customers are. This is why it is important to understand that digital transformation is not triggered by technology, but is about solving a problem or providing a new approach to the customer.
So the primary focus on the customer is what triggers the start of digital transformation, not the technology itself.
The 3 underpinnings of Digital Transformation
Digital transformation cannot be viewed in a simple way related only to software and technology implementation. It involves three fundamental underpinnings that support businesses in digital transformation:
Employees and customers
People are fundamental to digital transformation and its success. For this reason, this should be the first aspect to be taken into account in a digital transformation initiative.
The adjustment of processes is very important and tech progress cannot take place satisfactorily without taking into account human capital, which is one of a business's most valuable assets.
Furthermore, the role played by the customer has changed from a passive posture to a highly interactive one, which influences the positioning of a business in the market.
Currently the customer dominates the market and has a more dynamic relationship with companies and brands, which contributes significantly to their reputation, in the sense that it is already a normal behavior to look for evaluations from other consumers regarding some service or product.
Processes and technology
The optimization of internal processes is very important nowadays because the need to readjust the way of working requires more and more agility, innovation, and interactivity.
A successful process must combine the automation of the business work focused on a sustainable growth plan as part of the digital transformation of businesses.
Workplace
When it comes to the 'new' processes and technologies in a company going digital, these can change the physical and digital aspect of workplaces which means that the workplace experience will be changed and the processes for this new reality must be meticulously structured.
The smart workspace promotes a balance between physical and virtual company workspace that enables increased productivity and employee learning in the sense that it innovates the way people work.
It is important to highlight that digital transformation and digitalization are complementary. For the process of digital transformation to go as smoothly as possible, it is important to associate it with digitalization, since data can only be extracted if all documentation is in digital form.
So there is an indispensable relationship between the two, with digitalization as the process and digital transformation as the effect of that process!