As businesses and markets evolve, so too must their processes, cultures, and customer experiences be adapted to take advantage of digital technologies. The term “digital transformation” describes this process of reinvention for modern business.
It goes beyond the purview of departments like marketing, sales, and customer support. Instead, the way you perceive and interact with customers is ground zero for digital change. As we make the transition from paper to digital tools like spreadsheets and applications, we have an opportunity to rethink the ways in which we conduct business and interact with clients.
There is no need for a new business to spend time and energy laying the groundwork for a future transformation of its business operations. Your company may be prepared for the future from the start. Sticky notes and handwritten ledgers aren’t enough to support a successful firm in the 21st century. If you approach your work digitally from the start, you’ll have a leg up on the competition.
What is Digital Transformation – Understanding the Possibilities
Realizing the full potential of your technology is essential for any successful digital transition. The question, “How much faster can we do the same thing?” is not the right one. To do this, one must ponder, “What is our technology really capable of, and how can we adapt our business and processes to make the most of technology investments?”
People used to go to video rental establishments, browse the tapes and discs on the shelves, and pick one at random. Now, digital material libraries can be accessed on mobile devices, complete with personalized suggestions, ratings, and reviews.
The traditional video rental industry was clearly disrupted when customers could just sign up for a streaming service and watch their favorite shows and movies on their televisions, laptops, and mobile devices. Netflix’s decision to embrace streaming has led to the exploration of other uses for current technological capabilities. As a result, new developments materialized, such as an AI-powered content recommendation engine. That’s what we call getting the most out of your computer network!
Digitalization is Using Digital Data to Simplify How You Work
Digitalization refers to the use of digital information to streamline and improve traditional processes. The key word in that definition is “established”: Adapting your business model or starting a brand new company are not what digitalization is about. It’s about keeping up the good work, only now doing it more quickly and efficiently than before because your information isn’t locked away in some antiquated archive.
Consider the role of customer service in a store, in the field, or over the phone. Because of digitalization, consumer information can now be swiftly and easily retrieved from databases, completely revolutionizing the service industry. While essential customer service principles remained the same, the time it took to respond to a question, find the appropriate information, and provide a solution shrank significantly as computers and mobile devices replaced paper ledgers.
People’s ideas for applying business technology in novel ways, beyond simply doing the same tasks more quickly, began to emerge as digital technology progressed. At this point, the concept of digital transformation was born. Because of technological advancements, previously impossible tasks might now be completed in previously unimagined ways.
Every Encounter With a Consumer Becomes More Valuable Thanks to Digital Transformation
The rise of new types of enterprises is one result of the widespread adoption of digital technologies, which are altering traditional business practices. Companies are reviewing their processes, from internal systems to online and offline interactions with customers, as part of their digital transformation efforts.
They are pondering the broad picture, wondering things like, “Can we change our processes in a way that will enable better decision-making, game-changing efficiencies, or a better customer experience with more personalization?”
Now that we’ve fully entered the digital age, businesses of all stripes are coming up with innovative ways to use technology to their advantage. A fantastic illustration is Netflix. It was once a mail-order service that threatened traditional video stores.
The advent of digital technology, however, allowed for widespread live video streaming. Netflix now competes for head-on with broadcast and cable TV networks as well as production studios by providing an ever-expanding catalog of on-demand content at rock-bottom costs.
Because of technological advancements, Netflix is now able to not only transmit videos straight to users, but also to collect and analyze data about their watching habits and preferences in unprecedented detail.
From the layout of its user interface to the production of its original series and feature films in its own studios, the company bases its decisions on the information gathered from its subscribers. That’s an example of digital transformation in action: using current tech to guide operational decisions.
If you’re interested in learning more about the latest developments in technology, be sure to visit the links below. We’ve provided detailed information on the most recent breakthroughs in the field, so you can stay informed and ahead of the curve.
- What Is Cloud Computing? What Does a Cloud Computing System Look Like?
- The Power of Wearable Technology: Enhancing Health, Fitness, and Productivity
Examples of the Digital Transformation
Carrier, a maker of HVAC and security systems, is always on the lookout for innovative ways to automate the management of buildings. According to Carrier’s Chief Digital Officer Bobby George, who oversaw the development of the system while it was in pilot mode and ran in Amazon Web Services, the company’s latest product is Abound, a software as a service platform that aggregates data about indoor air quality and occupancy from building systems and sensors and transforms it into insights.
According to George, “abstracting all of that data” from preexisting building management systems and assisting with making sense of it is where the real value lies. He thinks customers will fork out cash to utilize it, giving Carrier a shot in the arm financially.
Sometimes the key to successful digital transformation is as simple as collecting the relevant business insights and turning them into doable steps. Digital marketing director Kelly McGee says that when sub sandwich franchise Jersey Mike’s wanted to know how customers were interacting with its mobile app, it used analytics to segment data based on loyalty program members and those who had not yet signed up for the program.
According to McGee, who credits software from Amplitude for providing the analytics insights, the marketing team targeted each cohort with personalized push notifications, resulting in a 43% increase in loyalty members claiming rewards prizes and a 38% bump in conversions to its loyalty reward program, doubling online sales.
To determine which clients are most valuable over time, we may track promotional initiatives, as McGee puts it. Going forward, “the main focus is delivering personalized content to the right person via the right device at the right time.”
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