Digital transformation is no longer an unfamiliar term to us. We can easily catch this term in our daily newsfeed, panel discussion, article, or breaking news with a typical message that this is a necessary technology in the 4.0 era. But mostly, this information might not be clear to us about what digital transformation is. We probably thought that this transformation is an activity when everything is uploaded onto the internet, or ordering a pizza without human interaction but through clicks on the phone. And is this worth it or just a nice to have technology?
To have a closer look, let’s find out a fundamental element that formed the digital transformation term, digitization.
“ Digitization is the process of changing from analog to digital form ” -Gartner’s IT Glossar
Digitization is the foundation of digital transformation and the connection between the physical world and software.It means taking something that's not digital and making it digital.
For example, you can take a picture of a person and make it into a digital picture on your computer. You can also take a book and make it into a digital book on your computer. Digitization is important because it makes things easier for you to use.
Other examples of digitization in enterprises today, many businesses have been converting from handwritten text or paper documents into digital form through several office software on the computer, scanning documents into PDF saved on the computer, hard drive, CD, DVD, or Blu-ray.
Digitization plays a crucial part in data processing, storage, and transmission. There is no longer a situation when companies have to take large areas for documents storage. All kinds of formats are now carried in one system with the same efficiency and accessibility.
“ Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business”-Gartner’s IT Glossary
Digitalization refers to the process of applying digitized information to make established working methods easier and more efficient. Simply put, digitalization is making your digitized information work for you.
To execute this process, we need the help of digital technologies and data to create a workflow that improves your business productivity, revenue and reduces business operating costs.
For example, to share your documents with company colleagues, instead of using a USB or hard disk drive as a third party way to transfer your file, now with the appearance of the internet, just a click, we can quickly send them.
Digitalization marks a shift to an organization, reshaping how the value is formed and business conducted. And when your workspace is digitalized, it turns into digital culture and technology can be integrated into every business activity such as customer experience, business analysis, supply chain management, marketing,... we can call it the digital transformation.
Digital transformation is a broader term for digitalization. And it will look different for particular companies, so it is hard to define exactly what digital transformation is for each business implement method.
In general, we understand digital information is to integrate technologies into all areas of business. Every aspect and activity in your company is fully leveraged by digital technologies. For instance, instead of spending time to analyze your customer data, but now with some tool like Google Analytics, you won’t take much time for this period. Or more commonly, some companies have applied automatic timekeeping systems using many technologies such as fingerprint, face recognition, ...
Therefore, there are absolutely specific changes in your business operation and the method your company values delivering to customers.
These cultural changes will result in several challenges for businesses to adapt, experience, and get used to. And it takes time or cost for the transformation.
POSSIBILITY OF DIGITAL TRANSFORMATION
Digital transformation might be different in particular companies. Each business needs to identify and understand which technology has the potential to apply. A suitable and prudent strategy will attract more customer interaction, increase profit rise and get the most out of your company.
For instance, Netflix got into the digital world many years ago. They started to enable video renting via email and disrupted the traditional video renting business then. These days, we can see that Netflix has transformed into digital thanks to OTT technology, which enables customers to enjoy their huge video library just in one website or application at an affordable price.
Read more: What is OTT? And why OTT box makes people gradually cut the cord.
From this case of Netflix, we can assume that digital transformation has changed the way businesses approach their customers. In the past, we had fewer ways to attract customers than waiting for them to come to find or call us. With digital transformation, businesses have a competitive opportunity to take a closer step to customers through social media or some technology and tools such as email, online advertising, website, or call center for contact.
There will be more possibilities for digital transformation in every aspect of a business process, not just stopping at digital marketing, customer service as mentioned above as IT is the firm that has never stopped developing, there will be more and more modern technology invented that business can take advantage of. For example, recently we have witnessed lots of remarkable IT trends such as Blockchain, Artificial Intelligence, Robotic Process Automated, Cloud Computing, Face Recognition,... And the unstoppable growth of IT will surely create more challenges for companies to keep up with the digital transformation race to gain competitiveness.
However, entering the race late doesn't mean we won’t get any competitiveness. Digital transformation is a survival issue for every business. We can realize from the post-pandemic, Covid 19, thousands of businesses broke down as they didn’t have a strategy to operate and approach customers. Meanwhile, many companies grow rapidly due to this phase, for example, E-Commerce.
Digital transformation might be a hard decision for us to implement for the company and its benefit might be unclear to define. But for the long-term, digital transformation is wise for businesses on the way to optimizing business processes, gaining more competitiveness and efficiency.
With an experienced and skillful team working in an IT firm, our software and technology company, ITC Group, can provide innovative and suitable digital transformation solutions for your business with all up-to-date technology. We have collaborated with many clients for a successful transformation, and we are willing to contribute our best effort to let your business enter the digital world. Let’s Contact us and get a free consultation.