Digital transformation in the business world refers to the efforts of companies to keep up with changing environments spurred on by customer demand and technology. Because digital tools and technology are constantly evolving and affecting how people interact with one another, this in turn changes the way in which we conduct business. How you transform your core business processes using digital technology will determine how you can achieve competitive advantage and gain differentiation in your market segment, says Techopedia. It's essentially the third component of how businesses embrace digital technology, following digital competence and digital usage. With an ability to bring on new elements of innovation and creativity, digital transformation goes beyond enhancing and supporting traditional strategies.
What Spurs Change?
On the quest to find true digital transformation, one must understand the drivers that affect this change, namely profitability, customer satisfaction, and increased speed-to-market. There's a general understand that CIOs should be the driving forces implementing this transformation for their businesses, but is this really happening? In reality, it doesn't seem to be that cut and dried. In fact, digital transformation has many motivations and is the responsibility of many people, from top executives to lower-level employees, says CMS Wire.
According to research presented by MediaPost, poor customer experiences caused an estimated $83 billion loss by U.S. companies every year due to defections and abandoned shopping carts. With so many options these days offered by cloud, mobile, Internet of Things, and others, it's easy to lose sight of quality of the data in favor or hyper personalization.
So the question remains: how can companies find true digital transformation with leadership from their CIOs?
Companies that can harness the power of true digital transformation will enjoy the fruits of their labor by being at the top of the heap in terms of competitive advantage and differentiation. That's what we're all striving for anyway, right? Here are some suggestions: