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What is Digital Transformation? – Importance, Benefits, and More


The digital transformation uses digital skills to generate or modify existing business processes, culture, and client experiences to meet changing market and business needs. This realignment of business in the digital age is digital transformation.

It goes beyond traditional roles like sales, marketing and customer facility. Instead, digital transformation starts and ends by the mediums in which you think and interact with customers. So as we change from paper to spreadsheets and intelligent apps to run our business, we have the prospect of rethinking how we do business and interact with our customers with digital technology on our side.

How Important is Digital Transformation?

How Important is Digital Transformation_

While each digital transformation initiative has its own specific goals, the primary purpose of any digital transformation is to improve your current processes. Digital transformation is significant because companies need to evolve to remain competitive in their industry. If you don’t move forward, you stay behind.

A study by Bain & Company shows that “only 8% of global companies have been able to achieve their business objectives through their savings in digital technology.” One strategy that sets leaders apart is spending more on transforming their business rather than just running it.

Digital transformation is essential because it allows companies to adapt to ever-changing industries and continuously improve their operations.

3 Key Areas of Enterprise Digital Transformation

MIT Sloan Management Review highpoints three critical areas of digital transformation for businesses:

Customer Experience

Work to understand customers better, use technology to drive customer growth, and create more customer touchpoints

Operational Procedures

Improve internal processes by leveraging digitization and automation, empowering employees with digital tools, and gathering data to monitor presentations and make more strategic business results

Business Models

Transform the business by augmenting physical offerings with digital tools and services, introducing digital products, and leveraging technology to provide global shared services

The Benefits of Digital Transformation

Though the ROI of digital transformation depends on various factors, the right technology can significantly develop how your business works and how your clients interact.

Increase Productivity While Reducing Labor Costs

Using technology to work more proficiently is one of the most effective ways to transform your business. For example, for businesses, the time and money spent training new employees and upgrading digital assets can quickly spiral out of control. However, you can reduce costs and increase productivity with the right tools.

Improve the Customer Experience

Tech-savvy customers want a great experience across multiple touchpoints mobile apps, social media, email, live chat, and more. Digital transformations are driving improvements in the customer experience.

Drive Innovation to Keep you Ahead of your Competition

Your competitors are considering digital transformation, whether you are or not. Choosing not to embrace digital change essentially means that you don’t mind being left behind. Enable investments in your organization’s future

Most Important Aspects of Digital Transformation

For a successful transformation, maintain momentum on any initiative that brings you closer to your ultimate business goals. Do this by continuously addressing the most important drivers of digital transformation digital twin, data protection, culture, augmented intelligence and digital product management.

According to Gartner, CIOs want to focus on these five areas to enable successful digital transformations in their organizations.

1. Digital Twins

Gartner describes a digital like as “a digital image of a real-world object or system. A digital twin implementation is an encapsulated software object or model that mirrors a single physical entity, process, organization, person, or other abstraction.

Digital twins support digital transformation by facilitating experimentation and also collecting data that supports more informed business decisions.

2. Confidentiality

If you can’t manage secrecy, your digital transformation is lost. As more and more digital solutions become available, businesses tend to embrace trends that provide more convenience. However, Gartner’s research shows that many consumers and employees are unwilling to sacrifice security for comfort alone. Therefore, CIOs need to take privacy seriously. Employees and consumers will not support a transformation if they believe it infringes on their privacy or the security of their personal information.

3. Cultural

Resistance to change is a human instinct. If you ignore the cultural aspect of a digital transformation, you will come up against walls of resistance quite fast. In detail, 46% of CIOs say culture is their most significant barrier to change. Addressing the culture ensures you gain internal buy-in for your transformation initiative. You can use their speeches to drive your enterprise forward when you have change leaders clamouring to support your transformation.

4. Improved Intelligence

Augmented intelligence goes beyond artificial intelligence (AI) because it enables human-machine collaboration. AI’s data gathering and analysis abilities go far beyond that of a human worker. But augmented intelligence is not about replacing humans with machines: AI collects and presents data in ways humans can expand their knowledge.

5. Digital Product Management

Gartner explains digital product management as the shift in mindset from projects to products. These products should be designed to enhance the customer experience and delivered through digital channels. Digital product management is about deliberating your industry and developing products that serve it. For example, instead of waiting for the healthcare industry to adapt to Apple’s offerings, Apple created a watch that monitors a user’s health. CIOs who focus on these five key factors can stay ahead of their competition by constantly improving and growing their business.


Digital transformation is the deep transformation of activities, processes, skills and business and organizational models to strategically and prioritize thoroughly exploit the changes and opportunities presented by a combination of digital technologies and their accelerated impact on society, taking account of present and future changes.

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