Table of Contents
- General info about economic growth, especially the Digital Transformation trend
- What is digital transformation?
- Digital transformation drivers
- What’s the key difference between digitization, digitalization, and digital transformation?
- Digital transformation examples
- How to lead a digital transformation
- Magenest – One-stop solution
General info about economic growth, especially the Digital Transformation trend
The COVID-19 pandemic and the economic shutdown in advanced economies and other parts of the globe have disrupted billions of lives and are jeopardizing decades of development progress. In such a situation, businesses need to find new ways of running a business, which leads to a trend of leveraging technologies and digital transformation for business.
Technological advances have significantly improved operations and reduced business costs. Recently, for example, only a few technicians control the robot system can operate an entire factory and the innovative inventory system is able to supply the necessary parts in a short time to assemble. Advancements in the computer industry, coupled with advancements in telecommunications, have increased job opportunities and strengthen economic growth.
What is digital transformation?
Digital transformation is using new digital technologies (social media, mobile devices, analytics, or embedded devices) to enable major business improvements (such as enhanced spreads, customer experience, streamline operations or create new business models).
From this digital transformation definition, we can see that digital solutions may enable – in addition to efficiency via automation – new types of innovation and also creativity, rather than simply enhancing and supporting traditional methods.
Digital transformation drivers
The emergence of new technology and reengineered processes has created a ripple effect that is changing the workplace and how work gets done. Disruptors continue to introduce new products and services, as well as new industries, are being created seemingly overnight, creating a sense of urgency for organizations to transform or risk losing their competitive advantage.
According to the IDG State of Digital Business Transformation report, 44 percent of organizations have already started implementing a digital-first approach to business processes, operations, and customer engagement. Many factors contribute to the need for digital transformation within the organization. Below are three key reasons for digital transformation.
The Need to “Sink or Swim”
Given the pace of change brought about by advances in digital technology, organizations must succeed in the digital transformation to survive. Digital transformation not only improves outdated and inefficient processes, but it also boosts innovation by opening new opportunities for product and service offerings that were not available before. Big data, AI, and automation are examples of digital tools that help companies understand their industry, customers, and competitors better than ever before.
Today’s customers have come to expect 24/7 availability and personalized experiences that empower them to make the best purchase decisions. A recent study found that 80 percent of customers are more likely to make a purchase when brands offer personalized experiences.
Digital transformation is key to meeting customer expectations because the effective use of digital technology makes it possible to understand and improve the customer experience. Once everyone in the organization understands their role in improving the customer experience, they will be more likely to leverage digital tools to offer personalized experiences customers expect.
The Need for Digital Talent
Digital transformation is a must for organizations that want to attract and retain the best talent. To be successful, you’ll need to provide development opportunities through training and coaching that help employees adopt a digital mindset and improve their digital skills.
Research suggests that employees are already eager to obtain their digital knowledge. A report by PWC found that employees are willing to spend, on average, 15 hours every month sharpening their digital skillsets. When individuals possess the necessary skills to help them succeed in the digital world, they’re better equipped to give their best effort and achieve results.
What’s the key difference between digitization, digitalization, and digital transformation?
Digitization and Digitalization: What is the Difference?
The core is the argument that digitalization cannot happen without digitization. Digitalization is the transformation from analog to digital, while digitalization is the use of digital technologies and digitized data to influence how jobs are done, transform the way customers and companies engage, and create new (digital) revenue streams. Digitization refers to the internal optimization of processes (e.g., work automation, paper-less procedures) and results in cost reductions. Conversely, digitalization is a strategy or process that goes beyond the implementation of technology to imply a deeper, core change to the entire business model and the evolution of work.
Digitalization and Digital Transformation: What is the Difference?
Although business leaders often use digitalization as an overarching term for digital transformation, these terms are not quite the same. Digital transformation requires a much more widespread adoption of digital technologies and cultural change. Digital transformation is about people rather than digital technology. It requires organizational changes that are customer-centric, backed by leadership, driven by radical challenges to corporate culture, and the leveraging of technologies that empower and enable employees.
Digital transformation examples
Example of digital transformation in marketing
In terms of digital transformation examples, it is necessary to mention examples of digital transformation in marketing.
At a high level, the goal of digital transformation in marketing is to attract more customers while spending less money. More specifically, awesome digital marketing generates more quality leads and helps you get closer to all of your customers, whether they’re new to your brand or longtime loyalists.
The transition from analog to digital marketing materials helps these efforts in two main ways. Firstly, digital materials are generally cheaper to manufacture and distribute than analog media. In particular, email is much less expensive than print and mailing campaigns. Secondly, digital marketing opens the door to marketing automation, analytics tracking, and dialogue with customers in ways the same could never be.
Let’s have a look at Home Depot’s Retail Digital Transformation. Despite the fact that The Home Depot has been very successful, in late 2017 the company decided to adopt a more expansive digital transformation strategy. Their goal was to enhance the online shopping experience and provide customers with the highest quality products and best resources through a seamless process across all channels. Home Depot plans to invest $11 billion over three years to improve its in-store as well as an online shopping experience.
Examples of digital transformation in sales.
There’s a good reason that the traditional roles of marketing and sales are being redefined in the digital era. It’s all about the data.
The ability to collect large amounts of precise data on consumer behavior lets marketing and sales teams, in particular, approach their work in ways never before possible. Looking at consumers as individuals, and studying their behavior from the first touchpoint all the way through the buying journey, brings to light the natural bond between marketing and sales.
Cultivate that bond and miracles happen when these separate groups in history work together.
In 2012, toys and games company Hasbro noticed that its market share was declining. To increase sales, they created new data and digital strategies. They began to collect and use better customer data to create more successful targeted marketing campaigns. They made a big push into social media, focusing on parents buying toys and games. The digital data they collect helps the company to better understand and proactively deal with customers.
How to lead a digital transformation
It is necessary to have a complete understanding of the digital transformation strategy so you can apply it to your own business. These are 5 steps one entrepreneur should follow to lead a digital transformation.
Step 1. Prepare a climate for change
The first step in your digital transformation is determining why you’re doing it. Sit down with key employees to do a hard score assessment – assess each area of the business to see what’s working and what’s not.
Step 2. Create an action plan
The solution to your pain points doesn’t have to be tech-related. But as part of the digital transformation, you should investigate how better technology and data can help in each area of your business.
Create a specific action plan for acquiring and implementing the technological solution. The plan should include key milestones for progress and steps your business will need to take to transform itself to maximize the benefits of the technology or data. You also need to build in contingency planning in case a step doesn’t work out.
Step 3. Establish a change team
Getting the shopkeeper to start from above. Management must not only understand the action plan and the need for change but also take the lead in technology adoption.
Step 4. Engage and communicate
Create a communication plan to explain the change to your team, address employee concerns, and get feedback on problems quickly. For example, you can get regular progress updates at company meetings, in newsletters, or on a chart posted in the lunchroom.
Step 5. Sustain a changing culture
You can easily find yourself reverting back to your old ways if change doesn’t become the core of your entrepreneurial mentality. The aim is to promote a culture of constant innovation, quality improvement, and keeping up with the digital transformation trend.
Magenest – One-stop solution
Magenest is a business providing a one-stop solution to help your business in management and operation. The power of 4 platforms Magento, Odoo, Salesforce, and AWS are perfectly combined in a One-stop Solution – the only comprehensive and unique set of enterprise technology solutions in Vietnam. Magenest helps businesses solve issues such as sales management, resource management, building and maintaining customer relationships, and storing and analyzing data.
With the goal of customers’ benefits and sustainable development, Magenest accompanies businesses in the digital transformation process and helps their employees adapt to technological changes.
Magenest helps businesses analyze business challenges and assess growth potential when applying new technologies.
Magenest builds the best digital experiences for their users. Magenest has successfully implemented a lot of projects for businesses around the world and has acquired many professional certifications from technology partners.
With a transparent project management software system, customers can easily grasp progress and give feedback directly when needed.
To ensure a smooth-running system of customers, Maggenest provides operational documentation and organizes training activities for the company’s staff.