Since digital transformation looks different to each organization, it’s difficult to give a clear definition that applies to everyone. In general, digital transformation is the introduction of modern technologies into the business processes of an enterprise. This approach involves not only the installation of modern hardware or software, but also fundamental changes in management approaches, corporate culture, and external communications. As a result, the productivity of each employee and the level of customer satisfaction increase, and the company gains a reputation for being progressive and modern.
Digital transformation can be defined as the strategic transformation of a business, where customer preferences and behaviors determine enterprise technology solutions. “Is it an end-to-end enterprise-wide transformation that affects all parts of the organization?” – says Alexander Bushek, Digital transformation Evangelist, Senior Director, Analyst at Gartner.
“Every digital transformation will start and end with the customer, and I see it in the head of every CEO I talk to,” explains Marc Benioff, the chairman and CEO of Salesforce.
Digital transformation is associated not only with the renewal of technologies and business processes within the company, but primarily with a change in business strategy. According to Marc Benioff, the transformation takes place at a time when the company can re-evaluate the changing market, the needs of its customers and find new directions for development, taking into account the ongoing changes.
“Digital transformation is primarily a change in current business practices in the field of decision-making, which are either made by a person based on the analysis of “hard” data, or are left to the systems, excluding a person from the process, he explains. — Another area of digital transformation is following the customer as they digitalize their lifestyle.”
For example, with the development of the Internet of Things and voice assistants, the role of the buyer will flow to the machines — “Siri” or the refrigerator will decide what to buy, considering the preferences of the owner. A person, in the future, will begin to give more and more authority to technology first on minor issues, and with the growth of trust, and on more significant ones: from choosing a specific brand of milk, to choosing an insurance medical plan for the whole family.
Digital transformation in this sense is also about understanding and responding to the needs of new customers — “digital algorithms”. Another significant trend in customer behavior is a request for personalization, product offers for specific needs, often not yet formed, based on data analytics enriched by different areas of consumption, integration into “ecosystems”, the search for synergy in areas that until recently were considered unrelated, for example, banking services and food delivery.