You may have heard the phrase “digital transformation” being bandied about recently and wondered what it meant and what it had to do with you – if anything. Well, it isn’t just a buzzword, it is a really important process and something that you need to stay on top of in order to keep your business up to date with the latest things that are happening in the world of technology. We have been offering independent ERP consulting services for many years now, and so digital transformation is critical to us as it helps us to help businesses of all sizes to refine their processes in order to make them more efficient and effective.
What is digital transformation?
Ask ten people what is meant by digital transformation, and you will get ten different answers. However, if you want to narrow it down, the Global Centre for Digital Business Transformation says that “organisational change is the foundation of digital business transformation.” This helps to show that although the word ‘digital’ appears in the topic, it is not just about technology, it is also concerned with changing the corporate culture and business processes as well. It deals with changing the way that people work and the daily strategies and work processes that they use.
As you can imagine, changing the way employees within your organisation work can be quite tricky, but it is a process that is worth tackling as it can yield the most rewards for your business. Digital transformation can completely flip your business on its head and make it more data-driven, which will mean it is more efficient and agile, and so you should always be ready to take advantage of any business opportunities that come your way.
What is ‘digital’ about ‘digital transformation’?
As we have said digital transformation is not just about technology, but the transformation of any business usually starts with technology, so it is a good idea to have some idea of what the term ‘digital’ actually means in this context.
The technology that you use to drive your business forward can frequently change, depending on what IT tools you are currently using. For example, one of the most significant challenges that many businesses are facing is the storage and analysis of large amounts of data. Many companies are paying huge sums to store all the data they collect, but they are not analysing it and so are missing out on tremendous opportunities to understand their customers’ behaviour better and also gain better insights into their business as a whole. This shows that digital transformation concerned with data and analytics is probably the right place for companies to start their transformation, as well as to look at cloud software meaning they don’t have to invest in on-premise or off-premise servers every few years.
Collaboration tools are also an essential part of digital transformation as they will allow your employees to not only be more flexible in their working practices but will also encourage collaboration and an increase in productivity as well.
This is just a brief introduction to the topic of digital transformation, and it is an area that we will continue to explore in blogs over the next few months. It can be a complicated process and finding the right strategy for the transformation of your business can be difficult. We are here to help you along the way, though and help you to build a sustainable business strategy.