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Role of Digital Transformation and Quality management in Optimizing Business
In recent years, many companies have accelerated their digital transformation to remain competitive and even survive the Covid-19 pandemic across a wide range of industries.
B2C and B2B sectors have both experienced changes in consumer behaviors, knowledge consumption, and processes as the world and its consumers become more digital. As per Statista, digital transformation expenditure will reach 1.8 trillion dollars in 2022 and 2.8 trillion dollars by 2025, showing how much companies are investing to remain competitive.
Is it possible for your business to transform to be where your customers are? How are different industries ensuring their long-term survival in a digital era?
What Do You Understand by Digital Transformation?
You can find billions of answers to that question on Google. Digital transformation is more than technology, as many people believe. An organization's operation, communication, and customer engagement are transformed by digital transformation. Embracing technology disrupts 'traditional' ways of operating.
A digital transformation requires a teamwork approach as well as cultivating a digital culture and upskilling your employees.
Is There a Difference Between Digitization, Digitalization, and Digital Transformation?
Business and digital terms can be confusing if you don't know what they mean. There are many types of digitization, including digitalization and digital transformation. Here are the differences between each of them.
A digital version of a printed newsletter or magazine or using an electronic signature to sign documents online are examples of digitization.
A digital business is one that uses digital technologies to change its business model or generate new revenue streams. An example is using cloud computing for the storage of data or automation for the workflow to streamline processes. It's about using online technologies and channels to become a digital business.
The concept of digital transformation is a process that involves reinventing systems, cultivating a digital mindset, and exploiting new opportunities using digital technologies and processes.
Digital Transformation Types
There are four types of digital transformation that organizations should consider to realize its full potential −
This is the process of transforming your business through data, analytics, artificial intelligence, and any other processes that can be used to reduce costs and increase operational efficiency.
Business Model Transformation - This refers to a fundamental change in the way a business or organization operates, which can include personnel, processes, and technology. Consider Netflix, for example, and how it revolutionized the video distribution industry by completely overhauling it.
With the acquisition of new technologies, this area provides a great opportunity for a business to venture into a new domain or area that it may not have previously explored. The Internet of Things (IoT) product Google Nest, a thermostat and smoke detector for homes, is one of many business offshoots of Google.
Creating a culture and way of thinking that is grounded in a new culture and way of thinking is how cultural/organizational transformation happens.
How to Transform Your Business Digitally in 6 Easy Steps?
It's crucial to take a strategic approach from the beginning of digital transformation since it's a long and complicated process. In order to improve, you should develop a digital transformation framework. Below are six steps to take −
Make Sure You Understand Why You Are Doing What You Are Doing
The motivation for becoming digital is a crucial part of digital transformation. Businesses are not alike, so knowing why yours is embarking on this journey is essential.
Identify the causes for your transformation. What is the purpose, as far as improving customer service, increasing efficiency, or managing data is concerned? When you understand your causes, you can plan ahead to make sure they are met.
Conduct a Company Audit
You need to know where your company is now to figure out where you have to go. You are required to review what procedures and systems your organization has in place and how efficiently they work. How effective are digital tools and technologies if you are using them? How is your organization structured, and how does it operate?
Identify Your Gaps
There might be many inefficiencies in your company or opportunities that you have not taken advantage of. How can you maximize your digital transformation?
How do you engage and retain leads? How does your consumer experience differ from channel to channel?
Analyze Your Team’s Capabilities
This stage is more about your talent than your technology. If you don't have the digital skills to steer your business, it makes no sense to transform it. Do you have the digital skills necessary to drive transformation at your company? Have you created a specific training program that will help your employees upskill with essential digital skills?
Develop a Strategy for Digital Transformation
It's time to create a digital transformation strategy that can guide your business after you know your capabilities, motivations, and team’s talent. In this way, you can follow a roadmap with KPIs and a funding plan.
Be Agile when Reviewing and Revisiting!
There should be no hard and fast rules when it comes to your digital transformation strategy. If internal and external warrant it, make room to review your strategy as the digital and customer ecosystems change constantly. To navigate this type of transformation, your company must be capable of pivoting and adapting accordingly.
Digital Transformations - Great Examples
These well-known brands from different industries will give you inspiration on what can be accomplished using digital transformation.
In 2021, 91% of Domino's sales will come from digital channels, according to Marketing Week. Domino's has transformed into a 'truly digital-first business' since the 1960s. After looking at bankruptcy in 2011, the brick-and-mortar business turned things around by allowing customers to order pizza on smartphones within 17 seconds of a green light.
In 2021, Domino's generated revenue of $4.36 billion thanks to e-bikes and autonomous delivery, transforming the business into a $4.36 billion company.
Nike's logo of swoosh is instantly recognizable, but even the world's most famous brand needed a digital transformation to stay competitive.
Under his leadership, Nike transformed their supply chain, mindset, and brand. As part of the company's efforts to improve direct-to-customer sales, it developed powerful digital marketing campaigns, updated its e-commerce strategy, and enhanced its data analytics. Additionally, membership opportunities were expanded and concept stores were piloted in 2018.
A series of social media posts by the brand promotes Mental Health Awareness Week among athletes, as well as brand awareness, customer engagement, and community-building initiatives.
Nike's CFO, Matt Friend, noted that consumers are increasingly turning to digital to get the products that they like, and NIKE's digital experience helps in building deep customer connections.
Digital Transformation Benefits
Businesses and their employees benefit from digital transformation in many ways, including −
Enhances customer experience
Provides insights based on data
Collaboration is encouraged
Enhances employee satisfaction
Improves agility and innovation
Maintains and updates skills and knowledge
Develops a culture of digital technology
Processes and operations are consolidated
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