Digital transformation offers enormous potential for companies at a competitive level in an increasingly technological world. This is shown by a study by the Massachusetts Institute of Technology, which states that the most technological companies are more profitable and have more satisfied customers.
Many managers today are overwhelmed to think of digital transformation as a radical change that they do not feel capable of assuming in the short term. In reality, digitization should be conceived as a gradual process according to the capabilities and needs of each company.
Ignorance, fear of change, and myths around digital transformation make many managers get goose bumps when they hear about this topic. The consequence is that many organizations continue with outdated and unprofitable work processes.
What is digital transformation?
In 2108 he had published an article about it "The path to success in digital transformation in companies" where he emphasized the transformation in companies. In this sense, it can be defined as the integration of new technologies in all areas of a company to change the way it works. The objective is to optimize processes, improve their competitiveness and offer new added value to their customers.
So; It is not about buying the most powerful servers, storing data in the cloud or installing an ERP. Digital transformation implies a change in the mindset of managers and the creation of new business models based on digitization.
Adapting to digitization and the technological changes that it entails is not bad, but on the contrary, it provides many advantages for companies. We must accept that both the market and our audience have also changed their needs and become much more demanding. In this scenario, understanding that adapting our company to a more modern customer who lives pending a mobile phone, a computer or a tablet is essential to be attractive and make a difference with respect to the competition.
What is the effect of consumerization in Latin America
Consumerization has in turn driven the adoption of systems to create solid and lasting relationships, which enable new forms of relationship with customers through the web, mobile apps or the presence of companies on social networks. In these cases, the degree of adoption of these systems is close to 70%, according to a study carried out by DISRRUPTIA Consultores. These systems generate so-called unstructured data, which reflects the interaction of customers and employees through human-machine interfaces.
In other words, digital density is an indicator of how many of the processes that take place in a certain organization are based on data that can be accessed remotely, that is, connected data. Increasing digital density blurs the boundaries between the physical and digital world and allows the development of new business models.
In this sense, data has become the “new oil” of the economy, it needs to be used beyond automation processes, and that it becomes the true generator of value and engine of transformation.
Changes in business models in companies
There is no doubt that disruptive technologies, and especially data, are changing all areas of our society. For this reason, it is not surprising that digital transformation is also changing business models.
There are a large number of paradigmatic examples such as the media or the banking sector, with the beginning of many changes that have been consolidated in recent years. In these sectors, it was easy to think that printed information would give way to real-time information distributed over the Internet, or that many transactions could be done without the need to go to a branch. Along these lines, online fashion stores have been increasing in recent years.
Thanks to this set of technological capabilities, companies can achieve, with the accompaniment of expert consultants, a different way of satisfying the real needs of their clients by designing a new, unique business model and, if it is right in its design and execution , competitive, compared to the multiple offers from which your customers can choose.
In short, companies compete in doing things differently, innovating in the business model focused on customer segmentation and adaptation of the offer. The automation of processes can help reduce operating costs. On the other hand; The involvement of the company's executives is of utmost importance, allowing the organization to anticipate market changes.
How can these changes be generated?
There is no doubt that companies continue to have the inertia to use traditional assessment instruments such as a Business Case, which in some case could collide with the need for experimentation that innovation and learning processes entail.
1. Leave the comfort zone. Evolving as a company today implies an open mind to renewal. Digital transformation does not have to be a chaotic or traumatic process, and for this there are expert consultants who will guide the company to achieve success.
The fear of change means that many companies in the world are losing ground to those that have opted for digital transformation. Mainly, this is seen in their relationship with customers. Consumers of the 21st century use new technologies on a regular basis to answer questions or satisfy needs. Who loses a morning to stand in line at a bank if you can do it comfortably from your mobile phone?
2. Promote digital skills in employees and managers. The new digital ecosystem requires innovative, creative and willing people to be digitally trained. This process involves both employees and managers, who must acquire digital skills and other skills such as: a) Self-learning ability b) Collaborative work between departments c) Fluid and effective communication with customers, suppliers and colleagues d) Customer orientation.
In Latin America there is a long way to go in this regard, but digital transformation is a great opportunity to attract talent that brings together the necessary skills in the technological age.
3. Design digital strategies. The current and future business model must focus on the customer experience and the digital environment. Implementing new technologies is the first step. Today's systems make it possible to define a digital strategy that connects the entire company with the digital world. Some essential actions are the design of a customer life cycle map, the measurement of the results, the correction of errors in real time and the future planning according to the data obtained.
The pandemic (COVID19) left us the Digital Transformation as a lesson
Eight months after the start of the pandemic, there are still some who do not see the value of betting on the digital transformation of their business. The arrival of the coronavirus has put millions of companies around the world in check, which have seen how, in the blink of an eye, the work of many years can collapse.
The impact of COVID-19 confirms that the best trained for the continuity and resilience of their business are those who are committed to technology and digitization. Sadly, a pandemic has had to come before many have had to realize its importance.
Have you already addressed the digital transformation of your company? What aspects seem most important to you? Tell us how you take advantage of new technologies to take your business to the next level.
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