5 Things You Should Know About Digital Transformation

Digital Transformation is a term that seems to be thrown around more and more these days…and tends to leave us wondering “What the heck is Digital Transformation?”. Well, we’re here to clear up your confusion! So, without further ado, let’s breakdown the must-knows about Digital Transformation.

What is Digital Transformation?

According to salesforce.com, it is “the process of using digital technologies to create new or modify existing business processes, cultures, and customer experiences to meet changing business and market requirements.” This simply means the process of re-imagining business in the digital age, i.e. getting your business up-to-date and tech-friendly!

Digitisation, Digitalisation and Digital Transformation Demystified

Most people tend to confuse Digital Transformation with Digitisation or Digitalisation. In reality, these terms are more than just mere wordplay. We share the meaning of each term and the differences with Digital Transformation.

  • Digitisation: Digitisation is the process of converting information from analogue to digital mode. Think moving your diary from a fancy notebook to a thumb drive.). Digitisation enables efficient and effective storage of information which takes up less space.
  • Digitalisation: Digitalisation is the process of turning communications or interactions and business functions into digital ones. Such integration may very well include a combination of both physical and digital communications such as integrated marketing.
  • Digital Transformation: Digital Transformation refers to changing the way business is done, and creating, in some cases, entirely new classes of businesses. Digital Transformation makes companies re-evaluate and improve on their current SOPs for areas such as internal systems to customer interactions; basically, the process of utilising technology available to develop and transform a business to suit current needs. In contrast, digitalisation simply means applying technology to run an existing business whereas digital transformation means developing new businesses in a digital way.

Why is it important?

A paradigm shift towards technology-based solutions has resulted in the need for everyone (from employers to employees and major MNCs) to adapt to these changes. Ironically, the Covid-19 pandemic, which brought the global economy to a near halt witnessed a steady growth in the development and integration of technology in most businesses and corporate organisations given remote work arrangements.

What are the benefits?

Some of the benefits of digital transformation include:

  • Transforming customer experience: Before getting confused about how this affects you, please remember that for a majority of the services you use, you ARE the CUSTOMER. And one of the main purposes of digital transformation is to make the customer, i.e. YOUR experience as convenient and fuss-free as possible.
  • More data-based insights: Within a business or an organisation, more data-based insights are generally a good thing; analysing these insights helps a business develop and enables more efficient and effective practices to be implemented.
  • Collaboration across departments: Digital Transformation requires all hands on deck for it to be a success, meaning that all departments within an organisation have to work together. This not only enables Digital Transformation to proceed effectively within an organisational structure, but it will also improve overall efficiency and effectiveness.

Key Trends in Digital Transformation

Some of the key trends in Digital Transformation that you should know about:

  • Better use of Artificial Intelligence (A.I.) and Machine Learning (M.L.)
  • Increased digital partnerships, mergers and acquisitions activities; and
  • Improved Digital Transformation success metrics.

 

In short, Digital Transformation is set to serve as a key player on multiple levels, and the best thing we can do is to ensure we are equipped with the skills to remain relevant in the evolving world of digital technology.

Future-proof yourself today with the Diploma in Digital Transformation offered by BAC Singapore, the Bachelor in Business Administration (Digital Transformation) or Masters in Business (Digital Transformation) at Veritas University College.