Digital transformation as an agent of change

The world is advancing faster and digital transformation is the order of the day. With the emergence of new technologies, the way we work, buy and relate has changed. In this context, companies have the need and obligation to join this process of digital transformation so as not to become obsolete and achieve a rapid and correct adaptation to the new digital era. In this block, we will explore the benefits of digital transformation, the main technologies used and understand how digital transformation acts as one of the agents of change in companies.

What is digital transformation?

Digital transformation can be defined as the integration of new technologies in all areas of a company, which gives rise to fundamental changes in the way companies operate and offer value to customers. In addition, digital transformation tries to take advantage of technology to create new business models, processes and customer experiences by leveraging digital technologies such as data analysis, cloud computing, and Artificial Intelligence (AI).

In this sense, digital transformation tries to transform a traditional business model to an agile one, data-driven and customer-centric. Similarly, it enables organizations to be more efficient and innovative, respond quickly to market changes, and create new sources of revenue. That is why we must understand that implementing digitization and this type of transformation in organizations does not only respond to the use of technology, but also to changes related to the company's culture, strategy and organizational structure. In addition, it requires a change of mentality and a strong commitment to innovation.

The keys of digital transformation

Many times companies can feel overwhelmed to think of digital transformation as a radical change that they do not feel capable of carrying out in the short term. In reality, digitization must be understood as a gradual process that is aligned with the capabilities and needs of the company, it must also be taken into account that its implementation involves all members of the organization.

In order to successfully carry out this transformation, it is necessary to pay attention to three key points:

1. Know the customer and their needs through data management
2. Promote innovative leadership with a high capacity to contribute new ideas
3. Promote productive and flexible ways of working that help retain talent

In short, the digital transformation of organizations must be carried out with future needs in mind and, therefore, it is a key factor for the sustainable development of any organization.

Now that we have understood the keys that govern digital transformation, we will see how we can carry out these changes:

• Leaving the comfort zone: evolution as a company implies having an open mind to renewal as an organization.
• Promote digital skills among employees: the current job landscape requires creative and innovative people who are willing to train digitally and are able to acquire digital skills and abilities.
• Ability to design digital strategies: the current and future business model must focus on the customer experience and the digital environment. In the same way, when defining the digital strategy, it is necessary to involve all the departments of the organization.

It is necessary to understand that digital transformation is not an objective in itself, but a process that organizations must adopt, which requires an open mind to change, emotional intelligence and the ability to adapt around constant change.

Benefits of digital transformation

Through digital transformation, companies acquire new techniques and skills that allow them to gain a competitive advantage over the competition and offer a much more relevant value proposition. Next, we will see the main benefits that transformation offers to organizations.

1. Generate new customer experiences: By leveraging data analysis, organizations can better understand customer needs and develop products or services to meet them. In this sense, improving the customer experience leads to generating experiences that are more satisfactory and help to build customer loyalty.
2. Improve operational efficiency: with the integration of digital technologies, such as data analysis and automation, organizations can streamline processes and reduce costs. These factors can contribute to improving efficiency and better operating performance.
3. Deepen data analysis: The vast majority of companies collect a large amount of data about customers, but the real benefit is to optimize that data for analytics that can drive and improve the business. With the digital transformation, a system of collecting relevant data is created that really adds value to the company.
4. Develop new sources of income: By implementing technological changes and improvements, organizations acquire capabilities to create new products and services, enter new markets and reach new potential customers.
5. Promote the culture of innovation within the organization: by taking advantage of digital tools and technologies, organizations manage to create a more attractive work environment in which collaboration and innovation are encouraged among employees. In addition, it contributes to increasing employee engagement and motivation.
6. Increase agility: with the application of digital technologies, organizations can respond quickly to changes occurring in the market and adapt their strategies and operations to the needs demanded.

Although we have named several of the main benefits that digital transformation offers organizations, we must bear in mind that the change process still presents many challenges and also some risks for companies.

Technologies used in digital transformation

Digital transformation requires using a variety of technologies and tools that allow us to obtain the desired results. Now, we will see which are the main and most relevant to carry out the transformation process in organizations:

• Internet of things: a network of connected devices that allows the exchange of data between them without the need for human intervention. It can be used to collect and analyze data, automate processes and improve operational efficiency.
• Robotics: machines with sensitivity, control and intelligence that aim to automate, increase and assist human activities.
• 3-D printing: 3-D printing aims to produce three-dimensional objects through the successive stratification of materials, such as plastic, metal, glass, wood, etc.
• Artificial intelligence: AI is a form of intelligent software that has the ability to learn, understand, think, plan and act on the basis of large amounts of information. In addition, it can be used to automate tasks and processes, make decisions, and even deliver personalized experiences according to customer needs.
• Augmented or virtual reality: augmented reality represents the superposition of visual or auditory digital information over the physical world to increase worldview. On the other hand, virtual reality represents a computer-generated 3-D simulation in which the user interacts with the virtual world in a realistic way.
• Blockchain: blockchain-based technology of decentralized and public operations. Thanks to this technology, a shared database is generated among the people who have access to it and allows you to save and confirm transactions with great reliability and autonomy thanks to the use of its algorithms.

Being advised by professionals is vital

Since each company is different, it is interesting to let yourself be advised to create a digitization strategy according to the characteristics, objectives and dimensions of each business; and this is where DOT Consulting can help you.

Improving the level of digitization with the help of a professional allows us to know at what point the company is with respect to its competence and respect for the sector of which it is part. At DOT Consulting we identify and improve operations where more value is generated for customers. We also take care of generating new business opportunities based on new technologies and the business model of each organization. In addition, we are aware of the importance of adapting functions and responsibilities to all members of the company to optimize the new business model. Therefore, we accompany you in the management of this process personally.

Shall we talk?