Digital technologies have been rising in usage for some time but then the Covid-19 pandemic occurred and changes which would have taken months, if not years, happened within weeks. According to Dells Digital Transformation Index 2020, 89% of business leaders said the pandemic identified a need for more agile technology within their business.
According to Statistica, global spending on digital technology is expected to reach $2.8 trillion dollars by 2025.
In this blog post we will explore all things digital, and look at what digitalisation is, the benefits, the reasons for the rapid rise in digitalisation and some steps for embracing a digital transformation in your business.
The term digital transformation refers to the process of changing your business model to adopt more digital practices. It is not to be confused with digitisation which is the act of converting physical documents into digital ones such as scanning a paper document and converting it into a pdf. Digitalisation goes beyond investing in a new piece of software, it is more about transforming the entire way you run your business and operate with your customers, suppliers, employees, and stakeholders.
Adopting digital technology is no longer a choice that businesses face, but a necessity. A necessity to protect your business in the future, to remain competitive and to move your business forward. There are many benefits of going digital, but these will vary among organisations and the degree to which digitalisation is enforced, but when done right, benefits can include:
According to a study by McKinsey, a staggering 9 out of 10 business leaders think their business models are becoming obsolete and need to invest in more digital technology.
Unprecedented challenges such as the Covid-19 pandemic have certainly accelerated the move to digital technology for many businesses, however the reasons for moving towards digitalisation go much further back, and we have becoming more reliant on technology in our personal lives for several years such. Key driving forces include:
Put simply, customers drive change and customers expectations are increasing. For example, customers want their products quickly and online retailers such as Amazon have met the expectation of this by paving the way with next day delivery and even same-day delivery. Methods of paying for goods have also evolved and customers can now pay for items via Apple Wallet on their smart phones and smart watches. As a consumer yourself, can you remember the last time you paid for an item with cash? When a customer needs to reach customer services, their first stop is now predominately an online chat facility – they don’t want to sit on the phone listening to music when they can reach someone immediately. All these factors mean customers have given businesses an ultimatum – go digital or we will go to a business that has!
In fast a paced environment business leaders need to be able to see exactly what is always going on within the business to make timely, sensible decisions based on facts, not guesswork. A digital transformation strategy can help you integrate solutions and streamline processes to give you the data needed to achieve good visibility and more efficient decision making.
Cyber security concerns are at an all-time high and attacks are becoming more sophisticated and damaging to businesses; it’s estimated that cyber-attacks cost UK businesses £27 billion a year, giving IT leaders serious cause for concern. Undergoing a digital transformation is an effective way of reviewing your cyber security and implementing the most up-to-date security measures and technology to help protect your business.
Along with customer expectations, employee expectations are also changing and since the Covid-19 pandemic there has been a big shift towards hybrid-working, with a quarter of the UK workforce currently undergoing a hybrid approach to home/office-based work. Digital technologies make working from home a feasible option.
Taking the initial steps to a digital transformation can be daunting, but your organisation may have already begun the process of digitalisation without even realising it. Undergoing a digital transformation is a long and complex process so it’s important to take a strategic, step-by-step approach.
No two businesses are the same and therefore every business will have different reasons for embarking on a digital transformation, and any digital transformation takes time and won’t happen overnight. The first step is two identify areas for improvement and examine why you want to move to digital processes so you can then put forward a plan to meet these goals. For example, do you wish to improve customer service? Do you spend too long on manual processes and want to add more automation? Other areas you may identify areas for improvement are:
Looking beyond technology, review the talent within your workforce and whether you have a digitally skilled workforce to drive a digital transformation. If not, consider what training and up-skilling will be involved in equipping your workforce with the tools they need to adapt to a digital transformation.
Once you have identified your areas for improvement, set your goals and reviewed your current capabilities it’s vital to get your entire organisation on board. For a digital transformation to be successful it involves a culture change and everyone working together to achieve the goals of the company. You also need to gain the required investment so it’s essential to start this process as soon as your goals have been set.
Keeping your goals central to your planning think about how you can meet your goals and what elements may be the first to implement. Don’t be afraid to employ external consultants to help create a digital strategy as they can often help you pinpoint the best route for success.
Don’t get caught up integrating new processes that you forget to integrate your existing systems and processes and become completely disconnected. Also, avoid making the common mistake of installing several new systems which don’t integrate at all because above all, integration is key to a successful digital transformation.
Your digital transformation strategy will be ever-changing and developing as your business goals grow and your customer expectations change. Make sure you continually review your digital strategy and pinpoint areas for improvement where necessary.
The rate at which businesses are undergoing digital transformations has increased rapidly in recent years, especially in the wake of the Covid-19 pandemic. There are many reasons for digital transformation which will vary from business-to-business but changing business landscapes, competitor activity and a need to drive efficiencies are common drivers. Whatever your reason for embarking on a digital transformation it is essential to have clear goals and a strategy in place to help you achieve success.
For more information about how Pegasus can help you undergo a digital transformation by integrating your core business functions with our award-winning Opera 3 ERP solution then contact us today.
Posted On: October 06, 2022
