Surviving in a Digital Economy
Surviving in a digital economy can be daunting for many businesses. Fortunately, there are various ways companies can adapt to meet the realities of the digital economy. Many companies have begun digitization but have yet to enact true digital transformation. With digital transformation, businesses can prepare themselves for the future of the digital economy.
Realities of the Digital Economy
New digital technologies have fundamentally changed the way businesses have to operate across a wide variety of industries. Companies must adapt to these new realities or risk being left behind. Understanding the necessities of surviving in a digital economy is essential.
New digital solutions change how companies conduct normal business functions such as sales and fundamentally change how they interact with their customers. With the potential for such drastic change, companies have the opportunity for tremendous growth. First, however, companies must commit to the process of digital transformation to be prepared for the realities of the modern digital economy.
Impact of the Pandemic
The pandemic exposed a wide variety of weaknesses in the business operations of many industries. Digital solutions were adopted extensively to fill the gaps, dramatically increasing the digital transformation rate. The pandemic has only accelerated the process of digital transformation. Because of this, industries and companies have begun to understand the necessity of surviving in a digital economy.
Digitization vs. Digital Transformation
Digitization is distinct from digital transformation, and it is easy to confuse the two. Data is communicated and stored digitally with digitization, but the business does not necessarily have to change. Digital data improved efficiency but were oriented around analog-based systems and ideas. At the same time, digital transformation is about fundamentally changing the nature of business operations. It is about making new solutions rather than being content just making old ones more efficient.
Surviving in a digital economy requires businesses to see how to leverage technology to craft entirely new business models and niches. For example, companies have been offering their services on social media to allow customers to engage with their products on their terms on their preferred platforms. This is more than simply digitizing analog data but making digital solutions work for your business.
Central Goals of Digital Transformation
Track Customer Pain Points
Actively track and learn about the pain points of customers. This ensures that your business is constantly adapting to customers' changing needs. By consistently seeking out these paint points, your business is better protected from the upheaval of new companies entering the industry. This also shows customers that your business is committed to providing the best quality service.
Central to digital transformation is being adaptable. Technologies are changing daily, and your business must be able to take advantage of this. Clinging to out-of-date technologies and business models can easily drag a company down.
Invest in Innovation
Invest in innovation to ensure that your company can lead the charge on new technologies rather than scrambling to react. Companies that have established themselves at the forefront of technological innovation are leaders in their respective industries. This demonstrates the critical nature of investing in innovation to become an industry leader.
Custom and Smooth Customer Experience
Importantly businesses must provide a customizable experience for customers. This enables customers to find the solutions they need and dramatically increases overall customer satisfaction. You should strive to make your business model as smooth and integrated as possible. With new technology, you can make it easy for customers to interact with anyone in your company, from sales reps to customer service.
Meet Customer Expectations
Customer expectations drive the digital transformation trend as they expect companies to use new technologies to meet their needs. Now consumers expect that they can conduct whatever business they need to with any device they want. Companies that can meet this demand can survive in a digital economy. This is especially important as startups constantly enter the market to meet new customer expectations.
Digital Transformation Process
Embarking on the digital transformation process is daunting and critical for businesses. Several steps must be considered when going through digital transformation.
A business must evaluate and adapt its processes in order to achieve the goals of its digital transformation. To successfully transform business processes, both goals and metrics for success must be clearly identified from the start. All stakeholders, from employees to owners, must be involved to ensure that every aspect of the business is evaluated and improved. Ensure a target workflow is in mind and monitor progress with each step to verify that the transformation is working towards its goals.
Business Model Transformation
Companies have also used new digital technologies to change their business model entirely. Examples include Uber and Netflix, which effectively adapted new technologies to change how they do business in their industry. This ability to drastically change the direction of your business model is central to surviving in a digital economy.
Organizational transformation is another critical component of digital transformation. The company must be willing to embrace and use new technology. Failure to do so can easily lead to decreased productivity and market competitiveness. Companies must have the culture and organizational capacity to make these changes.
New Technologies Available
AI and automation allow companies to input decision-making into the workflow instantly. This enables customized customer experiences and real-time supply chain management. Hybrid Cloud allows firms to connect public and private cloud assets and, in doing so, create one unified cloud solution that works for any workflow. This provides companies flexibility and reliability to meet the needs of their customers.
Blockchain enables companies to transparently and securely conduct financial transactions. This provides customers with adequate security and peace of mind, which is absolutely in the modern economy. It is essential that companies evaluate whether they can leverage these technologies in the modern digital economy.
Digital transformation is not a short-term fix but a long-term investment in ensuring you are capable of surviving in a digital economy. It must focus on developing your company's ability to adapt to the changing conditions and customer expectations of the digital economy.