The Digital Transformation Journey: How Companies Digitalize?
Explore the evolving landscape of digital transformation, where companies are reshaping customer experiences through innovation and machine learning. Witness the shift from traditional processes to a highly customized approach, offering insights into modernization, enterprise-wide transformation, and new business creation. The global market for digital transformation is booming, accelerated by the COVID-19 pandemic. Discover the three essential phases of digital transformation in this comprehensive article!
Two examples of Comcast's innovative new product offerings are voice-activated controls and a cloud-based TV viewing platform. However, this did not produce the anticipated increase in consumer satisfaction.?
Citing the pandemic's "accelerated adoption of digital technologies," the $84 billion American media and communications company reorganized, aligning customer experience and product innovation. With this change, Comcast produced a highly customized experience that makes content recommendations based on machine learning.?
Additionally, to guarantee a seamless and economical client experience, Comcast monitored the effects of its offerings through accounting, customer service, technology consumption, and IT investments. This illustration demonstrates how you can comprehend and manage your touchpoints and interactions with your audiences by focusing your digital transformation strategy on the customer experience. This includes the marketing campaigns they see, the salespeople and procedures they deal with, and the initial point of contact with your business.
Source: Walkme
The Growing Prowess of Digital Transformation
According to Research & Markets (2020), the global market for digital transformation journey is expected to expand at a compound annual growth rate (CAGR) of 16.5% from $469.8 billion in 2020 to $1,009.8 billion in 2025.
According to 97% of businesses, the COVID-19 epidemic accelerated their plans for digital transformation. Digital transformation has accelerated as a result of the worldwide epidemic. Companies' DX projects have advanced by an average of six years,, thanks to COVID-19.
72% of leaders in data and analytics are either at the forefront of their company's digital transformation efforts or have a significant role in it. Digital transformation initiatives are spearheaded by 24% of D&A leaders, with 48% strongly involved. Just 3% of D&A executives said they aren't currently working on digital transformation projects .
The top 3 areas that businesses are expanding in during their digital transformation are the cloud, artificial intelligence, and the Internet of Things. Organizations are increasing their cloud capabilities at a rate of 45%, their artificial intelligence (AI) at 39%, and their Internet of Things (at 36%). Businesses are also experimenting with new technologies; the top three are digital twins (24%) and robotic process automation (20%), followed by 5G (27%).
Stepping into Digital Transformation: The Phases?
The process of digital transformation takes time. It's a voyage, an extended expedition with multiple stops. Every stage serves as an essential stepping stone towards an integrated, prosperous digital future. To shed light on the procedure and possibly offer a road map for businesses that are prepared to set out on their own, we would like to break down these steps below -?
Step one of modernization involves streamlining and digitizing current procedures and features. Creating customer apps or adding new self-service touchpoints are two possible approaches to improve the customer experience. Connecting items and digitally re-engineering key processes are two possible approaches for operations. Automating HR procedures or giving staff members access to a self-service portal can improve employee experience.?
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Do these initiatives change the company? Probably not. This stage is frequently overlooked or even mocked, but it is one of the most advanced phases of digital transformation. It strengthens and improves the organization's digital intelligence, much like the foundations of a house. Additionally, it offers comparatively fast profits, which can support more sophisticated digital investments. Additionally, it's a fantastic opportunity for the company to advance its digital skills.?
Step two, enterprise-wide transformation, involves a complicated cross-value-chain change endeavor. An illustration of this would be a retailer's desire to offer a completely integrated customer experience across all of its digital and physical channels. Operations may use it as an IoT application to automate order-to-cash procedures or perform condition maintenance. In terms of the employee experience, this can involve instituting agile working practices or creating a culture of ongoing education and retraining.
Are these initiatives transforming? Indeed. Developing the necessary skills to ensure the success of a transition includes aligning conventional organizational silos, establishing appropriate governance models, hiring new people , and other related tasks.
Step three, new business creation, is about growing the current pie or generating new revenue streams. Transitioning from selling goods and services to new subscription-based business models through digital transformation services may have an impact on the customer experience. For operations, this can include properly predicting the operational performance of systems or goods through the use of data and analytics.?
These are real transformations since they necessitate new methods of operation and put the organization's current structures, procedures, and capacities to the test. Since this involves switching from the current operational paradigm to a new one, leadership is essential. This stage frequently necessitates reconsidering the organization's borders as it switches from conventional linear supply chains to ecosystems. A high degree of digital transformation maturity is necessary.?
Digital Transformation is a 360-degree Endeavor
Most businesses will oversee a portfolio of projects that could address each of the three categories. To achieve rapid wins, they might, for example, modernize a little while implementing enterprise-wide worldwide programs and/or developing novel business models through controlled pilots and tests.??
However, from the standpoint of organizational learning, it's uncommon to discover instances of digital leaders in big businesses who have advanced past the initial stages. The secret to a more successful digital transition is to start at step one and give it the attention and resources it deserves.
If you are looking for a software product engineering company that can speed up your digital transformation journey, Tntra is the right partner to trust.
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