Digitalization or Digital Transformation is the most hot and discussed topic in the business world right now. According to Business Dictionary, digitization is the conversion of analog information to digital form with suitable electronic devices so that information can be processed, stored, and transmitted through digital circuits, equipment, and networks.
Digitalization is happening constantly on and around us at a much faster pace than any other change we have anticipated. This is the reason why they call it a revolution.
In today’s growing age of cut-throat competition, businesses need to have an edge for the survival of the fittest!. Success of Digital Transformation also depends on having the balance of most advanced technologies and right operating systems. It may involve integration of old skills and new technologies and trends. Connectivity between different sources of information is the key enabler.
Relevance of Digital Transformation/Digitalization for the Business Sectors:
Customer satisfaction is one of the key areas of importance; for any organization, the customers come first. If an organization needs to measure their success, it is very important to understand the quality of customer satisfaction. The better the customer satisfaction levels, the higher the digital transformation success rate for organizations. Digitalization generates a closer bond with clients and prospective customers and create added value for them. It also allows the use of new sales’ channels, such as e-commerce or social media networks. For eg. developing a website would enable your company to be in the market 24 hours a day, 7 days a week.
Complex Legacy tech stacks act as a chief barrier to digital transformation as it has never been easy to replace the legacy applications like Mainframe etc. This challenge can be tackled using API led approach by enabling innovation on Legacy Systems. If you build an API on top of the legacy/back-end application, it will provide flexibility to abstract the core business logic and also to update parts of legacy/back-applications one part at a time without affecting the end consumers.
Cloud Computing, Internet of Things, Artificial Intelligence are the next big important aspect of digital transformation which IT needs to focus to achieve desired goal.
The IT organization must also commit to being agile, recognizing that the old functionally driven techniques must change. They must change from a waterfall-driven and event-focused set of philosophies and methodologies to agile IT, transforming event-focused IT to a journey-focused IT and hence the focus on having Flexible and scalable infrastructure, shorter release cycles, Continuous Delivery and Integration, automated deployments using well organized DevOps strategies, software integration via API’s, etc.
IT plays a crucial role in Digital Transformation journey for any organization . Traditionally IT has been observed as a tool to keep business processes running efficiently, but in the modern age of Uberization and Big Data, IT has become the business process. Companies and organizations which effectively manage and harness the flood of available data – from within and from external sources – have got a bright future.
Organizations are moving away from manual interventions, as a part of the change manual processes are getting replaced with more automated processes, there is a quicker process flow which is put into place, thereby making the organization efficiency model a success story to reckon. Digitalization reduces operating costs and improves efficiency. It also enables efficient cost management that implies a more effective control of production and sale processes. Digitalization also allows companies to create new business models and revenue sources. Efficient use of resources, lower personnel costs, current numbers, reduced investment costs are some of the advantages.
Digital transformation and disruption have been making waves lately across all industries. To stay relevant, companies, departments and individuals need to know exactly where business technology is headed and be sure to stay on top of each shifting digital trend. Those who embrace these technical advancements into their business structure will thrive, those who don’t risk being left behind the digital revolution. In short, we can say to increase the presence of a company in the society, and in turn raise more awareness and goodwill in the environment, digitalization really is the ‘lifeline’ of any business.