Digital Transformation: what you must do

Today digital transformation is a great need for companies. However, it is not an easy process.

The great difficulty in applying it is the need for change and reorganization inside companies, which means you have to modify internal processes and company culture.

On the other hand, the advantages that digitalizing processes brings are very important and improve competitiveness.

What is Digital Transformation?

Digital Transformation is the action in which a company reorganizes its strategy and work methodology to get greater benefit thanks to the inclusion of new technologies.

The aim is to apply digital innovations to create new opportunities that were not included before, such as:

• Automating processes.
• Minimizing costs.
• Maximizing efficiency.
• Creating synergies between departments.

How to implement Digital Transformation?

The implementation of Digital Transformation in each company must be unique and personalized always taking into account the pace of the company.

The implementation affects all departments and hierarchical levels of the company. It must also be done little by little so it doesn’t create rejection among the company’s employees.

The digitalization of a company does not have to be traumatic. You only need to be aware of the company culture and its way of working, and adapt the digital transformation effectively based on that.

Keys to start digitalization

1. Digital thinking: People are one of the important pillars of Digital Transformation, so we have to help them adapt through training. You must involve them in the change by telling them what it consists of and the benefits it will bring to everyone in their life and professional career.
2. Digital tools: It is not all about having a website and social networks. It is important to know that there are other important processes, such as a Social Media Marketing Plan in the cloud. It is common to find companies with their own software instead of applications that already exist on the internet, which makes maintaining their own applications very expensive.
3. Brand recognition: Getting a good digital image opens new business opportunities. Being at the “Top of mind” of a customer means planning and being present where your customer is. There, social engagement is essential
4. Be innovative: A company going through a digital transformation must know that innovation is vital to give extra value to the customer. Any invention or novelty can generate a cost reduction or a profit increase that places you above your competition
5. Big Data: It is part of Digital Transformation, since ranking and exploiting data can help you personalize and improve the service to your customers. All this can help you know:
   • Which has been your best-selling product / service
   • Where it has been requested most
6. Involvement of the management team:For it to succeed, it must start by being applied at the board level. I don’t mean it has to lead it, but it should be an active part of the process and encourage the cultural change and enthusiasm in all employees.

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Benefits of Digital Transformation

Let’s see the advantages of a fully digitalized business model compared with one that is not:

1. Better communication with customers: The company will use the same communication channels as its customers. This way, the information will be more accessible.
2. New opportunities: It makes markets accessible that were impossible before with a traditional business model.
3. Company evolution: The digital transformation process makes it easier to adapt to the cultural, social and political environment.
4. Cost reduction: optimizing internal processes saves time, materials, transport, etc. As a result, tasks are done faster and more easily, reducing costs for everyone.
5. Qualified staff: Today the most valuable people think digital. Digital transformation attracts qualified talent.
6. Better work environment: Training employees increases motivation and, as a result, their performance and involvement.

Drawbacks of applying Digital Transformation

So far we have seen all the good things about applying digital transformation. But like any deep change, it has its problems. Let’s look at some you may find:

• Lack of information for the staff about how to proceed and its consequences.
• Leadership with no knowledge or ineffective leadership.
• Adaptation of suppliers
• Not taking corporate culture into account.

How is Digital Transformation applied?

You have to understand that one of the main goals of Digital Transformation is to give answers to your customers in their environment.

Let’s look at 3 examples:

1. The Internet of Things: Also called IoT (Internet of Things). Its goal is to connect to the Internet elements of the home such as the television, appliances, blinds, lights… All this helps people make life easier.
2. Smart Cities: It is applying the IoT concept of homes at city level. For example, digitalizing street furniture with real-time information about weather and transport.
3. Social Selling: Using social networks to show your users your products in a non-intensive way. In fact, it is a new sales force that avoids the “cold door”, increasing reach.

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Summary

In conclusion, it is clear from all the above that the advantages of having a digitalized business are very big. It lets you reduce costs, optimize your processes and cut times, which increases profit.

On the other hand, it is important to recognize that digitalization is a long-distance race, since companies with an analog culture and way of working face a bigger and deeper change than others, especially in people’s mindset about changing the way they work.