Digital transformation, or DT, is a total transition of an organization from analog to digital. In other words, it’s the application of digital technology in every aspect of the business, resulting in radical changes to how the business operates and how it engages with customers.
Digital transformation helps companies to remain profitable and competitive, keep pace with evolving modern technologies and meet high consumer expectations.
There are multiple aspects of a business that have to transform.
- Since companies need to make sense of big quantities of data they are integrating digital analytic tools into every part of their business
- Cloud computing gives a company quick access to its software, new functionalities and updates, as well as the opportunity to store data outside its own data center;
- Collaborative tools like file-sharing, co-working applications, and even mobile devices allow employees to work remotely and still get things done.
- To retain and gain clients, companies need to integrate tools and technologies focused on developing personalized and rich customer experience every where from in stores, on websites, on social channels and even in their offices
The impact of digital transformation on businesses is huge and keeps growing:
- 27% of senior executives rate digital transformation as being ‘a matter of survival’ (1); Block Buster did not embrace digital and Netflix took them out.
- 51% of senior executives believe it critical to implement digital transformation in the next 12 months (2);
- By the end of 2019, digital transformation spending will reach $1.7 trillion worldwide, a 42% increase from 2017 (3).
Netflix is a vivid example of digital transformation. The company started as a mail-based DVD rental company in 1997. Today, it’s an online video streaming service that delivers customized offerings based on each customer’s preferences.
If everything around you is digital, then your business must be digital as well.