What is Digital Transformation? Steps to digital transformation of businesses in 2021
In recent times, the phrase "Digital Transformation" has been mentioned a lot in the media. However, for many businesses, this is still a relatively new concept and they are not really ready for this process. So what is digital transformation? how is the business's digital transformation process? What are the benefits for the business? How does this process affect the business results of businesses?
What is digital transformation? - how to understand correctly?
Digital Transformation, which stands for Digital Transformation, is a trending trend all over the world right now. At businesses, digital transformation is considered one of the important goals. No matter what industry you operate in, from retail to finance to healthcare, technology is launching projects to improve customer experiences, increase efficiency, and increase business revenue.
Digital transformation is a commonly mentioned and used phrase in the 4.0 technology era, but it is difficult to give a standard definition of this term. Applied to each field, digital transformation will bring different ways of operation and results.
Gartner - the world's leading information technology research and consulting company - said: “Digital transformation is the use of digital technologies to change business models, create opportunities, revenue and new value”. Meanwhile, for Microsoft, digitization is about rethinking how organizations bring together people, data, and processes to create new value.
The concept of "digital transformation" is applied by FPT in the technology field and is defined as follows: "Digital transformation in an organization or enterprise is the process of changing from a traditional model to a digital enterprise by applying new technologies such as big data (Big Data), Internet of things (IoT), cloud computing (Cloud) , .. changing operating methods, leadership, working processes, company culture .”
Either way, Digital Transformation is considered a popular trend in the booming Internet era. This is a logical and effective way of applying digital technology to all aspects of a business. The right change and the right direction will be the "ladder" to bring businesses to new heights.
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Benefits of digital transformation for businesses
There is no denying the important role of digitalization for businesses in the era of integration.
When businesses are aware of the necessity of this transformation, they will have more opportunities to approach and "break through" with open development potential. All activities in the enterprise will change completely, increase cooperation efficiency, and optimize productivity to achieve business goals, bringing many good values to customers.
Clear and transparent information
When businesses conduct digital transformation, employees in the enterprise will be able to access a huge source of data. Information about process efficiency, channel conversion rate, customer lifetime value, etc. is transparent for all employees in the business to track.
Not only allows businesses to arrange data sources in a logical and orderly manner, but digitizing businesses also allows "active and full control" with their data sources. Thanks to that, the manager will be convenient, accurate and quick in each decision.
Increase market competition among businesses
In the midst of an era with the technology industry taking the throne, digital transformation has become a matter of survival for businesses. This is no longer a choice but a factor that maintains and determines the future and existence of the organization.
"The marketplace is like a battlefield", besides specific revenue, businesses also "underground competition" with each other in terms of innovation, speed or adaptability. Invisible, digital transformation has the "motivation" to accelerate and dominate the market. Being well aware of the benefits from digital technology, most businesses take it as a goal to strive for digital transformation and increase value with customers.
To convert effectively, not only "go fast", businesses also need to "go right". Choosing the right compatible technology solutions, businesses will go far, improve the experience, and meet the needs of customers now and in the future.
Give your customers the best experience
Technology solutions will help businesses easily check access history, specific information about data, and history of customers. As a result, businesses can understand, capture needs and create solutions that make customers satisfied. Without digital transformation, businesses will face a lot of inconvenience in business, even lose a large number of customers because they do not meet their wishes.
Eg:
According to Forbes.com : just 1 second faster to load, sales will increase by $7,000 compared to $ 100,000 / month revenue.
Accordingly, slow loading speed will be difficult to attract customers, thereby leading to low revenue. Therefore, the principle that "1 second delay can lose up to 7% of revenue" has always put pressure on businesses in the 4.0 revolution, taking technology as the key. The first seconds when the browser starts spinning have more impact on revenue than you think!
One of the solutions chosen by businesses today: to increase revenue, businesses need a stable website. Therefore, "handing over" the website to a reputable hosting provider is one of the "bullet points" that cannot be ignored in the process of business digital transformation .
Create connections between departments
Thanks to digital transformation, employees of departments in the company will exchange and update each other's information more often. With an automated administration platform, employees can easily share multiple sources of information and documents. Not only "get along" with each other at work, colleagues also have the opportunity to care and support each other more in life.
Increase efficiency – reduce costs
Any spending by the business affects the overall profit. Digital technology will help businesses save a lot of expenses that you did not expect, contributing to retaining a lot of profits for the collective.
For example: In the past, to check and review a product, it was necessary to have the actual product, "holding it in your hand, seeing it with your eyes", new employees could evaluate. This causes businesses to spend a lot of money and effort for each "evaluating" product. Digital transformation 4.0 will help businesses with this burden: in the process of perfecting the product, at any time, employees can also see, evaluate, and observe the product visually on digital images.
In addition, data in the digital transformation era will be stored on the cloud technology platform and can be managed by storage solution providers outside the enterprise. As a result, employees can save time and devote their time to other projects. Less pressure, less anxiety will bring much better work efficiency.
Without digital transformation, businesses can still automate processes manually. However, this process takes a lot of time. Instead, human resources can be spent on other jobs that create more profits, positively affecting the productivity and operations of the company.
The business's digital transformation process
If many years ago, digital transformation was considered a rather vague concept in Vietnam. However, in the current 4.0 era, digital transformation is a smart way for companies to operate efficiently and earn high profits. In order for a business to transform digitally, it is necessary to perform the following basic steps:
Step 1: Prepare the data
First of all, businesses must really understand the company's desires, orientations and goals as well as specific limitations and areas that need to be digitally transformed. It can be human resource management, customer management, process or work. When the direction is clearly defined, the new business can well prepare the next content.
Then you need to prepare a sample data source. This will be an important resource in the digital transformation process.
Step 2: Choose the right technology platform
Based on the existing goals and data, enterprises will make criteria to build or select compatible management platforms.
A suitable management platform will replace a smart operator with productivity, reducing costs, effort and time. However, if choosing the wrong platform, businesses will face many difficulties and even loss of human and material resources.
At the step of choosing a platform, businesses should invest in communication within the organization. When equipped with solid knowledge, the company's personnel will quickly grasp and the implementation process will take place more effectively.
Step 3: Digitize the data
Data is a valuable part of the digital transformation process. If you know how to take advantage, the data will be the springboard to make the conversion faster. Besides internal company data, leaders should survey and pay attention to the data of their partners and competitors to build an overall view, then delve into detailed data.
Digitizing the data businesses need are: data about personnel, customers, processes, work ...
Step 4: Digitize the policy process
Complete data digitization, policy digitization including digitization of internal processes, personnel regulations, business operation policies..
To digitize processes, businesses need to have their own processes available. At that time, all documents and information of the company available will be easily digitized.
Step 5: Set up a reporting system
Once all of the company's information has been digitized, the final step is to build a thorough reporting system. Details of this report revolve around human resource reports, marketing reports, sales... These reports need seriousness, continuous construction and improvement.
Wish your business a successful digital transformation, bringing many breakthrough business results!
FAQs on Digital Transformation
What do businesses need to prepare to pass arguments?
Digital transformation is no longer a force, but has become a prerequisite for maintaining a strong business in the digital age. In order to transform, businesses need to prepare as follows: ready in terms of leadership understanding about the company, fully in terms of organization and personnel and finally ready for technology.
What is the difference between digital transformation and digitalization?
Digital transformation and digitization together apply technology for business development. However, if digitization is the pure analog-to-digital conversion of existing data and documents, then data transformation is the use of that transformed data to analyze, change the transportation process. provide appropriate strategies and business models for businesses.
In simple terms, you can digitize a document (a report) but digital transformation for a factory is the standardization of your organization's data collection and workflow processes.
Why do businesses need digital transformation this year?
By the end of 2020, the digital transformation process has been applied by a large number of large enterprises. The competition between businesses is increasingly fierce. If you do not innovate and update, you have implicitly accepted that your business is falling behind. Therefore, 2021 is the right time for small and medium enterprises to learn, learn, absorb and strongly apply digital transformation for your own business.
Besides, the impact of the COVID-19 epidemic, the constantly changing needs of customers, ... are also the reasons why businesses strongly choose the "digital transformation" path for themselves.
Does digital transformation exist negatively?
Everything has both positive and negative sides, it is important that we promote the right side of the problem. Digital technology was born from great research but also has many potential harms, such as scams, terrorist websites, applying technology for bad purposes, ...