Technology has, without a doubt, improved our lives in many ways. Terms like digitization and digital transformation have become buzzwords and quite popular ones at that. Companies worldwide are investing significant amounts of time, effort, and money into digitization and digital transformation. What do these terms mean, and how do they impact your business?
What is digitalization?
Digitalization refers to the process of improving business processes by leveraging digitized data and digital technologies. According to Gartner, digitalization is using digital technologies to change a business model and provide new revenue and value-producing opportunities.
Many businesses are turning to digitalization to streamline management and day-to-day operations. The shift is driven by a new wave of digital solutions that help businesses, regardless of their size, be more efficient and strategic. It helps businesses become more productive and efficient while cutting down on operational costs.
What is digital transformation?
Digital transformation refers to business transformation enabled by digitalization. Digital technologies are used to create new and/or modify existing business processes, culture, and customer experiences to cater to evolving business and market needs.
Digital transformation may look different for different companies. A single definition of digital transformation may not apply to all. In simple terms, digital transformation can be defined as integrating digital technologies into all aspects of a business, fundamentally changing the way the business operates.
If you are familiar with digital transformation, you may have also heard of the term industry 4.0. Industry 4.0 can be considered as a combination of digitization and digital transformation. It is a new phase in the Industrial Revolution with an immense focus on automation, interconnectivity, machine learning, and real-time data. Industry 4.0 is also referred to as smart manufacturing, combining production and operations with smart digital technology, machine learning, and big data to create a better-connected and more holistic ecosystem for companies involved in manufacturing and supply chain management.
How does it change businesses?
Businesses take on digitization and digital transformation for numerous reasons. The number one reason is survival. In a competitive market, a business’s ability to adapt to evolving market requirements and customer expectations is critical. According to IDC, 75% of all organizations would have comprehensive digital transformation implementation roadmaps by 2023. If you are not investing in digital transformation, chances are you will fall behind your competitors who are transforming their business to adapt to the digital world.
Digital transformation can benefit your business in numerous ways. It can help streamline existing processes and increase overall efficiency. It also promotes an environment for growth, and by allowing your workers to capitalize on their efficiency, digital transformation also empowers the workforce.
Digital transformation trends to watch out for
Thanks to a changing technological landscape, organizations are leveraging disruptive technologies to enhance productivity and business growth and deliver value to customers. With technology being everywhere, there are several digital transformation trends to watch out for.
Virtual desktop infrastructure
Virtual desktop infrastructure is shaping digital transformation by allowing employees to work, no matter where they are. VDI is a form of desktop virtualization that empowers employees to work and access computer applications whether they are in the office or at a remote location. With more and more employees working from home, VDI is a convenient way to prevent business disruptions caused by unforeseen events.
Automation can increase the pace of digital transformation, and businesses are looking to automate business processes and ERP in the future. Technologies like Artificial Intelligence, Machine Learning, and Robotics are being integrated into businesses increasing business growth and agility. A process like data collection, which can be very time-consuming, can also be automated using ethical python web scraping, saving time while providing high-quality content.
In the wake of the global pandemic, businesses are struggling to manage business operations from homes and remote spaces. The 5G network provides incredible speed and connectivity, catering to the growing demands of reliable connectivity and bandwidth. 5G will accelerate digital transformation by enabling better IoT connectivity, digital collaboration, and enhanced user experience.
Customer Data Platforms
Data drives the customer-centric business models of today. Without good infrastructure, organizations can struggle with gathering and managing huge volumes of data. Customer data platforms collect data from different sources, organize, tag, and make the information usable. Data is abundantly available nowadays and is a potential ingredient to enhance productivity, efficiency, and growth. CDPs are all set to revolutionize digital transformation.
XaaS or Everything as a Service is a cloud service delivery model that offers different products and services across the Internet. The XaaS model can streamline digital transformation by simplifying technology deployments and enhancing business agility.
Digital transformation, in simple terms, is reimagining how businesses operate in this digital age. As businesses shift from paper to spreadsheets to smart applications, they have the opportunity to reimagine how to conduct business and engage customers with digital technology on the side.
About the Author
Christoph is a code-loving father of two beautiful children. He is a full-stack developer and a committed team member at Zenscrape.com – a subsidiary of saas.industries. When he isn’t building software, Christoph can be found spending time with his family or training for his next marathon.