Digital Transformation: Why It’s Important For Businesses

What is digital transformation? The answer might vary depending on who you ask. But what many business owners have in common when it comes to digital transformation is that they recognize its impact but are hesitant to undertake it. In this article, we talk about the advantages of digital transformation and how to go about building a solid digital transformation strategy for your business.

What is digital transformation?

That’s a tricky question. Here’s a very general answer:

Digital transformation is a process of implementing digital solutions into your business to create a better experience for your customers and employees.

Sounds relatively simple, but that’s where the trick lies.

Is it enough to transfer your documentation from paper to digital formats? Maybe use instant messengers for communication instead of having people wander around relaying messages and assigning tasks in person? Communicate with customers via email?

The answer to all of the above is no, it’s not enough. That’s not what digital transformation is.

Difference between Digitization, Digitalization, and Digital Transformation

“Digital transformation” is a hot mess of a term in business. Everyone understands it differently and many confuse digital transformation with either digitization or digitalization (or both). Here’s a very short explanation of the three:

• Digitization is transferring data from physical form to digital. This essentially means switching from paper documents to digital ones.
• Digitalization is the use of digitized data, so it’s a process that naturally follows digitization. It also includes the use of digital means of communication and scattered work-related tools. Digitization and digitalization combined make businesses less cluttered, but that’s about it.
• Digital transformation is the process of implementing digital solutions into all areas of a business, from customer communication to manufacturing to management. Such a fundamental change leads to a major shift in operations.

Want more about digital transformation? You can check the full article here: Digital Transformation: Why It’s Important For Businesses