In the face of an ever-changing world, business should not only invest in new technologies, but also has to use them. And depending on how well these new technologies are implemented in the company’s processes, they will bring so much or so little benefit to the company. How to make the most of digital transformation? Read on to find out.
The fourth industrial revolution (Industry 4.0) has already arrived and the sooner we join the trend, the more we will be able to take advantage of it. Most companies already use cloud-based solutions, but that does not make us Industry 4.0 ready. However, what is interesting, according to According to the Deloitte report, cloud solutions are given as those with the greatest business potential, ahead of the Internet of Things (IoT), mobility and artificial intelligence.
However, by using only a few online tools, we will be like a horse-drawn cart with a small additional motor. To drive a car, we have to change a lot more.
This is where digital transformation comes in – the process of transforming business models, optimizing processes in the organization, focusing on creating a digital work environment and engaging employees and customers in various communication channels.
The main goal of digital transformation is:
- increasing efficiency,
- better risk management,
- achieving significant savings.
In addition to the main business goals, digital transformation will significantly change how we do business, how we deliver value and benefits to customers, as well as organizational culture.
Previously, the popular terms were digitization and computerization, but they are much smaller.
Digitization means the process of transferring content / data to digital form, and computerization is the implementation of IT tools to the company. On the other hand, digital transformation is the next level, which consists in modifying and supplementing business models and business processes with the use of new technologies as an inseparable part of them.
Moving from digitization to full digital transformation.
Even though digital transformation has been around for several years (including the fourth industrial revolution), it is never too late to start. On the other hand, the sooner we start, the greater a competitive advantage we will gain or will not allow our competition to escape too much.
However, it is worth being aware that not every transformation will be successful, because it is an open-heart surgery rather than a plastic surgery. According to the McKinsey report, only one in three transformations is fully successful and brings the company long-term profits. That is why it is so important to surround yourself with people and partners who understand new technologies. But more on that in a moment. Let’s go back to the beginning.
Why is digital transformation needed?
New technologies are a natural competitive advantage and not taking advantage of them will slow down the company’s development and may also cause business problems. Digital transformation has many minor benefits which, when combined, contribute to the company’s success:
Currently, most of our business processes are based on traditional operation with the addition of IT tools in several places, which are more of an overlay than an integral part of the business. Obviously, the more innovative, younger or more modern a company, the more IT tools it uses and relies heavily on, but they often still operate in a traditional way (e.g. we still use paper instead of electronic versions).
When we design business processes from scratch, wanting to optimize them as much as possible, focusing on efficiency and the human aspect, we can achieve much more than before. Therefore, digital transformation is not only about adding new tools. It is a complete remodeling of how we operate now to take full advantage of the potential of IT tools and the possibilities they offer. A good example is the Alcomex company, which by introducing the ERP enterprise management system, has taken its efficiency to a new level.
Every change in the company is an investment that has to pay for itself over time. The deeper the changes, the greater the costs, but also the greater the expected return on investment (ROI).