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Why is Everyone Going Digital, Is There Any Alternative?

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09 Apr 2022
6 min read
TWN In-Focus

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If you want to grow and want your business to see new heights, you have to digitize yourself, or else you will fail if you stick to the same old traditional ways. Learn from Netflix and Amazon, who digitized themselves and are now one of the biggest giants in the world of business. Work Hard, improvise, adapt, and rule the business world! In this article, we will discuss digitization in the business world. #TWN 

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A few years ago, when I was in my adolescence, I wrote an article about how things are getting more digital and how our lives will change. Little did I know that I would have to recreate the article again, and this time it will make sense. We all know our world is going digital, but what does this ‘digital’ mean to us? Is it the growth of OTT platforms, or is it the availability of services? We will talk about this all in this article.

Earlier, “Digital transformation” – or “Going digital” - did not mean anything to anyone and had zero communicative intent, but people loved to throw these phrases just to mean something. While talking to a friend about his business, he said, “Oh yes, my company is going through a huge digital transformation exercise as we talk.” Would you have any idea what he is talking about and what exactly is changing in his company?

It was 2014 when the digital transformation had a simple definition. It was SMAC (Social, Mobile, Analytics, Cloud). Today these four elements are treated with importance.

Social refers to the idea of social networking that is a core part of our interaction nowadays.

Analytics refers to the idea that decision-making is the best when it is data-driven.

Mobile refers to the idea of accessing everything from our smartphones on the go as we like.

Cloud refers to the idea of having the customer systems based in the cloud.

These 2014 objectives are pretty much achieved, but what does going digital mean now in 2022?

Going Digital!

Today every company is becoming more digital with different definitions of it. For some, it’s technology. For others, it is a way of engaging with the customers. And for the remaining others, it is a brand-new way of doing business. None of these definitions are necessarily incorrect. However, such diverse perspectives frequently mess up leadership teams because they reflect a lack of alignment and a shared vision for where the business needs to go. It frequently leads to piecemeal initiatives or misguided efforts, which result in missed opportunities, slow performance, or false starts.

Even as CEOs push their digital agendas forward, it's worth taking a moment to clarify vocabulary and sharpen language. Corporate leaders must have a clear and shared understanding of what digital means to them and, by extension, what it means to their company.

It's fascinating to look for simple interpretations, but we believe that to be relevant and sustainable, digital should be viewed less as a thing and more as a way of doing things. To help make this definition more concrete, we've divided it into three attributes: creating value at the business world's new frontiers, value creation in the processes that execute a vision of customer experiences, and building foundational functionality that supports the entire structure.

Value creation at New Frontiers

Unlocking the value of emerging growth sectors necessitates a commitment to understanding the consequences of market developments and assessing how they may present opportunities and challenges. For example, the Internet of Things is beginning to open up opportunities for disruptors to use unparalleled levels of data precision to identify weak points in existing value chains. Cars connected to the outside world have pushed the boundaries of self-navigation and in-car entertainment in the automotive industry. The use of sensors, big data, and analytics in the logistics industry has enabled companies to improve the effectiveness of their supply-chain operations.

At the same time, being digital means being acutely aware of how customer decision journeys are advancing in general. That includes understanding how customer behaviors and expectations are evolving within and outside of your company, as well as within your industry, which is critical for staying ahead of trends that can yield or fall in value.

Value Creation in Core Business

The next element of going digital is rethinking how to use unique innovations to improve customer service. It is based on an obsession with understanding each step of a customer's purchasing journey—regardless of channel—and considering how digital skills can design and deliver the best possible experience across all aspects of the business. The supply chain, for example, is critical to developing the versatility, efficiency, and speed required to deliver the correct item efficiently and in the manner desired by the customer. Similarly, data and metrics can be used to provide insights about customers, which can then be used to drive sales and marketing decisions. Critically, digital isn't just about delivering a one-time customer journey. It is about implementing a cyclical dynamic in which processes and capabilities are forever changing based on customer input, fostering long-term product or service loyalty. It necessitates an interrelated set of four core capabilities:

  • Proactive Decision Making
  • Contextual Interactivity
  • Real-time Automation
  • Journey focused Innovation

Digital Transformation in Business

A digitally enhanced business adds value to the company. Let’s know about how digital transformation shaped our businesses.

Digital Transformation in Business – Its Origin

As word processors became more affordable and widely available, more businesses began to use them to create documents as a cost-cutting measure. With the invention of the computer, demand for digital solutions arose. E-mails, as well as the storage and transmission of digital information, became more common and widely accepted methods of business communication.

Several factors are currently contributing to the growing need for firms to adopt a digital-first mindset:

  1. Even before the COVID-19 shelter in completing business, workforces around the world were shifting to an in-office/remote hybrid model.
  2. According to a ZDNet survey, 70% of businesses have digital transformation strategies in mind or are developing one.
  3. According to executives, the top benefits of digital transformation are increased operational efficiency (40%), shorter time to market (36%), and the ability to meet customer expectations (35 percent%).

The global marketplace necessitates the adoption of modern digital technology & industries that fail to respond risk becoming extinct.

Areas of Digital Transformation in Business

Going digital has a transformative effect on all levels of your organization. If you raise one aspect and not others, the platforms, tools, and strategies as a whole will fail.

We typically approach digitizing your business in four distinct categories, which can also be thought of as phases. By evaluating and upgrading each of these categories, you can ensure that your company's digital strategy benefits both its customers and its bottom line.

Business Process

The process is at the heart of how a business operates: the tools employed, the channels established, and how it all comes together to ensure that your content streams are organized, formalized, safe, and accessible. AxiomPro, a content services platform that helps you digitize, hold, share, and access content via the cloud, is an example of a tool a business can invest in to begin the digitization process.

Beginning with your business operations as part of your strategic approach ensures that you are building on a solid foundation. Ensure that stakeholders from all departments provide input on the tools necessary to make the changes as well as the processes that will be affected so that the grand project can be implemented across the board.

Business Model

Many businesses discover that once they begin the transformation to a more digital environment, modifications in how they conduct business occur naturally. The transition from a more traditional model to a digital world is happening faster than at any other time in modern business history.

Netflix is an example of this sort of transition. When it was first introduced in 1997, Netflix supplied DVDs directly to customers' mailboxes, saving them extra steps to video stores. As technology advanced and customer preferences and needs changed, Netflix decided to add streaming services ten years later, effectively ending conventional video rental business models.

Domain

Domain transformation is typically the category that causes the most consternation in organizations. Amazon best exemplifies this.

What began in 1994 as an online bookseller has evolved into an omnipresent service that delivers it all from groceries to furniture and, more recently, an extensive array of secure online hosting functionality. Amazon was able to identify the potential of emerging domains in the global market that it could easily transform into while preserving its other core services by increasing its digital trail as it grew.

Culture and Organization

This point is where many organizations begin, which can be a big mistake. The cultural and organizational aspects of this sort of innovation are critical to its success and durability. Adoption and use of new tools and methodologies can either cripple or propel your digital efforts in the coming years.

To effectively execute digital tools and platforms in your organization, the change must begin in the DNA of how you do business, which is why the Business Process is the perfect place to begin.

Is There Any Alternative to Digital Transformation?

As of now, there are no alternatives to digital transformation. The ones who will stick to the traditional way of doing business will perish unless they go digital and try the new normal in the field of business. The number of digital options available to businesses is increasing at an exponential rate that shows no signs of slowing. Simultaneously, digitalization poses a significant threat to current competitive positions and is drastically altering companies' chances of winning the game.

Conclusion

If you want to grow and want your business to see new heights, you have to digitize yourself, or else you will fail if you stick to the same old traditional ways. Learn from Netflix and Amazon, who digitized themselves and are now one of the biggest giants in the world of business. Work Hard, improvise, adapt, and rule the business world!