Digital transformation in the industry provides an opportunity to combine practices and ways of doing that result in new techniques, skills and sources of income. It provides businesses with the opportunity to rethink how to use technology better engage customers and employees, and to meet changing business and market conditions. As technology innovation accelerates, it can be difficult to keep up with new jargon—let alone figure out whether the latest bright and shiny buzzwords are relevant for your business. Copyright © 2020 IDG Communications, Inc. Even if you wish to become a fast follower, if not the leader, then also pace is essential. What is Digital Transformation? SMB Group defines “digital transformation” as: how businesses use digital technologies to create new or modify existing business processes, practices, models, culture, and customer experiences to meet changing business and market dynamics. It offers in-home consultations and installation services, and Total Tech Support contracts provide customers with unlimited support for their devices and appliances, no matter where they purchased them. For instance, Goodway Group, a third-generation family-owned business, has evolved over the past ninety years from a printing press, to a direct-mail marketer, and now, into a digital marketing organization. Importance of Digital Transformation. A necessary disruption, What is design thinking? But Best Buy took a fresh approach to transform its business and differentiate based on providing a, Workforce experiences, workforce visibility. Digital transformation can be defined as the acceleration of business activities, processes, competencies and models to fully leverage the changes and opportunities of digital technologies and their impact in a strategic and prioritized way. Cultural transformation Redefining an organisation’s mindset and culture can be the most important element when it comes to digital transformation. Banks which undertake this transformation can expect reduced costs … Digital transformation is an excellent opportunity to rebrand your offerings. Naturally, digital transformation will bring success to you largely because of its speed and … What are the customer demands and expectations on the business (and the demands on technology to meet business needs)? To support its transformation from print to digital, Goodway Group needed more efficient and flexible solutions for key processes, such employee expense and commission tracking, invoicing, and financial consolidation. We talk with Seth Robinson of CompTIA about the importance of digital transformation, and how to get started. Lift in customer engagement (75%) – One of the first and most important benefits of Digital Transformation is that it leads to a great lift in … Now, the finance team has automated the drudgery, and can spend more time analyzing data and helping Goodway to make better-informed decisions to meet its goals. Business success increasingly depends on putting technology to work to better support your business goals. The company improved delivery times, introduced a price matching program and transitioned to a data-driven marketing strategy to offer customers customized recommendations and assistance. Laurie McCabe brings more than 25 years of experience in the IT industry to her current role as Cofounder & Partner, SMB Group. The Importance of Data in the Digital Transformation of the Water Industry . By Ashley Friedlein November 4th 2013 10:59. Machines are getting also smarter. We can say that businesses who are yet to take a leap of faith towards digital transformation, are already late in this race. A digital transformation can go a long way in breaking down social divides and paves the way for solid leadership. But before you move with your digital strategy, it’s important to understand what it really means and thus how to be able to benefit from it. Prior to SMB Group, Laurie worked in analyst roles as a Partner at Hurwitz & Associates; Vice President of SMB Insights & Solutions at AMI-Partners; and Vice President at Summit Strategies, where her original research of the emerging cloud computing model earned her broad recognition as a thought leader in this area. What is digital transformation exactly? These are followed by age-old problems including a lack of IT skills, time and money to get things off the ground. A solid digital transformation strategy can help you prepare your business and for the digital era. Integration tops the list of complications, followed by difficulty in figuring out which solutions will work best. Artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), sensors, analytics and other technologies are teaming up to create sweeping changes across a wide swath of industries and functions. Digital transformation: the importance of culture. More importantly, they want it fast. ]. 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But the bad news is that it’s still a fuzzy term for many—and most SMBs are uncertain as to how to tackle it. By Mark Edmead, | Get weekly insights by signing up for our CIO Leader newsletter. The company was also spending so much time preparing financials to show historical, descriptive data that it never had the time to focus on how to do things differently and improve processes. Be it in our homes and our offices, throughout industries and society as a whole, technology empowers dramatic … Read on for answers. Several years ago, many people thought that Best Buy could not survive against Amazon. Digital business transformation is the ultimate challenge in change management. When they get new capabilities elsewhere—from round the clock support to fast returns—they want them from your business too. Here, he talks about how to embrace digital communication transformation and how to achieve quick results. It provides businesses with the opportunity to rethink how to use technology better engage customers and employees, and to meet changing business and market conditions. Hi, I’m Heather Taylor from Simplicity 2.0’s podcast. Digital transformation offers a number of advantages and options, including inventory management, detailed insights, enhanced real-time customer interaction, increased productivity, more reliable financial forecasting, more assertive business decisions, and improved resource allocation. Most of us are familiar with large enterprise digital transformation stories, such as Best Buy. The number one choice was “improving the experience of customers, ” followed by growing revenues, improving differentiation, and reducing costs. But transformation is not just about technology innovations and their disruption on the business. Digital transformation refers to the use of digital technology to better serve customers. When you talk about data and Digital Transformation of the Water Industry the first things that comes to most people’s minds is concepts such as “Big Data” and “Data Mining” in reality the importance of data to the water industry is so much more. Learn about three driving forces of digital transformation – technology, people and business – and how organizations can benefit from creating a customer-centric business. Are they easily adopted or is the organization experiencing difficulties integrating this new technology? Here are some of its key benefits: It reduces costs as a result of time savings in processes. Ideally IT spending is driven by the need to meet business requirements. The world’s obsession with the latest technology, social media and apps revolve around a desire for an easier life. Do these innovations brings value to the organization? This brings us to the next factor: customer behavior. To keep it simple, it is the integration of digitalization into every area of banking. It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. Note that digital speed is as much as 5 times faster than a traditional business. |. However, due to the rise and dominance of Apple and Android, they ended up falling behind and subsequently exiting the business. What challenges do you face? Business leaders must constantly challenge their organizations to ensure this change can unlock productivity gains and significant competitive advantage all while delivering exceptional customer experience. But Best Buy took a fresh approach to transform its business and differentiate based on providing a better customer experience. Customer expectations are being reshaped by digital innovation. In the next post, I’ll discuss how to start planning for and executing on a digital transformation strategy. Some prefer to use the termdigital business transformation, which is more in line with the business aspect of the transformation. Digital transformation also means more than simply asking “How can we do the things we do today, only faster?” Instead, it means questioning “How do we need to adapt our business processes to keep pace with new market realities, and how does our technology strategy need to change to support this?”. Laurie’s nine years at Digital Equipment Corporation, including her last role as Director of Market and Competitive Intel, Sage Intacct300 Park Avenue, Suite 1400San Jose, CA 95110, Sales Inquiries: 877-437-7765Customer Support: 877-704-3700Partner Support: 866-201-9401, © Copyright 2019 to 2020 Sage Intacct, Inc. | Privacy Policy | Site Map | Home, © Copyright 2020 Sage Intacct, Inc. | Privacy Policy | Site Map. Today, we’re going to test an idea. What is digital transformation? To further clarify, the study asked decision-makers about their broad strategic priorities over the next year. Goodway Group switched from entry-level accounting and spreadsheet solutions to Sage Intacct to automate these workflows, streamline project billing, and improve gross profit visibility across campaigns. It is also about how these technological innovations are adopted and used. Copyright © 2016 IDG Communications, Inc. In a study of 40 digital transformations, companies that focused on culture were 5x more likely to achieve breakthrough performance than companies that neglect culture. Most of us are familiar with large enterprise digital transformation stories, such as Best Buy. There is a lot of talk at the moment about this process, where an organisation overhauls its capabilities in order to reach digital enlightenment. SMBs know how important it is to start planning for digital transformation: More than 80% agree that technology is reshaping their industries, businesses and workplaces. Technological innovations leads to what we call technology disruptions. However, the overselling of the concept, as Gartner highlights, is approaching the trough of disillusionment. The good news is that the percentage of SMBs say they’ve heard of digital transformation and understand what it means has grown from 33% in 2017 to 57% in 2019. This integration leads to fundamental changes in how the financial institutes operate and deliver value to their customers. Another digital transformation success story comes from Nokia, a once dominant force in the world of mobile communications. The list of reasons could go on, as digital technology has many benefits for businesses, but the best way to know them all is by going digital now. Listed are a few points that state the importance of digital transformation: Enhanced customer experience; With increasing competition around, it is tough for … Reminds me of what I used to tell my clients when I ran a software development company: "You can get it done cheap, done well, or done quickly. These are performance orientated benefits and show that digital transformation is proven to increase productivity and helps companies enhance customer experience. Digital transformation — the use of technology to radically improve performance or reach of enterprises — is a hot topic for companies across the globe. Importance of digital transformation. Best Buy now focuses on advising customers, not just selling to them. In the simplest terms, DT is all about using various forms of digital technologies so it helps the customer (in this case the patient) lead a better life. And if you are not embracing it, should you? It impacts not only industry structures and strategic positioning but it affects all levels of an organization (every task, activity, process) and even its extended supply chain. Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. If your business is spending so much time just trying to keep up with the daily grind that you have no time prepare for the future, the wear and tear on the business will eventually slow down growth or even bring it to a halt. A Forrester Consulting research study commissioned by Accenture Interactive (click here for report)  found that the key drivers of digital transformation are profitability, customer satisfaction, and increased speed-to-market. A quick Google search will identify “digital transformation” as one top buzzword out there today. CIO Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices as well as improving their use of traditional technologies … The take-away from this study is that in a digital business transformation context, all these aspects: business functions, processes, activities, assets, models, and activities are interconnected.This is an essential aspect of digital transformation: the inter dependency and inter-contentedness of everything. In my experience, this is  easier said than done. This is imperative if you are expecting the workforce from all departments to come together and embrace change. As a result, the primary focus of digital transformation is to use cutting-edge technol… A solid digital transformation strategy can help you prepare your business and for the digital era. The Need is Real, But Getting Started Can Be Hard. This is the first post in a two-part blog series sponsored by Sage Intacct that examines digital transformation for SMBs. Digital Transformation is a trend that can be materialized only when the organizations can rethink business processes. Digital transformation is often viewed as an implementation of digital technologies into all areas of business in order to build more sustainable relationships and better understand the needs of … These digital business transformations are influenced/driven by the following factors: Technology innovation, customer behavior and demand, and external environmental factors. The experience of customers is at the heart of digital. Subscribe to access expert insight on business technology - in an ad-free environment. Is your organization embracing digital transformation? And finally organizations have deal with external influences such as regulatory laws, changing economy, market competition, and business partner demands. SMBs’ recognition of and desire to transform their businesses for a digital future is real, but the vast majority are still unprepared or underprepared to act on it. Organizations need to evolve to address the changing business landscapes. Employees increasingly expect to use more powerful, easy, consumer-like tools, and always on information access to get their jobs done more efficiently as well. Business leaders want IT to be focused on business results, innovation, and continuous improvement. Vendors must create more accessible on-ramps to help more SMBs move from aspiration to execution. As they embark on digital transformation, many companies are taking a step back to ask whether they are really doing the right things. Digital transformation is just as relevant for SMBs. Digital transformation is the process of using digital technologies to create new business processes, culture and customer experiences. A flourishing digital culture is a tremendous asset to any digital marketing team, and can help facilitate everything from the ready acquisition of new digital skills amongst team members to the bettering of the digital environment in … Only 24% have started executing on a digital transformation strategy, and just 19% say they have well-defined plans in this area. What are your thoughts on digital business transformation? The participants were: Gautam Dutta, Senior Director, Marketing, Siemens Digital Industries Software, Jigar Mehta, Head, Analytics & Financial Controller, Aditya Birla Health Insurance, Ramanathan … Simply stated, it’s about identifying how you must adapt your business to drive customer loyalty and maintain a competitive edge in the digital age. Several years ago, many people thought that Best Buy could not survive against Amazon. Mark Edmead is an IT transformation consultant and trainer. Laurie has built widespread recognition for her capabilities and insights in the small and medium business (SMB) market in several areas, including cloud computing, mobile solutions, business solutions, social networking and collaboration, and managed services. The time is now to think, plan, and build a strategy to transform workflows and processes with modern technology solutions that will empower your business with the capacities and agility necessary for success in the digital age. People want valuable solutions to their problems. It decentralises production by facilitating mobility and remote communication. SMBs currently investing in digital transformation are 1.9 times more likely to forecast revenue increases than their counterparts with no plans for digital transformation and 1.3 times more likely to forecast increases than those planning for digital transformation. Pick two out of three.". Over the past 28 years, he has provided IT transformation and business improvement services that align information technology with business goals to drive bottom-line performance and growth. The move paid for itself in less than 3 months—and since deploying Sage Intacct, the company has grown twice as fast than its finance headcount. From business processes and models to business activities and each single activity of the organization. All of them will lead to increased profitability and success. [ Get an inside look at 10 real-world digital transformations at today's leading organizations and find out what digital transformation really means. Capgemini and MIT Center for Digital Business in a three-year study defined an effective digital transformation program as shown in Figure 1 below: Capgemini Consulting Digital Transformation. Today, there was a webinar hosted by Dun and Bradstreet on the ‘Importance of data in the digital transformation strategy’. Regardless of size or sector, one of the most important changes a business will undergo is ensuring they have the choice to send their communications via paper or digital channels. Importance of Digital Transformation “ Digital Transformation ” is becoming more than just industry buzzwords – it is the embodiment of industry-changing elements that impacts workforce efficiencies and … Today, Best Buy is reaping the benefits, with adjusted earnings per share surging to a record $5.32 in fiscal 2019. Digital transformation is imperative for your company’s success. Customers demand increased technological capabilities combined with the desire for ease of use. What is Digital Transformation—and Why is it Important for Your Business? This fundamentally changes how you operate and provide value to your customers. Change is hard, but thinking and planning for digital transformation is critical to ensure viability and growth. Digital business transformation is the ultimate challenge in change management. The whole idea of a digital transformation has to be communicated well within an organization. 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