Digital transformation may, at first, sound like a lofty and overwhelming goal for businesses to implement. However, at the core of it all, digital transformation is all about inventions (the creation of a product/process that is completely new) and innovations (improving an existing product/process significantly). Such inventions and innovations in the context of digital transformation are targeted towards a specific goal – and that is to meet the evolving business and market requirements in an increasingly quick-moving digital landscape.
The need for digital integration is synonymous with the constantly-rising expectations of modern consumers. In order for a business to survive such an ever-changing landscape and rise above their competition, digital transformation is key. Recent data tells us that around 70% of companies either have a digital strategy in place or are in the process of creating one – with businesses spending an estimated $7.4 trillion on digital transformation over the next four years.
In this article, we cover the fundamentals of digital transformation for your business. We will also go through examples of the most recent digital efforts from a range of businesses and how such efforts have refined business processes.
Let’s get started!
Capgemini, a multinational corporation that has provided consultation on technology services and digital transformation for over 50 years, is known as the pioneer of digital transformation. They have written the earliest impactful article regarding the idea of digital transformation back in the third industrial revolution (a.k.a the digital revolution).
By coining the term digital transformation they did far more than just introduce a new buzzword. For many businesses it was an early call to action, a herald of coming times when technology would make leaps and bounds like it never had before. Understandably, however, as technology progresses, and as we make our way through what looks to be the tail-end of the fourth industrial revolution, what used to be considered “cutting-edge digital transformation” may be common technological enablements now.
Turnover of industrial revolutions is happening at an unprecedented rate, with the third and fourth industrial revolutions occurring within the same decade! These rapid changes pose threats to existing businesses and their processes – but along with such threats, there are also massive opportunities for growth.
There are four main areas of digital transformation: business process, business model, domain, and cultural. In many cases, more than one of these areas should be the focus of a business in order to create a digital transformation strategy. In its entirety, digital transformation works towards changing one or more of the following aspects:
It’s nearly impossible to cite any recent examples of digital transformation without also touching on recent global events; the COVID-19 pandemic has challenged individuals and businesses alike.
Due to the nature of the pandemic and the resulting government actions, consumers have moved almost exclusively towards online channels for their purchases and for interacting with businesses. Furthermore, many businesses were forced to quickly and securely shift to working from home. Therefore, most of the digital transformation examples in the next section revolve around these recent changes.
Your business may be one of many that were compelled to rapidly adopt the work from home setup. This example of digital transformation is seen just about everywhere, unless your industry is deemed as essential.
In Canada alone, around 47% of employees are working remotely and in the United States, around 41.8% of employees are working from home. It’s not surprising that it is projected that numerous businesses will retain a work from home setup either fully or partially post-pandemic. After all, working from home gives businesses plenty of major benefits such as:
The work from home setup comes with its own set of challenges as well. Along with the needed technological integration (new tools and software services) to support new business processes, there is also the matter of security. With employees working in environments that are beyond the control of the company, data security becomes a challenge. This has led to an increased spending on data security – a trend listed by McKinsey & Company as one of the top 10 accelerated digital transformation responses of businesses due to the demands of COVID-19.
In line with this, around 66% of businesses are also making use of managed IT services like the one offered by Integr8. This all-in-one solution gives your business 24/7 access to expert IT assistants who can help with data security among all other types of IT setups. Moreover, the managed IT services offered by Integr8 will give you access to advanced tools that can detect malicious cyber activity early on. If you’re interested in incorporating managed IT services into your strategy, contact us today and we’ll be happy to discuss your specific company needs.
The increased focus on e-commerce, as well as digital products/services, is indexed by McKinsey & Company as number two on the top 10 accelerated digital transformation responses of businesses due to COVID-19. Here are some examples of such digital transformation responses:
During these uncertain times, consumers have been asked to stay home to stop the spread, and have subsequently seeked alternative ways to access everyday necessities. So, it’s no surprise that grocery delivery services, like Instacart, have grown rapidly the past year.
In some parts of the world, convenience stores have partnered with food apps in order to reach more customers. By doing so, they are able to access mobile delivery solutions that are already in place. An example of this is when Walgreens partnered with DoorDash to provide consumers essential over-the-counter drugs and other health products more effectively.
With travel restrictions in place, a number of hotels have upgraded towards having faster internet in order to accomodate remote workers who are looking for a change of scenery.
In the United States, Red Roof hotels are offering day rates for remote workers. In Canada, a number of hotels are also offering day passes for remote workers. A great example of this is WorkSpaces by Hilton.
Yoga instructors, dance class instructors, physical trainers, psychotherapists, and doctors are now moving to the digital space in order to connect with their clients or patients. As lockdowns continue worldwide, these types of services are unable to run in-person, so being able to pivot to an online forum is integral in helping individuals maintain their health and overall well-being.
It’s truly amazing the scope digital transformation has on our lives. If your business has yet to determine the next steps for digital transformation, this is an amazing opportunity to lead innovative ideas in how your business conducts future work processes.
Let us know if there are any digital transformations your business has taken to improve its internal work processes, or, if you’d like to learn more about any of the services we offer, contact us today!