Digital transformation has been on the agenda of organizations for years, and 2019-2020 is predicted to be a crucial time for leaders to plan for and implement it across industries. In fact, a recent IDC report on ‘State of Digital Business Transformation 2018’ says that 89 percent of industry leaders have adopted or have plans to adopt a digital-first strategy. As per the same report, almost 44 percent of organizations have already started implementing a digital-first approach to business processes, operations, and customer engagement; 18 percent are executing their digital plans and making process, operational, and technology changes on a department and business unit level; and seven percent of companies have already fully implemented their digital-first approach and are in the maintenance phase. Now the question arises, “Why are businesses going ga-ga over digitization?” The below section talks about this in detail-

The Key Drivers of Digital Transformation

Connecting Digital Transformation to Efficiency: Replace Traditional Workflows

Manual data entry and process bottlenecks cost a lot to organizations leading to extensive manual labor and increased turnaround time of the operations as well as the loss of efficiency.
With digital transformation, all these limitations can be overcome. When you replace traditional processes with automated workflows and examine your current processes, the results will speak for themselves.

Data-driven Insights

An important aspect of going digital is that you can track the data and map your progress. These results allow businesses to plan their strategies accordingly. Using the data and insights that are available about the customers, you can provide a personalized customer experience, which the world demands today.

Improved Reach

We’re living in a digital era where consumers are referred to as ‘kings’. Consumers always have the upper hand while choosing products because the information reaches them through different channels and without any time barrier. It means that they can receive information on various products at any point in time with just a few clicks.

To succeed in such a challenging environment, your business must be omni-present and have a wide reach. Digital transformation gives you that reach, thereby improving the bottom-line of your business.

Improved Profitability

When you work in a structured and efficient manner that helps you make better decisions and provide improved customer experience, your profitability is bound to increase.

Digitization is the missing cog that will help you create such an ecosystem and propel your business to new heights.

While these were some of the standard reasons, there is one more crucial factor that I haven’t talked about and it is the growth mindset. This is especially true in the present cut-throat market where innovation and continuous improvement are the biggest prerequisites for success. In fact, as per a recent report titled, “Growth Mindset Culture,” this factor is one of the biggest drivers for organizations adopting digital transformation, with nearly 38 percent of organizations supporting this notion.

The Four Pillars Driving Digital Transformation:

1. Public Key Infrastructure (PKI) for Security

Once you adopt a digital business strategy, then you rely more on electronically or digitally transferred information or data. As enterprises are increasingly under the threat of cyberattacks and malicious cyber activities, it is important for you to adopt a safe technology to protect your company data.
Public Key Infrastructure or PKI is one technology that will never let you down when it comes to protecting your business from cyberattacks. PKI has a set of procedures and policies for establishing a secure exchange of information. It enables individuals and systems to exchange data over potentially unsecured networks like the Internet and to authenticate and verify the identity of the party they are communicating with. Equipping your business during the digital transformation journey with PKI will always give you a sense of security and is advisable.

2. IoT for Flexibility

IoT plays a vital role in an organization’s digital business strategy. IoT revolutionizes how companies track and manage their inventory, further enhancing remote work and improving efficiency and productivity at work. It helps in gaining operational efficiencies, promoting cost saving, encouraging stronger customer engagements, and providing a competitive advantage.

3. Big Data Analytics for Intelligence

Big data has been a game changer for small and large organizations alike. It is a prime element for organizations in their digital transformation journey. Data is the new oil, but unstructured data is of no use to anyone. Big data/analytics helps organizations harness their data and use it to identify new opportunities. That, in turn, leads to smarter business moves, more efficient operations, higher profits, and happier customers. It also drives process efficiencies and employee productivity, which are the primary goals of digital-first initiatives.

Also there is the Blockchain technology, which is most likely to bring in the most transformative changes in business in the coming years. In fact, according to a recent report by IDC, Blockchain will have a huge impact on digital transformation by 2021. At present, Blockchain is a part of the digital transformation strategy for 61 percent of the enterprises. Digital transformation is one of the complex challenges in enterprises, and the adoption of appropriate technologies like blockchain makes the transition easier.

Conclusion

Successful digital transformation also requires agile employees who are ready to adapt to the changes, reskill, and upskill. The reality is that technology is transforming the business landscape, and digital transformation is no longer a choice but a necessity to stay relevant and competitive in today’s world.