Digital Transformation: How to Make Your Way Through the Cloud Are you built for the cloud and making the right decisions?
By Justin Malonson Edited by Russell Sicklick
Opinions expressed by Entrepreneur contributors are their own.
The business landscape is changing rapidly — and not just because of the digital revolution. The world is moving away from a linear build-ship-sell model to an agile build-ship-innovate one, and organizations are increasingly relying on cloud computing.
What is digital transformation?
Digital transformation is the process of applying systems of information and communication technology to collect, manage, preserve, share, analyze and use data to improve outcomes. Digital transformation requires a change of mindset. Values of the past are no longer applicable in today's world. Companies that have the willingness to learn will be more likely to succeed in this new era.
The digital transformation of public services is a subset of digital transformation. It relates to the adoption and use of e-government, e-democracy, e-business and e-services by public organizations. The world has become increasingly digitized over the past decade. It is estimated that by 2023, 100 billion devices will be connected to the Internet. Management processes such as design and construction are being transformed through digitalization. A majority of people now prefer online transactions such as a digital passport instead of the traditional paper-based ones.
How does digital transformation work?
Digital transformation is a natural and ongoing process. It happens when your business realizes the benefits of digitizing their products and services in order to stay competitive. Digital transformation has helped businesses take full advantage of the power of the digital economy. It helps them use data and analytics to make better and smarter decisions and stay current in an ever-changing market. In the past, businesses had to rely on a more traditional approach to business processes and systems. Now, they've embraced technology to optimize all the way from the top to the bottom, including the supply chain and other processes.
How does a digital transformation affect you? The best digital transformation in the world doesn't mean anything if it isn't meeting the needs of your customers. If you're able to follow trends, understand and meet customer needs and improve the customer experience, you'll be able to get the best results from your efforts. Digital transformation is an exciting prospect that isn't going to be easy. It requires a dedication to continuous learning and investment, with the support of your digital partner, to achieve the best results possible.
Related: Reshaping Your Business to Meet the Digital Age
Why do you need to transform your company?
The answer is simple. The world has changed, and so have the rules of the game. Globalization and technological advancements have rendered obsolete some of your business practices and processes. This, in turn, has made it more difficult for you to stay competitive. So, you have to make some tough decisions. You have to take a bold step and transform the way your organization operates. This is not a choice. It is a necessity. Whether you are thinking about building new business capabilities or optimizing existing ones, the first step is to define your key business objectives. You then have to analyze how your existing processes and systems can help you achieve these objectives. The last step is visualizing a better business process to help you deliver stronger results.
In today's digital world, it is very easy to create a workflow and make your business processes more efficient. You just need to follow a few proven steps. Needless to say, the process is easier said than done. The technology and tools you use can make or break the entire process. That's why it's important to choose a software that will get the job done. Digital transformation is rewriting the rules of business and industry.
Cloud computing gives organizations access to more computing power than they will ever need. It's a change that will affect how we work, communicate and even think. The only way to properly prepare for the change is by following a proven plan. You can't force your employees to embrace the new technology. They need to believe that it will make their lives easier. They need to be on board with the change and they need to see how it can help them achieve their goals. Without that, it won't matter how much you spend on technology. You'll still fail to become a digital business and will just waste your money. In order to avoid that fate, you need a well-defined cloud strategy that incorporates the needs of your employees in addition to those of your customers. That's how you can take advantage of cloud computing and transform your business into a digital enterprise.
Related: Why Digital Transformation is More About People Than Technology
What are the benefits of transforming your company?
The main benefit of digital transformation is the ability to have access to all the data you need when you need it. This allows for more accurate decision-making. You can also increase your company's agility, allowing it to be more responsive to customer needs. Another benefit is that with digital transformation, your employees can work remotely without being in the office. This provides a better work-life balance for everyone.
How can you maximize the benefits of digital transformation? You need to train your staff on how to effectively use the technology that's available. They should be able to make the most out of your company's new data resources. Becoming a digital company offers many benefits. The biggest advantage is that you can remain competitive and stay ahead of the curve. You can also get access to new markets and maintain a strong position in your industry.
Digital transformation also offers some great cost savings, such as reducing costs on travel and marketing expenses. The benefits of a digital transformation are numerous. The first major one is a company's ability to become more competitive. With the right strategy, a business can bolster its customer service, grow revenue and cut costs by utilizing digital technology. Other positive results include improved employee productivity and better access to information.
It's now easier than ever to transform your company to a digital enterprise. This is because there are now many resources available that can enable you to make this change. One of the best ways to create a transformation plan is by following a proven methodology. Not only will this help you create a roadmap, but it will also ensure that everyone in your business understands how the changes will make a difference for them and their team.
Related: Why Digital Adoption Deserves Center Stage
How does your company start this transformation process?
One of the best ways to start your journey is to understand what you want to accomplish in the transformation process. Explore what a digital transformation means for your company and how you can start this process. You should be thinking about what processes, systems and programs you want to update or automate. Once you understand what you have to change, it's time to start making those changes.
Pick a project you can sink your teeth into. Start with a smaller project and prove that you can make changes before taking on the next issue. You don't have to choose a project that is easy, but instead something that can provide you with some quick wins. Set a timeline for the changes to take place. At first, you don't need to set a hard deadline. You can start with a goal that is reasonable and attainable. If you want to make changes to a process where the cycle time is 60 days, try cutting it by 10 days. If it doesn't work out, you can still make changes and try again. You can always try a different project or goal if this one doesn't work for you. The trick is to start where you can make a difference and build from there.
It's very difficult for companies to transform themselves in the face of the cloud. It may seem easy, but they need to be mindful of their IT infrastructure, data, security concerns, employee training and change management. The good news is that there are many consultants who can help with this process. It's easy to get lost in all this information and wonder where to begin. I recommend starting at the beginning — where your company stores its data. This is likely on-premises, but if your company doesn't have a plan for how it will move its data, you're already behind the curve.
The first step to digital transformation is to identify your desired outcome for the process. Start by looking back at your business goals and start to create a roadmap that will get you there. This will include gathering necessary information about your customers, assessing your internal strengths, understanding what your competitors are doing and researching the technologies available.
Conclusion
Cloud adoption is at its peak and it's only going to grow. The benefits are undeniable, but you should make the right choice for your business. The entire process of digital transformation is a difficult endeavor. It takes a lot of time and energy to not only adjust to the new technologies but also to fully understand their applications. However, technology advancements in the last few years have made this process much easier and more streamlined. Those who are willing to take up this challenge will reap many benefits in the future.
