Sometimes digital transformation is confused to mean changing ones mode of processing things. This means that any existing physical or material thing is digitized or computerized in digital format mainly for the purpose of efficiency. Paper forms became electronic forms, cash became computer information or bits, paper documents became paperless forms, logs and invoicing of a sales transaction became sales-force automation and ERP.
There is more to digital transformation that what we have seen in its essence. If we stop at the digitization part of the definition, it actually missing a lot of things because this actually means a digitally transformed business that involves the entire ecosystem of the business. The supply chain, partners, customers, crowds, and employees are included in all of these.
If you merely stop at the digitization part, you will miss the transformation part which is designing everything from the physical and material order into a virtual form. Doing this is good for many reasons. When we speak of digital transformation then we are speaking more than digital products and services, but about the processes that create, enable, manage, and deliver them in a virtual arrangement.
If a business falls on the wrong side of this transformation a good reason for this is the lack of data processing in real time. This has always been the shortfall of those who follow traditional ways. And especially today where we live in a fast pace age, analyzing data and historical data mining has never been more critical when it comes to identifying opportunities and determining risk.
By using real-time insights to enable customers, workers, supplier, and machines to seize opportunities immediately and take collaborative action at the moment of greatest impact is to have a managing edge over all your business resources.
If you increase automation , usability, collaboration, and real-time processes to improve efficiency, it would mean not only capturing the individuality demanded by customers but also improving the economics of your business processes.
Connecting your internal business processes, labor, ecosystem partners, and customers to deliver a new level of transparency creates an added value which goes beyond the boundaries of the enterprise. And when you are on top of these boundaries, you can leverage the power of these new networks and reevaluate how to widen the value that you deliver to each including your customers.
Also, by developing new solutions, processes, services, and business models that is buoyant to your suppliers and customers, you can expect that it will deliver innovated outcomes strengthened by better tools and updated equipment to comply with those recognized needs.
The dynamism of this type of transformation is seen through the recurrence of these patterns. This is a never ending cycle that is developing constantly and if you are behind digital transformation or if you fall on the wrong side of it, you are on your way to extinction.
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