Digital Marketing

How important is digital transformation in the current economic era?

4 Mins read

The first decades of the 2000 millennium saw the ultimate development of technology and artificial intelligence. We have grown to a stage where people can easily look up information on online products, track loan status – banks via a mobile app, easily capture marketing information, or stock market, real estate with just one click…

It is easy to see that, from large corporations to small companies, digital transformation is needed to increase convenience and speed in their work, and can be done by inhouse or high quality digital transformation services. However, in particular, how important is digital transformation in the current economic era, let’s take a look at the following article.

What is digital transformation?

Digital transformation is almost mandatory for all businesses, from small businesses to small businesses. The consciousness of this time is expressed from the speeches, discussions, academic papers related to how businesses can remain competitive as the world becomes increasingly contributory to digital, and so on.

According to Wikipedia (https://en.wikipedia.org/wiki/Digital_transformation), digital transformation is a phrase that interprets change in the way businesses work, using new digital technology to solve problems faster and more effectively. In particular, one of the examples of digital transformation is cloud computing, which reduces reliance on cumbersome machine systems. Some other specific examples we at least have known or used via, such as Microsoft Office versus Office 365, or cloud-based solutions like Google Docs.

How important is digital transformation in the current economic era?

There are many reasons why a business must conduct digital transformation, but above all, the first and the foremost reason is: to increase the viability of the business.

From a business and practical perspective, businesses should apply digital transformation in a small case study first, with clearly defined goals, should not exceed the purely pursuit to quickly achieve. In addition, decisions about potential needs for evaluation to understand the current state of the company, how the performance, customer satisfaction… to identify potential problems, opportunities and risks will certainly be encountered (Lawton 2015; Kaufman & Horton 2015).

Since digital adoption will somewhat change the current business model, digital transformation will also create new values throughout the process of reaching and serving customers later. Companies need to rethink and review the scope of their business, then identify potential new sources of revenue from digital transformation of products, services and customer interaction. Everything must be planned and ensured exactly according to what has been outlined to minimize risks later. (Hess et al. 2016; Matt et al. 2014).

To understand the reality of this, let’s take a look at the S&P 500 (https://en.wikipedia.org/wiki/S%26P_500_Index ) S&P 500 is known as a stock-based stock index of the 500 largest market cap companies listed on the NYSE or NASDAQ. The ratio and the type of stock used to calculate the S&P 500 is determined by S&P Dow Jones Indices. John Marcante (https://www.linkedin.com/in/john-t-marcante), Global Chief Information Officer, Technology and Security – Vanguard, also shared: “From the S&P 500, we can see that, according to the US Enterprise Organization, US corporations have remained on that index for an average of 61 years since 1958. By 2011, the average figure was 18 years. After nearly a decade, today, companies are being replaced on S&P about every two weeks. We can clearly see that technology has driven this change in a significant way. And obviously, companies that want to succeed must understand how to integrate technology with strategy.”

Digital transformation – Converting customer experience

Perhaps the worries and concerns about the pursuit of digital transformation, social media and technology applications all revolve around the so-called ‘competitiveness’. As a business owner, surely everyone wants their business to have valuable solutions to increase competitiveness with other businesses; At the same time, it must be conducted and adapted quickly.

But most importantly, businesses must understand that customers are the center of a whole business. Don’t focus too much on the methods and processes, but on the customer experience. In other words, the main focus of digital transformation is the use of advanced technology to improve the customer experience. According to Forbes (https://www.forbes.com/sites/sap/2017/07/13/why-digital-leaders-focus-on-customer-experience/#7b7fc0dc6228), 70% of leaders have seen the important value of digital transformation, positive transformations from digital transformation in customer satisfaction and engagement; thus, they have done many different surveys to find customer satisfaction points, thereby making strategic plans to advance. operating a digital transformation in the least risky way.

Hence, the point now is, what are the success factors in elevating the customer experience in digital transformation?

According to McKinsey, these are the following four factors:

–      Shape and digitize customer journeys

–      Increase service speed and quickly grasp insights

–      Win the customers’ hearts to a digital journey

–      Speed up and develop maturely

Frame of digital transformation – How can it be recognized?

Keep in mind that digital transformation must be considered and tailored to suit the business model of each company. However, there are several standard frameworks for digital transformation so businesses can rely on which to make the best decisions and pathways.

According to website Enterprise Project (https://enterprisersproject.com/what-is-digital-transformation), frame of digital transformation is often seen through such factors as:

–      Customer experience

–      Agile works

–      Culture and leadership

–      Labor force support

–      Integrated digital technology (inhouse or offshore software development team)

Wrapping-up

Playing a key role in determining the survival and competitiveness of businesses in today’s technology age, digital transformation is studied and applied around the experience of business customers. No matter how flexible your frame of digital transformation is, keep in mind that customer experience must always be focused and put on top. After all, a business can only operate and operate meaningfully when trusted and loved by customers. Therefore, no matter what follows the series of digital transformation activities, be careful and listen to your consumers more!

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