Digital transformation is the process in which a company implements a digital mindset across all its sectors. No matter what product or service is offered – it can be as analog as possible.
What matters is that the processes used in its production and marketing obey the logic of the digital world . And what is this logic? Of rapid changes, instant responses, flexibility and agility.
To help you understand better, we explain below some aspects that we can consider as pillars of digital transformation:
- Consumer focus : it has never been easier to understand consumers’ desires and preferences . Therefore, it is essential that this information guides all of the company’s work.
- Constant feedback : all companies have made, make and will make mistakes. Since there are now more and better possibilities to obtain feedback , it is necessary to take advantage of failures to qualify the product.
- Faster deliveries : all these processes – producing, launching the product, getting feedback and correcting course when necessary – must happen with maximum efficiency.
- Adapting to change : deliveries need to be agile because contexts change all the time. Therefore, the company needs to be resilient and, at the same time, able to make its processes more flexible.
Did you notice that in none of the aspects we just explained did we mention technology?
This does not mean that she should not be present.
On the contrary, it is new technologies that make all this much easier.
That is why we emphasize, at the beginning of the text, that digital transformation goes beyond using technological solutions in an organization .
The concept involves using technology to implement the digital mindset, made up of the pillars we explained above.
The ultimate goal is to improve the company’s performance, making it leaner, more efficient and productive, without ever failing to satisfy its target audience.
What caused the digital transformation?
If you research the subject further, you will find many sources that provide a much more simplistic definition of digital transformation. In some of them, the concept simply means the process of using technology to improve a company’s performance.
A structural transformation, therefore, and not a cultural one. Based on this logic, we could simply answer that what caused the digital transformation was the advancement in available technologies.
This is because, with this new reality, it becomes a necessity to seek the adoption of these technologies so as not to be surpassed by the competition, which uses them and increases their efficiency .
Not that this logic is wrong. But if that were all, the only difference between digital transformation and the processes that companies underwent in previous industrial revolutions would be the connectivity provided by the internet.
Why is digital transformation important?
As the world becomes more volatile, uncertain, complex and ambiguous, it becomes difficult for any company to predict future scenarios.
Based on this difficulty, digital transformation makes the company agile and capable of adapting to market instabilities.
So, instead of structuring yourself based on rigid planning for the future, you need to develop these capabilities. That is the importance of digital transformation.
But it is worth highlighting again that everything starts with a cultural change, which seeks to establish a new mentality within the organization .
This mentality will imply new changes in the company’s structure, yes, but mainly in the processes.
Methodologies like Scrum and Agile come into play. And also practices such as design thinking , which encourages the creation of multidisciplinary teams and stimulates creative approaches to problem-solving .
Design thinking proposes prototyping products before they are launched on the market, in order to gather as much feedback as possible and make adjustments to the project efficiently and quickly.
Returning to the theme of this topic, we can summarize by saying that digital transformation is important because it makes the company more innovative, agile, resilient and flexible to face the difficulties of the VUCA world.
What is the purpose of digital transformation?
The main objective of digital transformation is to use technology to serve companies and society. By this, we mean that, through new solutions, it is possible to alleviate and resolve traditional problems with greater practicality, speed and efficiency.
Digital transformation can contribute, for example, to:
- Make communication faster and more assertive
- Integrate sectors, making teams more aligned and collaborative
- Access complete information in a more plural way
- Automate processes and reduce bureaucracy
- Facilitate decision-making through data support
- Improve customer engagement through more instantaneous channels
- Facilitate performance analysis thanks to modern management tools .
How does digital transformation work?
Contrary to what many people may think, the implementation of digital transformation does not occur purely and simply through the use of new technologies in the operational context.
We are talking about a much broader process that starts with a cultural change . In other words, it is something that takes time and requires, above all, adaptation from managers and employees.
After all, they are the ones who will learn and lead this change project.
Digital transformation in the corporate context needs to be managed from the top down.
Its operation depends on the establishment of clear guidelines by leaders to gradually reach other employees.
David L. Rogers, One of the leading experts in the area of corporate innovation, in his book The Digital Transformation Playbook, lists what, for him, are the five fundamental pillars for driving the transition in companies:
Customer
Although customer experience is not the only reason to invest in digital transformation, it is undeniable that the audience plays a fundamental role in the success of a business.
It is the reason for the existence of any company.
Therefore, the industry’s disruptive actions must always be aimed at better understanding its target audience: what their desires and wants are.
Words like engagement, personalization and interactivity should be part not only of the vocabulary, but also of the set of actions of an organization that intends to be in constant evolution.
Competition
Along with the digital transformation came a series of other changes. The way we view competition , for example, has changed.
As Rogers mentions in his book, it is no longer just companies in the same segment that are now competing for a place in the sun. Tools, digital platforms and new technologies, which enable more direct contact with the public, have started to gain much more space.
Data
Data sources are limitless.
The big challenge is to convert this data into relevant information that can be used to make more strategic decisions.
Therefore, this element is considered by Rogers as the third and one of the most important pillars of digital transformation.
Using Big Data , it is possible to generate innovation , manage your business more assertively and be more efficient in finding answers to your customers’ problems.
Innovation
When we talk about digital transformation, we immediately think of an innovation proposal – and that’s not wrong.
However, innovating does not necessarily mean creating something completely from scratch.
Sometimes, small improvements already add value and prove to be solutions capable of delivering what the customer is looking for.
Value
Just because a solution adds value at a given moment doesn’t mean it will deliver the same results forever.
Needs are constantly changing and, for a company to maintain this digital transformation process in a sustainable way, it is necessary to be aware of market movements .
New opportunities arise all the time.
It is up to managers to take advantage of these situations to use technology to their advantage.
Business
It is interesting to think about how digital transformation can impact the most diverse areas of society .
The business world, for example, is perhaps the one where this transition is most likely to be observed .
This change can be seen from the selection process, with the implementation of software that filters candidates , in a robust database, based on the desired profile for a given vacancy.
The same can be seen in training platforms, performance analysis platforms, and so on.
All with the basic principle of improving performance and reducing production bottlenecks.
Health
Healthcare was another sector in which digital transformation brought countless benefits .
In addition to modern equipment, which enables the diagnosis and treatment of various diseases, access to global databases has enabled a much greater exchange of information .
Today, a doctor can have access to electronic medical records, digital reports and medical histories from everyone.
This allows him to ask questions to other professionals and discover new information, enriching existing data.
Education
In education, digital transformation can occur through the personalization of distance learning platforms .
Through these channels, it is possible to offer differentiated service to students and respect each student’s learning time.
The so-called virtual learning environments offer a series of advantages, such as didactic teaching, bringing content closer to the student’s reality and offering shared content , which enables collaborative editing.
Consumption
The way of consuming has also changed with the digital transformation.
It is no coincidence that products that interest you are starting to appear more and more on your screens.
Using your search history and even your purchase data, you can make personalized offers based on your preferences.