Digital technology is emerging and extending its wings by leaps and bounds day by day and with this emergence, it has become important for enterprises to stay on the top of these digital trends to gain competitive advantages. Organizations that understand the significance of these digital trends are regularly experimenting with innovative digital solutions to bring innovation and explore new opportunities for their businesses.
Digital technology can completely transform the way you carry out your business operations. In this article, you will explore effective digital transformation strategies that will keep your organization on top of digital trends.
What is Digital Transformation?
Digital transformation is the process of implementing digital technologies for remodeling the workflow of the organization for the sake of enhanced productivity and efficiency utilizing the digital economy. In most cases, this transformation involves the incorporation of AI, IoT, migration to the cloud, the introduction of big data, etc. This switching is as essential as a technological revolution in the corporate world. Organizations welcome the changes to the ways and processes using which they carry out their day-to-day operations and functions. By adopting technological transformation everything from the business model, strategies, internal processes, and customer experiences go through relevant adjustments. As a result of these adjustments, business becomes more efficient, productive, and competitive.
Moreover, COVID-19 has made it essential for organizations to be adaptive to the digital revolutions and changes as with a lack of technology, it is not possible to survive in the market. Pandemic is though an unpredictable condition but this has made technology a necessity for the whole world. The business pioneers in almost all the business categories understand the importance of digital technology and the constant change required by it. Therefore they are setting new trends and encouraging all the businesses to adopt new changes for reaching new heights.
Why Your Business Should Get Transformed into Digital Space?
There are a large number of reasons why businesses may require digital technology trends to be utilized and thus stay ahead of the competition. Let’s understand the most common reasons to try digital technological trends.
Improved Data Aggregation
Unorganized data is not of any use. It is only considered valuable if it is organized properly. It is utilized for processing and analysis in an organized form which further helps in providing better insights for effective decision-making for the business. An effective digital space when used by organizations leads to well-aggregated data that also enhance sensitive data confidentiality and prevents cyberstalking.
Better Allocation of Resources
Random allocation of resources is always dangerous for any business as it may impose risk to the security of business data. If your business resources are collected in one place the allocation process becomes simplified and quicker. This also helps in simplification of the management process while also ensuring personal data safety. The innovation in the digital field enables organizations to integrate programs, databases, and apps for better alignment of operations.
Good Client Understanding
With an effective and detailed analysis of the data, you can have better knowledge and understanding of what your clients’ desires and expectations are. Based on the activities of the customers you can reshape your marketing strategies accordingly to achieve your higher business objectives. Framing strategies according to the needs of customers is the key to attracting more clients as well as profit.
Digital technology helps organizations Upgrade the level of customer experience. Since customer experience is one of the key factors that can help businesses win over their competitors, Therefore a customer authentic approach is always a priority for every organization. Providing good customer service has become possible due to digital innovations, such as improved communication channels, hassle-free web performance, and quick response systems. With such digital innovations, organizations can win the hearts of their clients easily.
Convenient Team Work
Innovative technology supports organizations with effective instruments and tools that enable teams to work collaboratively to achieve organizational goals. A technically sound and modern organization provides effective communication channels to their team using which working on projects collaboratively becomes quite easy. Besides this, digital solutions can offer regular training and education to the employees to stay tuned with the latest trend and enhance productivity.
As discussed, innovative technology incorporation will help enhance efficiency and productivity which in turn will improve the sales goals of the business. This is possible due to better allocation of resources, Workflow optimization, And go or entered marketing strategy.
The complete credit for achieving flexibility for an organization goes to the incorporation of digital technology which aids in changing the strategy according to the requirements of the business and clients. This flexibility further helps in releasing products more quickly and hence enhances productivity, client satisfaction, and ultimately business revenue.
With the help of innovative digital solutions, an organization can be more scalable regarding its product development as the team gets support from the modernized workflow. More power processes will ultimately enhance the capacity of business to a great extent.
How to Build A Digital Technology Strategy as Per 2022 Trends?
The main aim of incorporating digital technology into your organization is to give an exceptional fight to your competitors and stay ahead of them in the market. However, a digital transformation is not going to be productive as long as you are not aware of the latest digital technological trends. So it is important that 1st you make yourself familiar with all the digital trends in 2022 and then implement them as per their scope in your business. Let’s discuss a few certain trends of 2022.
Customer Data Platforms (CDPs)
In this era of digital advancement, the data from the customer is being collected everywhere. Whether they are purchasing one of your products or services or on the Internet interacting with your organization for any purpose, all sorts of conversations and their data are being recorded. Both large and small-scale enterprises are working on this strategy.
The only difference that lies is in the usage of this collected data. For organizations having limited marketing options this would not be a problem at all but for large-scale organizations with a wide range of products to offer and a large customer base collecting data from such a huge audience becomes difficult. This is the case where customer data platforms or CDPs perform a great role.
A CDP is a single customer data source that organizations use to gather customer data and then frame targeted marketing campaigns for their clients. You may think of it as a technological solution made only for the marketing wing but this is a wonderful tool for finance and IT wings, as well as this, can facilitate quick decision making regarding products, services, and investments.
Focus on Cyber security
A few years ago, the transformation of organizations into digital space started as a product development initiative. This involved the organization’s fast go-to-market plan and they focused more on initiatives such as DevOps. In this strategy initiative, one important thing that was left behind was security. But with increased cyber attacks in recent years, organizations became alert regarding their online data security. Most large-scale enterprises have now hired digital advisory services which involve cyber security consultation offered by chief information security officers.
Moreover, the COVID-19 pandemic has realized the requirement of high cyber security efforts. Your organization’s security wing must ensure that its cyber security practices don’t affect the pace of your digital transformation. Also, the sole aim of the organization should not be to speed up the process but it should be to speed up the process safely without risking the organizational data.
The distribution of workload and software within the organization by utilizing one or two public or private clouds is referred to as a multi-cloud environment. The adoption of this architecture by the organizations is boosted more during the COVID-19 pandemic. This is because digital solutions eliminated the risks of business continuity. Also during this pandemic, organizations desired to manage their work more easily by following all safety measures which gave rise to remote work.
Multi-cloud system is adopted to help aid in data residency and resilience requirements, disaster recovery, etc. However, the only complexity involved in this is the management of such a multi-cloud infrastructure. To manage such an environment organizations are required to evolve innovative automation and cloud management solutions so that their agility requirements can be met.
Accessibility of AI to Everyone
The transformation of the business into a digitally sound space cannot be imagined without the democratization of Artificial Intelligence (AI). This is one of the major digital transformation trends of 2022. It is a process of making AI accessible and reachable to every organization or possibly every employee of the organization. This is possible with the incorporation of various tools based on AI. These tools facilitate making decisions, forecasting, improving, learning, and spotting and recognizing trends.
In this era, every single organization and even startup is trying to include AI in their business processes and systems. Some organizations have adequate resources to make this integration happen, and some organizations may use AI as a service provider just like companies such as Microsoft, Google, and AWS are doing.
Besides being a difficult solution to implement, AI is a costlier solution for many businesses which they need to address. Even after this, the healthcare industry is an excellent instance of the implementation of AI. This industry has been transformed by successful AI integration.
Digital Payments and Contactless Solutions
The year 2022 has given rise to contactless dining, the rise of no-touch solutions, and NFC payments. Cafes and restaurants are deploying contactless solutions to deliver the orders to the customers. These solutions essentially evolve as a result of the post-pandemic consumer behavior shift. It does not only involve delivering food to customers’ places but also in-seat ordering through contactless solutions.
In-seat ordering refers to an ordering system in which customers need not stay in line for as long as they can keep sitting on their seats and make payments from their smartphones via apps or QR codes. QR codes enable customers to explore menus of the restaurants and pay easily without the need for physical interference.
To incorporate such contactless solutions into the organization, you need a robust infrastructure established so that the transformation process can be convenient, productive, and quicker.
Organizations can achieve a quicker transformation to the digital space by incorporating integrated automation into the processes. Digital transformation is the result of automation. COVID-19 is one of the key reasons that have encouraged organizations to adopt automation for their business processes. To let business operations run smoothly, organizations are required to automate their processes.
Automation is another important trend for 2022 according to Gartner. It also explains the process by which various technologies such as automation, RPA, machine learning, etc. are bound together.
For increased scalability businesses can also adopt automaton systems based on cloud technology.
5G is going to be another major trend in 2022. The transformation of digital space will catch the high pace with the adoption of 5G technology. There are a large number of benefits offered by 5G for telecom providers such as the increased capacity of delivery of services, new content, etc. Also, this technology will boost the speed of service delivery by the telecom providers.
5G technology can help organizations in transforming their operations by improving the ways of service delivery to the end-users. Some of the benefits of this will include low latency, fast speed, and higher density as compared to the 4G network.
To enjoy the full advantages of the 5G network, organizations are required to invest adequate amounts in establishing their network infrastructure.
Smart Data Analytics
Data are the key assets for any business organization but only if they are processed, organized, and well maintained. Smart data analytics are the tools that can help you extract valuable and processed information from the raw data. The processed form of data enables organizations to improve their decision-making power and thus enhance the productivity of the organization.
For accelerating the digitization process of any organization, data and analytics are the key components. The variety of data analytics can lead to a variety of respective implications throughout multiple departments.
Data analytics are useful for different departments within an organization to explore solutions to typical problems. These analytics of the data enable organizations to predict customer behavior, sales pipeline optimization, supply chain process optimization, and more.
Different Stages of Digital Transformation
The different stages involved in the digital transformation include:
Usual: Traditional approach to the processes of working.
Present: At a given moment, the state as it is.
Formalized: The stage at which you begin introducing alterations to your routine workflow and business models.
Strategical: The strategy as soon as the guiding policy is framed.
Combined: Organization has an educated team as well as a trustworthy action plan in the process of digital transformation.
Innovative and Adaptive: Implementation of chosen strategy actively, with scope for future changes.
Measuring ROI from Digital Incorporation
To make sure that your digital transformation has been successful, you need adequate tools that can show you the results clearly that you have achieved. Additionally, this will help you to assess your accomplishments, strengths, and weaknesses and then make adjustments in your business strategy if needed in terms of business processes as well as client service.
There is a special set of transparent KPIs that can be utilized to measure the achievements. This set of KPIs provides clear ideas to both parties about the effectiveness of their digitally opted strategies. First of all, a comprehensive approach should be utilized to create an overview of various investments that involve digital transformation. You should also be capable of taking risks to implement the things which are necessary to be changed for your business. Once this is done, effective techniques need to be utilized to assess your transformation process. The various metrics that you can use include:
Business Outcomes: assess the impact of strategies through growth in revenue, lifetime value of the customer, marketing time, etc., the impact of operations via improvement in productivity, scale, efficiency in operations, etc., and cost impact.
Measurement Standards: Ideally, you set a system of measurement standards beforehand as this will help in measuring the success.
Create Metric Hierarchy: For a better idea, a hierarchy of metrics and sub-metrics can be created. This will also help you implement changes if required.
Introduction of Results to Business: Parameters such as an increase in profit, speed of release of products, improvement in workflow efficiency, and cost-effectiveness of the production are ideal to be used to analyze the strategic effect on the business
Before you incorporate a digital strategy into your business processes, you must understand that the process of transformation may get much different than the program strategy and application plan. To avoid any deviations and for achieving relevant and effective outcomes for your business, you must first set bold milestones and goals along with enhancing the mindsets of the people involved in its usage, especially your frontline incubation and strategic resources. By staying on trends you will be able to make the best decisions for your organization.