Times are changing and we are coming into times when one needs to step up their business using digitalisation and digitisation but let me explain the terms.
Digital transformation is the use or adoption of data and technology to have a comprehensive organization-wide change and get better customer service.
Digitization is the process of making information available and accessible in a digital format, converting manual control into electronic verification.
It also focuses on converting and recording data
While digitalization is all about developing processes and changing workflows, the act of making processes more automated through the use of digital features.
Eye identification checks with optical character recognition.
We have two case studies of companies that made use of digital transformation to scale their business, Netflix and Glassdoor, Netflix became the number one movie subscribing and viewing platform when they decided to let go of their DVD rentals and try to digitalize their process, and their viewers increased during the COVID period because people wanted to see movies and cinemas were banned and shut down due to the pandemic.
Glassdoor is a digital platform that asks employees questions about their work culture, employers, salary, and values and uses the answers from these employees to satisfy the questions of job seekers who want to work in those organizations.
Why is digital transformation important for business owners?
1. Better customer experience
A bank usually was about the physical location, everything needed for a customer to visit a branch physically but with the introduction of digital transformation, most processes have been inculcated into USSD, Apps, Chatbots on WhatsApp, Automated Teller machines, collaboration with payment platforms like Flutterwave, Interswitch, patellar, Point of Sale machines, Bills etc
There are many ways that banking has evolved and adapted to the digital age. Mobile banking applications: From websites to smartphones, customers can access and manage their bank accounts and finances online. Faster, easier online payments: Customers can send and receive money transfers instantly
With the innovation that digital transformation brings to a company, your customer can get a quick and better response from your company
2. Reduce operational costs
Still using the bank, do you know how many papers are needed for withdrawal slips that were reduced, with the introduction of POS terminals and ATMs, a lot of things might not be needed as well and some personnel might be focused on doing what matters, customer complaints can be reduced so that the company can focus on what matters.
3. To meet regulators’ requirements and increase customer protection and security.
With the introduction of digital transformation, customer details can be protected, some customers would prefer telling a chatbot their experience with your company than telling a staff so as not to hurt your feelings. With the advancement that comes with having a cloud either with Microsoft (One Drive) or Google (Google Drive), customers’ records can be saved for future reference and safety.
4. To increase the viability and sustainability of one’s business model.
One of the advantages of introducing digital transformation is that it makes a company to be scalable, a company like Uber doesn’t have a car but with Digitalisation in place, it makes it easy for the company to make more money as long as there are cars in the world.
Digitalization makes a company to be easily scalable and sustainable.
However, there are limitations to digital transformation.
1. Cultural and behavioral challenges of the company and employees.
2. Lack of strategy and understanding of digital trends
3. Lack of IT infrastructure
4. Lack of funding
5. Lack of data.
Digital transformation starts with strategy and leadership, people and culture are key drivers of successful digital transformation of any company.
How to track digital progress after it has been inculcated
1. Return on digital investment
2. Top technical talent attracted and retained
3. Productivity
Hope you found value.
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