It is true that digital transformation will be one of the biggest management challenges of the coming years. The impact is significant, requiring changes in business models and key business processes, greater interaction with external customers, and therefore, new trends in culture and practices.
Digital transformation is the integration of computers into an organization’s products, processes, and strategies. Organizations are digitally changing their ability to compete by better engaging and supporting their employees and customers.
In general terms, overall digital transformation plans will require the review and re-engineering of all aspects of the organization, from supply chains and processes to staff skills and lines, designs, customer interactions, and stakeholder references.
Digital exchanges have successfully delivered long-term business benefits. Digital technology and processes make it easier for organizations to meet the needs of today’s consumers.
Digital transformation also creates the technological and technological innovations needed to take advantage of rapidly changing technology and that can provide a competitive advantage.
Codigos understands all the challenges that digital transformation imposes, which is why we want to talk to you about some myths of digitization and digital transformation.
Advantages of digital transformation
Digital transformation gives businesses a greater chance of success. For businesses, this success means more than just increased revenue and higher profits. For other types of organizations, such as non-profit agencies, digital transformations for successful services can lead to improved service delivery.
These are some benefits of digital transformation:
- Performance and success have increased, as has technology, such as AI and RPA unit error rates, and accelerated timelines. Meanwhile, the business process continues, enabling digital technology to enhance goods.
- Organizations are better at making successful decisions; these decisions are good for the customer, the workforce, and the staff.
- Because of the culture and ability to support transactions continuously, there are more teams and capacity to respond to business.
- Greater upgrade potential by supporting the risks of adjusting new improvements.
These results support the continuation of the transition. Technology empowers employees, providing more benefits for new and stronger workers.
Myths and truths of digital transformation
These are some myths and truths about digital transformation that you should know:
Myth #1: Digital exchanges are trendy
Many companies have survived for many years with the usual marketing and manufacturing processes, but all indications are that the use of technology may affect their stability over the next five years.
Today, more than ever, ubiquity drives the need for modern business models to ensure and meet users’ evolving needs. In Latin America alone, e-commerce grew by 300% last year. This demonstrates that more and more people are placing their trust in purchasing digital products and web applications.
Myth #2: In times of crisis, all investments in technology should be stopped
Another myth surrounding digital transformation, COVID-19 is merely a snapshot of the changes already underway. In fact, during times of economic recession and forced isolation, technology has truly taken hold. It’s important to understand that the new dietary patterns that have been developing for many years will continue to exist.
Video conferencing, e-commerce, and on-demand content viewing are unlikely to change much if hygiene measures remain simple. This shift means that companies must incorporate all cybersecurity, intelligence, and Internet of Things (IoT) measures into their strategic plans.
Myth #3: Building a digital platform or optimizing the process is expensive
Now, there are many ways to measure a project in real time. At a minimum, the Minimum Viable Product (MVP) has become the starting point for high-tech products used by millions of users today. In fact, building reliable technology is characterized by supporting iterative methodologies.
Therefore, automating the travel process may eliminate repetitive tasks, or it may not. In this sense, it optimizes the cost of operational procedures. The long-term savings that policy solutions might generate are negligible.
Myth #4: Digital sharing is not real
Whether there are thousands of concepts or tautologies surrounding the concept of digital transformation, it must be understood that it is a way for companies to overcome the significant challenges created by integrating the physical, digital, and human worlds. In other words, it is a strategy designed to use technology to solve business problems and unlock new opportunities.
To achieve this, it’s important to have a clear understanding of your business objectives and identify how they will benefit your customers. The specific types of digital tools and platforms you will actually use are still to be determined.
Myth #5: Technology is key in the digital transformation process.
It is undeniable that technology is fundamental to addressing this process. But it is just as important as the cultural and emotional changes that occur within an organization.
Focusing solely on the digital or technical aspects cannot guarantee the success of your startup. It’s important to note that people, cultures, and design are what make the difference.
Myth #6: Digital exchange is an expansive process that takes many years.
The health challenges people face demonstrate that measurable, cost-effective, and short-term digital plans can deliver a clear return on investment. This presents an opportunity to generate profit in the short and medium term.
This is performance and can affect aggregate metrics such as revenue, price, customer interactions, holdings, or LTV in the short term.
It’s a process that can operate at different speeds, but when it’s used, it’s important that leaders adopt new models that challenge traditional hierarchies. These new models represent advocating for, attracting, supporting, defending, and developing integration among diverse groups and cultures.
Myth #7: Digital exchange depends on an investment in electricity.
As we’ve seen in reviewing these myths about digital transformation, the digitization process is much more advanced than simply using technology. It’s important to consider our actual internal needs and how these policies can be addressed in the application process. Technology adds value when it’s solidly justified and reliable in the long term.
Mito #8: Los intercambios digitales están reservados para empresas emergentes o empresas que trabajan en productos para usuarios finales (B2C)
The scanning process is unstoppable. It affects all industries and sectors equally. It arrived like a revolution, disrupting the historical ranking of keywords that seemed to have stalled.
Given these changing circumstances, everything seems to indicate that in the future, it will not be the biggest and fastest companies that survive, but rather those that best adapt to the new process.
Myth #9: Working remotely has an impact on business.
The office is not the key to fulfilling other responsibilities. New product design standards have taught us that all teams must have a culture of commitment and transparent dialogue to be competitive.
Agile work processes have taught us that flexibility and independence are key to achieving a work plan. Ideas like virtual staff, phone conversations, or remote staff will be more relevant.
Myth #10: Digital sharing is the CTO’s responsibility
We seem to assume that the person leading the process is the one who works in media. While their thoughts and efforts are crucial, we can’t forget that digitalization is a collaborative process. It encompasses every office in the company.
In fact, its impact is felt in many areas of the business. According to McKinsey Consulting, they increased costs by 20% and reduced them by 36% while simultaneously improving customer service.
As you can see, digital transformation in businesses cannot be stopped and will affect all industries and all our operations (businesses, regulators and NGOs).
It’s also the revolution that has affected the historical rankings of companies and industries. And the general public is often more advanced than businesses in its use of technology and new forms of social media.
And in this challenging environment, culture is becoming increasingly important and more present in hierarchies. Focus more on supporting, requesting, encouraging, competing, building partnerships, establishing precedents, and creating excellent products from diverse groups and cultures.
It only begins after the experts confirm it, so you must act quickly. Let’s seize this great opportunity to compete for success in today’s changing world, because we can’t afford to close the door on this field.
Coodigos has a lot to offer to the digital transformation of your company, so we invite you to visit our website and apply it to your business model so you can start growing much more.