People make the mistake of confusing digital transformation to mean altering ones mode of processing things. What it means is simply to transform your physical or material things into something that is computerized or digitized, in digital format so that the process is more efficient. What this does is to transform paper form into electronic forms, like cash becomes computer information or bits, paper documents becomes paperless forms, logs and invoicing of sales transactions become sales force automation and ERP.
In essence that is indeed digital transformation but the word denotes something else. If we stop at the digitization part of the definition, it actually missing a lot of things because this actually means a digitally transformed business that involves the entire ecosystem of the business. What this includes are the supply chain, partners, customers, crowds, and employees.
To stop at the digitization part is to miss the transformation part, which is designing all these items from the physical and material order into a virtual form. And there are many good reasons for doing this. When we speak of digital transformation then we are speaking more than digital products and services, but about the processes that create, enable, manage, and deliver them in a virtual arrangement.
A lack of data processing in real time is a good reason why businesses today will die if they fall on the wrong side of this transformation. This has always been the shortfall of our traditional bearing. And today when it comes to identifying opportunities and determining risk, analyzing data and historical data mining is very critical since we are living in a fast paced age.
If you are able to use real time insights to enable your customers, workers, supplies, and machines to seize opportunities immediately and take collaborative action at the moment of greatest impact, then you have a managing edge over all your business resources.
If you increase automation , usability, collaboration, and real-time processes to improve efficiency, it would mean not only capturing the individuality demanded by customers but also improving the economics of your business processes.
By connecting all your internal business processes, labor, ecosystem partners, and customers, to deliver a new level of transparency is simply creating an added value which goes beyond the boundaries of the enterprise. You can leverage the power of these new networks and reevaluate how to widen the value that you deliver to each including your customers if you are on top of these boundaries.
To be able to deliver innovative outcomes strengthened by better tools and updates equipment to comply with recognized needs, there is a need to develop new solutions, processes, services, and business models that are buoyant to your suppliers and customers.
What these patterns recur, then these constitutes the dynamics of this type of transformation. The cycle never ends and it is constantly developing so if you end up on the wrong side of this transformation or if you are behind it, then your business is in danger of extinction.
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