Why digital transformation is important? All about digital transformation

Introduction
In today's fast-changing business world, digital transformation is key. Technology is changing customer behavior, market dynamics, and industry standards, forcing enterprises of all kinds to adapt or risk becoming obsolete. Digital transformation improves operational efficiency and opens new growth and innovation channels, as this essay explains. Digitalization is essential for organizations to survive in the digital age, from improving customer experiences to streamlining procedures. Join us as we explore what is the impact of digital transformation on organizations and why they are essential to their success.
Why digital transformation is important? All about digital transformation

In today's fast-changing business world, digital transformation is key. Technology is changing customer behavior, market dynamics, and industry standards, forcing enterprises of all kinds to adapt or risk becoming obsolete. Digital transformation improves operational efficiency and opens new growth and innovation channels, as this essay explains. Digitalization is essential for organizations to survive in the digital age, from improving customer experiences to streamlining procedures. Join us as we explore what is the impact of digital transformation on organizations and why they are essential to their success.


What is digital transformation

Digital transformation, abbreviated as DT (Digital Transformation) is a change in thinking, operating methods and problem solving of businesses, organizations or individuals by applying digital technology and systems. The internet is effective. The goal of digital transformation is to leverage the potential of digital technology to improve work performance, add value and create positive change for organizations, customers and society.


During the digital transformation process, organizations will apply technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Cloud computing technology, Big Data and Analytics. Data Analytics, Business Intelligence (BI) and many other technologies to optimize production processes, financial management, improve customer interaction, enhance user experience and enhance customer satisfaction. organizational creativity and competitiveness.


The digital transformation process comprehensively impacts many different aspects of the organization, including: how it operates, culture, organizational structure, relationships with customers, partners, and people. Digital transformation is not only a technology issue, but also requires changes in work processes, employee training, and changes in thinking and working attitudes of all members of the organization.


The core importance of digital transformation is a comprehensive change in the way an organization operates and takes advantage of the opportunities that digital technology brings to achieve optimization, create new value and maintain competitive advantage.Digital transformation is becoming a key element for organizations to thrive in the digital age, helping to drive innovation and enhance productivity, as well as improve customer satisfaction.


The goals of digital transformation

With the goal of leveraging digital technology in Digital Transformation to improve and optimize work processes, increase flexibility, enhance customer experience and develop new products/services, enhancing competitive advantage. business competitiveness, improving employee experience.


Some goals of the digital transformation process include:


  • Enhance efficiency and productivity: Applying digital technology helps optimize work processes, minimize waste and enhance organizational performance and productivity.
  • Improve customer experience: Using digital technologies enhances customer interactions, improves user experience, and creates better services and products that meet customer needs.
  • Exploiting new opportunities: Digital transformation allows organizations to take advantage of new opportunities that digital technology brings, such as exploiting data to make smart decisions, developing new products and services, or access new markets.
  • Enhance competitiveness: Digital transformation enhances an organization's competitiveness by enhancing creativity and driving innovation in the way it does business and delivers value to customers.
  • Increased reliability and safety: Digital solutions often come with information security and safety measures, helping to protect an organization's data and information from cyber threats and attacks.
  • Adapting to the digital market: Digital transformation helps organizations adapt to trends and changes in the digital market, helping to ensure survival and sustainable development in the future.


Organizations and businesses that aim for these goals can increase their competitive advantage in the market, increasing the likelihood of business success in both the short and long term.


Benefits of digital transformation

Digital Transformation is considered a trend of minimizing time in management and optimizing costs. Whether we like it or not, digital transformation is still happening, in a world where technology is exploding strongly, buying trends and consumer expectations are constantly changing like today. If state agencies, large or small-scale businesses, and even every individual living in today's digital technology age does not change to adapt, they will certainly fall behind and possibly fail. lose. Therefore, digital transformation will change people's thinking and perception, eliminating outdated ways of working to establish a fast, accurate and cost-effective working process based on digital technology.


Meet constantly changing customer expectations

Improving technology and sales channels gives users more choices, thereby raising expectations about the experience they receive. Digital transformation technologies help increase interactions between customers and businesses. They contribute to helping businesses attract and retain customers. For example, the activity of "going grocery shopping" after the impact of the epidemic has become more familiar and convenient for people who are busy or do not want to wait or waste time at the supermarket.


Survive in a competitive and constantly changing market

Digital transformation also plays a role in enhancing competitive advantages for organizations and businesses in today's complex business market. Before letting competitors lose their pioneering position, businesses need to quickly implement the digital transformation process to bring customers new experiences. Customers today expect more from businesses, especially digital experiences that can be used anywhere and anytime.


Analyze data sources

Organizations can leverage digital transformation to collect and access large volumes of data. Thanks to that, it is possible to analyze data to track customer information and specific metrics to accurately evaluate and find solutions to outstanding problems. These data greatly support organizations, agencies, and businesses in the decision-making and planning process.


Enhance employee experience

When employees have good work experiences, productivity and work efficiency are positively impacted. Digital Transformation helps transform work processes to be simpler, faster, more modern and more energy-efficient. Thanks to that, work is assigned clearly and seamlessly, helping businesses ensure progress and efficiency.


Eliminate barriers between departments/departments

The digital transformation process helps information be stored on the system, easily accessible anytime and anywhere. Departments/departments within the organization can share documents and help them communicate more frequently and optimally thanks to chat tools.


Increase performance, reduce costs

The digital transformation process can be costly for most organizations and businesses, but this is a long-term investment that brings positive results. By spending an initial amount, businesses can save on transportation costs through the digital transformation process.


At the same time, digital transformation also helps employees focus more on work and quickly complete tasks successfully. Especially labor-intensive and time-consuming jobs, when replaced by machines, can increase productivity and quality as well as minimize errors.


Technologies for digital transformation


Internet of Things (IoT)

Internet of Things is a network of things connected to the Internet, referring to billions of physical devices around the world that are connected to the Internet, performing the process of collecting and sharing data.


IoT devices are where digital technology is put into practice. Applications such as self-driving cars and control applications generate data in real time to perform automatic (self-driving) modes and make decisions (avoid obstacles in the way).


Blockchain

Blockchain is gradually becoming familiar in today's digital environment. Blockchain is a record of electronic transactions, providing information about all transactions transparently to those with management rights, while preventing intrusion by unauthorized people. Many businesses use blockchain to underpin hyper-flexible supply chain transformations and financial services globally.

Why digital transformation is important? All about digital transformation

Blockchain is an emerging technology.


Hybrid cloud

Hybrid cloud is a cloud computing infrastructure that helps connect on-premises information technology resources, crossed between Public Cloud and Private Cloud platforms. This technology helps businesses become more flexible and have more options when deploying data. By creating a single, highly flexible cloud computing facility that can run large workloads. Working with a dedicated development team in hybrid cloud helps process information quickly, analyze the information needed to serve the digital transformation process of businesses.


Microservices

Microservices is a special method applied in software system development. This method focuses on building single-function modules along with specifically defined interfaces and operations. Microservices are a tool to establish or combat digital disruption. It allows organizations to deploy new product and software features every day, even hundreds or thousands of times per day.


>>> You might be interested in: SOA vs. Microservices: Which Is the Best In 2024?


Artificial intelligence (AI)

Artificial intelligence (AI) enables technology to mimic human abilities, helping to recognize objects and make important decisions. When combined with automation, AI can inject real-time decisions into any workflow. This drives things forward, personalized customer experiences, and optimized workflows.


Virtual Reality and Augmented Reality (VR/AR)

Virtual Reality (VR) and Augmented Reality (AR) provide new interactive and learning experiences through virtual worlds or augmented reality.


4 Important factors when implementing digital transformation


Data

During the digital transformation process, businesses also need to answer the question: How to take advantage of data sources?


In fact, many organizations and businesses, despite possessing a large amount of data, do not know how to fully exploit its advantages and potential. For example, at supermarkets with membership card policies, in addition to redeeming rewards at the end of the year, they need to develop that data source more optimally, for example, developing an application that offers special incentives. rights for each individual according to their shopping needs.


Data also has a time limit, after a while, consumer concerns may have changed. Therefore, they need to be exploited at the right time and in the right way. To maximize the advantages of technology in this transformation race, businesses need to build a data exploitation, management, and analysis system to distinguish:


  • What data is necessary for each department's activities such as Sales, Marketing, customer care,...
  • Which data is no longer relevant?
  • What data can be the basis for predicting the behavior and preferences of potential customers in the business?


To be able to do that, organizations and businesses need to build a system to collect and connect data from many channels to a single place, also known as a CRM system. This allows all departments to have the necessary data for the work process.


Technological factors

Technological factors often develop in parallel with changes in market demand, so businesses can find new growth opportunities. For example, in modern life, when needs need to be satisfied immediately without having to spend a lot of time, the real estate industry can let customers experience the house in AR augmented reality technology.


Today, from Big data, Internet of Things, artificial intelligence or cloud algorithms,... businesses need to clearly understand how to apply them to their businesses, to see what advantages these technologies bring? How to adjust technology to the needs of the business and market, and how to integrate new applications into existing systems?


Digital transformation process

Digital transformation is a revolution in operating methods, how to both satisfy customer needs and connect business activities in the easiest way to manage and monitor.


In fact, we can receive calls with the same content from many consultants of the same bank. This is a lack of optimization in the implementation plan, as well as a consequence of confusing and overlapping information management. This is also an annoying experience for customers, causing them to increasingly distance themselves from the brand.


Especially in the service industry, if businesses want to operate smoothly, they need to have a strict process from receiving information until implementation. At this time, Inbound Marketing (a method of attracting customers by creating valuable content and experiences suitable for them) is a suitable choice, based on:


  • Personalized experience for each target audience based on a management system from CRM data.
  • Automated processes such as sending automatic emails according to pre-set content and frequency, or automatically transferring the phone to the appropriate consultant by number, automatically remarketing to customers,...
  • Closely coordinate activities of customer care, Sales, and Marketing departments on the same interface.



With these digital transformation process steps, businesses can optimize human resources from trivial, time-consuming tasks to focus on other important tasks.


Human factors

After all the factors of technology, management systems, automated processes, data, the digital transformation process of organizations, agencies, and businesses can still be affected by human factors such as Leadership, organization, teamwork, and expertise in the above 3 areas. This factor is also the reason why in order to change the traditional business model, organizations need to focus on their employees.


Digital transformation process in the organization


Analyze the current status and needs of the organization

Organizations need to analyze their current status and needs to begin a comprehensive digital transformation process. The leadership needs to determine the scale and operating processes in the business thoroughly and in detail. This process helps them know the advantages and disadvantages that can be improved if digital transformation is implemented.


Assess your organization's digital transformation readiness

Once they understand the development situation and determine a specific direction, organizations need to assess their level of readiness for digital transformation. It is up to each organization to determine evaluation criteria, but businesses need to ensure they have accurate assessments of resources and data.


Human Resources

People are the core element of every organization, especially during the digital transformation process. Digital transformation technology is applied to help people work effectively, save time and effort, and minimize unnecessary errors. However, technology only supports, not replaces. People are still an important factor, they need to improve their awareness and thinking to quickly adapt to technology to use it effectively and intelligently.


To accomplish this, the organization's leadership needs to have accurate assessments of the readiness of staff and human resources in digital transformation, by surveying, reporting, discussing, ... The leadership in an enterprise must be the first to change the vision and perception, then spread it to the staff and the entire enterprise.


Data

Data is also one of the important factors in the digital transformation process. Organizations need to review whether data has been stored in digital files, where it is being stored, which types can be applied to digital transformation, and whether any documents are still stored on paper or not. Are not,...


This is a very important step, helping senior leaders have the most objective and comprehensive assessment, avoiding missing important data. Some data that businesses need to pay special attention to are customers, employees, contracts, sales and payment data,...

Why digital transformation is important? All about digital transformation

Data is an important factor in implementing digital transformation.


Choose the right digital transformation technology for your organization

After determining the situation and evaluating related factors, organizations need to determine their needs and choose appropriate technology that can solve their problems. During the implementation process, organizations also need to clearly, specifically, and frankly communicate the requirements and characteristics to obtain the most suitable digital transformation technology. There may be many obstacles in the beginning, but if you adapt quickly, you can easily optimize efficiency.


Committed to digital transformation

To achieve comprehensive digital transformation, changing culture is the most difficult thing. Organizations need to establish detailed plans, specific strategies as well as commit to the effectiveness of the digital transformation process, to help employees properly understand the importance of this process.


At the same time, the leadership also needs to listen, respond and absorb the contributions of management, employees and those involved in this work. Through feedback, management can customize the digital transformation process to be most effective.


Conclusion

In conclusion, digital transformation is crucial in today's dynamic business climate. As mentioned throughout this article, firms must adopt digital initiatives to stay competitive, relevant, and resilient in changing markets. Businesses may thrive in the digital age by using technology to improve operations, customer experiences, and innovation.  


Prioritize and invest in digital transformation today with Axalize to stay ahead of the curve. We have professionals in the field that adapt to changing consumer expectations, and can help you seize chances for growth and success. Accept the digital revolution and unleash its limitless potential for your company!


Contents