What is digital transformation & why is it important for businesses?

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What is Digital Transformation?

In layman terms, digital transformation (DT or DX) means using technology to create differentiating ways of doing business to drive growth in new and existing markets.

The definition of digital transformation can be different for every organization because every business is unique. So, we have collected a spread of definitions to help you find one that applies best to your needs.

What is Digital Transformation? Definition by Experts

There are a plethora of definitions of digital transformation, and here are a few:

Brian Solis’s definition of DT is entirely holistic, “[DT implies] the realignment of, or new investment in, technology, business models, and processes to drive new value for customers and employees.”

He adds that the realignment can help businesses compete effectively in an ever-changing digital economy. But, the main focus of digital transformation should be on realignment to bring in value for customers and employees.

The Wikipedia definition highlights DT as the changes associated with the application of digital technology in all aspects of human society.

Austria, Municipal Government, states: “DT means modernization or the renewal of business processes and business models supported by IT, so business processes and business models are at the center of attention and not IT.”

Peggy Chen, CMO of SDL, says: “At its heart, digital transformation is about connecting better with digital customers.”

Paige O’Neill, CMO of Sitecore, says: “It’s important to keep in mind that digital transformation is not a single project or change, but an organization-wide restructure that extends to the people, the operations and the technology.”

Many experts and influencers cite digital transformation as building a better experience for customers and employees with the help of innovative technology.

Organizations should chalk out the objectives and outcomes that suit their needs best. As Global CEO of Cognizant Softvision Andres Angelani aptly writes, “the right definition [of DT] rests within the organization itself.”

Go ‘digital’ or go home. What is digital transformation?

So, you’ve decided ‘to put yourself out there’? But before you move with your digital strategy, it’s important to understand what it really means and thus how to be able to benefit from it.

Digital transformation is often viewed as an implementation of digital technologies into all areas of business in order to build more sustainable relationships and better understand the needs of customers.

But this is just one of the ways to look at it. When talking about digital, we can think of discovering new frontiers and using innovation and technologies to push your business. It’s about finding new possibilities of an existing service in order to design and deliver a better experience for your customer. Some might argue it’s a new way of interacting with customers. None of these definitions is truer that the other but what we can all agree on is that today digital transformation is the force that moves businesses forward.

Why it’s important to have a digital transformation strategy?

Strategy is more important than technology – states MITSloan report. And they’ve got some facts to back their opinion.

Simply going digital isn’t going to cut any more. Only 15% respondents from companies that are at the early stages of going digital say that their company has got a clear digital business transformation strategy. While for digitally mature companies, where digital first has helped transform business models and processes, as well as increase talent engagement, the number is more than 80%.

It seems like being a digital company is a key factor in many respects today. Potential employees name being digitally enabled company as one of the reasons to seek employment within the organization.

For companies, a digital business strategy is viewed as means of transforming their business, streamline processes, and making use of technologies to enhance their interaction with customers and employees, and deliver excellent customer experience at the same time. Failing to plan in that field comes with a great price. One of the biggest obstacles to becoming digitally mature company is lack of digital transformation strategy. 50% of survey participants named it the main barrier to digital maturity.

And what is the state of digital, you might ask? In a race between enterprises and startups, the later seems to be leading. 55% of startups have already adopted digital transformation strategy, by contrast, only 38% of traditional enterprises did. But this doesn’t mean that the race is over. Among the established organizations, the wind of change is blowing heavy with 89% of companies either already adopting or planning to adopt a digital-first business strategy, with Services (95%), Financial Services (93%), and Healthcare (92%) at the forefront.

Top Ecommerce Framework for Digital Transformation

Magento:

Magento is a highly responsive e-commerce platform and can easily be customized in terms of design and functionality to suit your business needs. With extensive community assistance, strong features and full control over your website, Magento leads the crowd and beats the other open-source platforms.

Shopify:

Shopify is a great choice for scaling e-commerce businesses. With SEO features like the meta title and meta description, Shopify helps increase your online visibility. Depending upon the scale of your e-commerce business Shopify also offers Shopify Plus, a more advanced platform for growing businesses. With Shopify Plus, you get a dedicated store manager who helps you to set-up your e-store and assists with the complexities involved

WooCommerce:

WooCommerce is a secure and reliable e-commerce platform that offers easy shipping and payment integration services. WooCommerce is a great choice if you are a beginner, but if you are a scaling business, you might want to consider some other option since this may slow down your e-store a little

OpenCart:

Mostly preferred by startups and small e-commerce businesses, this open-source platform has everything that you need to set up your online store. This e-commerce website development framework is quite famous among e-commerce developers as it has simple features and offers easy accessibility. With strong community support and easy installation, this platform offers a cloud version also.

BigCommerce:

BigCommerce is quite similar to Shopify. With many built-in features, you can easily customize your online store as per the requirement. BigCommerce provides a full-fledged e-store solution and is a lot less complex than many other e-commerce development platforms

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