But the bad news is that it’s still a fuzzy term for many—and most SMBs are uncertain as to how to tackle it. Most of us are familiar with large enterprise digital transformation stories, such as Best Buy. A digital transformation can go a long way in breaking down social divides and paves the way for solid leadership. Digital transformation can be defined as the acceleration of business activities, processes, competencies and models to fully leverage the changes and opportunities of digital technologies and their impact in a strategic and prioritized way. In a study of 40 digital transformations, companies that focused on culture were 5x more likely to achieve breakthrough performance than companies that neglect culture. 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This is the first post in a two-part blog series sponsored by Sage Intacct that examines digital transformation for SMBs. What is digital transformation exactly? Integration tops the list of complications, followed by difficulty in figuring out which solutions will work best. Business success increasingly depends on putting technology to work to better support your business goals. Pick two out of three.". The experience of customers is at the heart of digital. Listed are a few points that state the importance of digital transformation: Enhanced customer experience; With increasing competition around, it is tough for … Vendors must create more accessible on-ramps to help more SMBs move from aspiration to execution. SMBs currently investing in digital transformation are 1.9 times more likely to forecast revenue increases than their counterparts with no plans for digital transformation and 1.3 times more likely to forecast increases than those planning for digital transformation. Digital transformation: the importance of culture. The good news is that the percentage of SMBs say they’ve heard of digital transformation and understand what it means has grown from 33% in 2017 to 57% in 2019. A necessary disruption, What is design thinking? | Get weekly insights by signing up for our CIO Leader newsletter. Do these innovations brings value to the organization? Naturally, digital transformation will bring success to you largely because of its speed and … But Best Buy took a fresh approach to transform its business and differentiate based on providing a, Workforce experiences, workforce visibility. Heather Taylor. We can say that businesses who are yet to take a leap of faith towards digital transformation, are already late in this race. And finally organizations have deal with external influences such as regulatory laws, changing economy, market competition, and business partner demands. Some prefer to use the termdigital business transformation, which is more in line with the business aspect of the transformation. A Forrester Consulting research study commissioned by Accenture Interactive (click here for report)  found that the key drivers of digital transformation are profitability, customer satisfaction, and increased speed-to-market. We talk with Seth Robinson of CompTIA about the importance of digital transformation, and how to get started. It provides businesses with the opportunity to rethink how to use technology better engage customers and employees, and to meet changing business and market conditions. Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices as well as improving their use of traditional technologies … Business leaders want IT to be focused on business results, innovation, and continuous improvement. The move paid for itself in less than 3 months—and since deploying Sage Intacct, the company has grown twice as fast than its finance headcount. But Best Buy took a fresh approach to transform its business and differentiate based on providing a better customer experience. A solid digital transformation strategy can help you prepare your business and for the digital era. ]. This fundamentally changes how you operate and provide value to your customers. Banks which undertake this transformation can expect reduced costs … Importance of Digital Transformation “ Digital Transformation ” is becoming more than just industry buzzwords – it is the embodiment of industry-changing elements that impacts workforce efficiencies and … The Importance of Data in the Digital Transformation of the Water Industry . Customers demand increased technological capabilities combined with the desire for ease of use. Podcast Transcript. Several years ago, many people thought that Best Buy could not survive against Amazon. Subscribe to access expert insight on business technology - in an ad-free environment. Even if you wish to become a fast follower, if not the leader, then also pace is essential. The Importance of Digital Transformation Technology has permeated in every aspect of our lives. Importance of Digital Transformation. Several years ago, many people thought that Best Buy could not survive against Amazon. If your business is spending so much time just trying to keep up with the daily grind that you have no time prepare for the future, the wear and tear on the business will eventually slow down growth or even bring it to a halt. To keep it simple, it is the integration of digitalization into every area of banking. Capgemini and MIT Center for Digital Business in a three-year study defined an effective digital transformation program as shown in Figure 1 below: Capgemini Consulting Digital Transformation. [ Get an inside look at 10 real-world digital transformations at today's leading organizations and find out what digital transformation really means. But transformation is not just about technology innovations and their disruption on the business. Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. Organizations need to evolve to address the changing business landscapes. Cultural transformation Redefining an organisation’s mindset and culture can be the most important element when it comes to digital transformation. 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. A flourishing digital culture is a tremendous asset to any digital marketing team, and can help facilitate everything from the ready acquisition of new digital skills amongst team members to the bettering of the digital environment in … Digital transformation also means more than simply asking “How can we do the things we do today, only faster?” Instead, it means questioning “How do we need to adapt our business processes to keep pace with new market realities, and how does our technology strategy need to change to support this?”. This integration leads to fundamental changes in how the financial institutes operate and deliver value to their customers. However, the overselling of the concept, as Gartner highlights, is approaching the trough of disillusionment. What is Digital Transformation? When you talk about data and Digital Transformation of the Water Industry the first things that comes to most people’s minds is concepts such as “Big Data” and “Data Mining” in reality the importance of data to the water industry is so much more. What are the customer demands and expectations on the business (and the demands on technology to meet business needs)? The time is now to think, plan, and build a strategy to transform workflows and processes with modern technology solutions that will empower your business with the capacities and agility necessary for success in the digital age. SMB Group defines “digital transformation” as: how businesses use digital technologies to create new or modify existing business processes, practices, models, culture, and customer experiences to meet changing business and market dynamics. The Need is Real, But Getting Started Can Be Hard. Goodway Group switched from entry-level accounting and spreadsheet solutions to Sage Intacct to automate these workflows, streamline project billing, and improve gross profit visibility across campaigns. These digital business transformations are influenced/driven by the following factors: Technology innovation, customer behavior and demand, and external environmental factors. SMBs’ recognition of and desire to transform their businesses for a digital future is real, but the vast majority are still unprepared or underprepared to act on it. However, the execution is challenging. Digital transformation is just as relevant for SMBs. It provides businesses with the opportunity to rethink how to use technology better engage customers and employees, and to meet changing business and market conditions. Read on for answers. Digital transformation — the use of technology to radically improve performance or reach of enterprises — is a hot topic for companies across the globe. It decentralises production by facilitating mobility and remote communication. Note that digital speed is as much as 5 times faster than a traditional business. CIO Now, the finance team has automated the drudgery, and can spend more time analyzing data and helping Goodway to make better-informed decisions to meet its goals. Digital Transformation is a trend that can be materialized only when the organizations can rethink business processes. Best Buy now focuses on advising customers, not just selling to them. These are performance orientated benefits and show that digital transformation is proven to increase productivity and helps companies enhance customer experience. What challenges do you face? As a result, the primary focus of digital transformation is to use cutting-edge technol… Mark Edmead is an IT transformation consultant and trainer. Digital transformation is imperative for your company’s success. Digital transformation goes beyond individual application areas like marketing, financials, HR or services. Another digital transformation success story comes from Nokia, a once dominant force in the world of mobile communications. Ideally IT spending is driven by the need to meet business requirements. Digital business transformation is the ultimate challenge in change management. It impacts not only industry structures and strategic positioning but it affects all levels of an organization (every task, activity, process) and even its extended supply chain. By Ashley Friedlein November 4th 2013 10:59. The need of the patient becomes the focal point of the business. In the simplest terms, DT is all about using various forms of digital technologies so it helps the customer (in this case the patient) lead a better life. 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 … Digital transformation refers to the use of digital technology to better serve customers. Importance of digital transformation. Employees increasingly expect to use more powerful, easy, consumer-like tools, and always on information access to get their jobs done more efficiently as well. Digital business transformation is the ultimate challenge in change management. As technology innovation accelerates, it can be difficult to keep up with new jargon—let alone figure out whether the latest bright and shiny buzzwords are relevant for your business. Here, he talks about how to embrace digital communication transformation and how to achieve quick results. Only 24% have started executing on a digital transformation strategy, and just 19% say they have well-defined plans in this area. This is imperative if you are expecting the workforce from all departments to come together and embrace change. Laurie has built widespread recognition for her capabilities and insights in the small and medium business (SMB) market in several areas, including cloud computing, mobile solutions, business solutions, social networking and collaboration, and managed services. Are they easily adopted or is the organization experiencing difficulties integrating this new technology? In fact, digital transformation is business transformation. Digital transformation is the process of using digital technologies to create new business processes, culture and customer experiences. Change is hard, but thinking and planning for digital transformation is critical to ensure viability and growth. Most of us are familiar with large enterprise digital transformation stories, such as Best Buy. |. It offers in-home consultations and installation services, and Total Tech Support contracts provide customers with unlimited support for their devices and appliances, no matter where they purchased them. What is Digital Transformation—and Why is it Important for Your Business? From business processes and models to business activities and each single activity of the organization. More importantly, they want it fast. In my experience, this is  easier said than done. The company improved delivery times, introduced a price matching program and transitioned to a data-driven marketing strategy to offer customers customized recommendations and assistance. Copyright © 2020 IDG Communications, Inc. And if you are not embracing it, should you? SMBs know how important it is to start planning for digital transformation: More than 80% agree that technology is reshaping their industries, businesses and workplaces. To support its transformation from print to digital, Goodway Group needed more efficient and flexible solutions for key processes, such employee expense and commission tracking, invoicing, and financial consolidation. The world’s obsession with the latest technology, social media and apps revolve around a desire for an easier life. A solid digital transformation strategy can help you prepare your business and for the digital era. There is a lot of talk at the moment about this process, where an organisation overhauls its capabilities in order to reach digital enlightenment. This brings us to the next factor: customer behavior. The company was also spending so much time preparing financials to show historical, descriptive data that it never had the time to focus on how to do things differently and improve processes. The number one choice was “improving the experience of customers, ” followed by growing revenues, improving differentiation, and reducing costs. The list of reasons could go on, as digital technology has many benefits for businesses, but the best way to know them all is by going digital now. When they get new capabilities elsewhere—from round the clock support to fast returns—they want them from your business too. Digital transformation in the industry provides an opportunity to combine practices and ways of doing that result in new techniques, skills and sources of income. Artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), sensors, analytics and other technologies are teaming up to create sweeping changes across a wide swath of industries and functions. The secret to digital success, CIOs disrupt IT operating models to align with digital business, Why companies struggle to cultivate digital strategies, Your digital initiative’s biggest test may be measuring its success, CEOs' lack of success metrics dampens digital prospects, Digital transformation: Why it's important to your organization, CMOs much more likely than CIOs to lead digital transformation, Top 9 challenges IT leaders will face in 2020, Top 5 strategic priorities for CIOs in 2020, 7 'crackpot' technologies that might transform IT, 8 technologies that will disrupt business in 2020, 7 questions CIOs should ask before taking a new job, 7 ways to position IT for success in 2020, 20 ways to kill your IT career (without knowing it), IT manager’s survival guide: 11 ways to thrive in the years ahead, CIO resumes: 6 best practices and 4 strong examples, 4 KPIs IT should ditch (and what to measure instead). The whole idea of a digital transformation has to be communicated well within an organization. Over the past 28 years, he has provided IT transformation and business improvement services that align information technology with business goals to drive bottom-line performance and growth. Today, Best Buy is reaping the benefits, with adjusted earnings per share surging to a record $5.32 in fiscal 2019. Digital transformation offers a number of advantages and options, including inventory management, detailed insights, enhanced real-time customer interaction, increased productivity, more reliable financial forecasting, more assertive business decisions, and improved resource allocation. It is also about how these technological innovations are adopted and used. Business leaders must constantly challenge their organizations to ensure this change can unlock productivity gains and significant competitive advantage all while delivering exceptional customer experience. It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. Learn about three driving forces of digital transformation – technology, people and business – and how organizations can benefit from creating a customer-centric business. Here are some of its key benefits: It reduces costs as a result of time savings in processes. To further clarify, the study asked decision-makers about their broad strategic priorities over the next year. Prior to SMB Group, Laurie worked in analyst roles as a Partner at Hurwitz & Associates; Vice President of SMB Insights & Solutions at AMI-Partners; and Vice President at Summit Strategies, where her original research of the emerging cloud computing model earned her broad recognition as a thought leader in this area. Digital transformation is an excellent opportunity to rebrand your offerings. These are followed by age-old problems including a lack of IT skills, time and money to get things off the ground. Be it in our homes and our offices, throughout industries and society as a whole, technology empowers dramatic … People want valuable solutions to their problems. What is digital transformation? All of them will lead to increased profitability and success. What are your thoughts on digital business transformation? Simply stated, it’s about identifying how you must adapt your business to drive customer loyalty and maintain a competitive edge in the digital age. Technological innovations leads to what we call technology disruptions. Regardless of size or sector, one of the most important changes a business will undergo is ensuring they have the choice to send their communications via paper or digital channels. Is your organization embracing digital transformation? For instance, Goodway Group, a third-generation family-owned business, has evolved over the past ninety years from a printing press, to a direct-mail marketer, and now, into a digital marketing organization. However, due to the rise and dominance of Apple and Android, they ended up falling behind and subsequently exiting the business. Laurie’s nine years at Digital Equipment Corporation, including her last role as Director of Market and Competitive Intel, Sage Intacct300 Park Avenue, Suite 1400San Jose, CA 95110, Sales Inquiries: 877-437-7765Customer Support: 877-704-3700Partner Support: 866-201-9401, © Copyright 2019 to 2020 Sage Intacct, Inc. | Privacy Policy | Site Map | Home, © Copyright 2020 Sage Intacct, Inc. | Privacy Policy | Site Map. Reminds me of what I used to tell my clients when I ran a software development company: "You can get it done cheap, done well, or done quickly. As they embark on digital transformation, many companies are taking a step back to ask whether they are really doing the right things. Today, there was a webinar hosted by Dun and Bradstreet on the ‘Importance of data in the digital transformation strategy’. In the next post, I’ll discuss how to start planning for and executing on a digital transformation strategy. Hi, I’m Heather Taylor from Simplicity 2.0’s podcast. Machines are getting also smarter. Today, we’re going to test an idea. Lift in customer engagement (75%) – One of the first and most important benefits of Digital Transformation is that it leads to a great lift in … A quick Google search will identify “digital transformation” as one top buzzword out there today. Copyright © 2016 IDG Communications, Inc. 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