Digital Transformation: Reshaping Your Business to Meet the Digital Age

Digital Transformation, also known as DT (and at times as DX), is the adoption of digital technologies to transform business processes.

New technologies have emerged, changing forever the way business happens. No one sends snail mail but an email. We file tax returns online and access our bank accounts through a browser or app.

Over the past few decades, digital technology has permeated every business vertical, from managing human resources to accounting, sales forecast, and logistics.

What is Digital Transformation?

Simply put, digital transformation is the use of digital technology for the planning and execution of enterprise strategies. There is no limit to what can be included.

The first forays were in the early 70s as businesses moved their records to huge mainframes the size of a room. Those were mighty expensive IBM machines, and very few companies could afford to do so.

The coming of small but powerful desktops in the '80s and the evolution of easy-to-use interfaces changed the pace.

Today it is quite impossible to start a company without some degree of digital technology baked in. At the same time, expensive on-premise servers have given way to flexible cloud hosting. Numerous apps that aid productivity, such as Trello and Slack, are used commonly.

It is not only a matter of making the firm more efficient but also more available to clients 24x7.

Such has been the pace of change that iconic companies, such as Toys R Us, have been swept away because they were unable to keep up with the changing landscape.

Why Digital Transformation?

Why do we need to change? Why is change on such a vast scale necessary? Such questions are common not only from senior managers but also C-suite executives.

Imagine the cost of staying static. RadioShack and Kodak are two iconic American names that come to mind.

When the whole world shifted to online sales, RadioShack persisted with a brick-and-mortar business model. It's not that they lacked the resources. The management chose to look upon Amazon and eBay as a fad.

Over 50% of RadioShack's sales came from cell phones. When you can order any electronic gadget at the click of a mouse, it makes little sense to drive thirty miles.

2. Understanding Technological Innovations

While we are very used to high tech – e.g., AI assistants on smart devices – even top bosses often fail to understand the scope of technology. It is this failure that prevents them from having a vision for change.

Internet of Things is not a buzzword. IoT can do a lot more than getting the refrigerator to talk to your table lamp. It is used to manage everything from trucking fleets delivering vaccines at -40° C to smart supply chains that autonomously order from vendors.

From neural engines to big data and blockchain, there is a lot that can cause a difference right now with off-the-shelf technology. Unless top management understands these applications, it is difficult to achieve change.

3. Embrace New Paradigm

iTunes, Uber, Netflix have made the headlines not only because they adopted new technology at a faster rate but also created new paradigms in the process.

This is not to suggest that you need to be visionary to make your business embrace digital transformation.

Rather it suggests that your efforts be primarily customer-centric if digital transformation for small business is to succeed.

The question has to be how available technology can be utilized to add more value and formulate more customized services.

Without billions in funding, it is rare to change the business environment as these illustrious names have done. But being the second, third, or even fifteenth to embrace the metamorphosis gives you an edge.

Lyft, Via, Ola, DidiChuxing took a page out of Uber's playbook and is giving it tough competition.

4. Holistic Changes

Aim at enterprise-wide reform rather than a piecemeal approach. It is quite impossible that your accounting department belongs to the 20th century while the sales force focuses on being part of the next decade.

Lack of homogeneity would cause stress and interrupt agile workflow. Success in business requires preemptive changes, and those are always easier when all the moving parts are working in tandem.

5. Fluid Organizational Culture

Simply bringing in new acronyms (such as HCM, CRM, or ERP) will not cut it. Digitalization is successful when you have the right team to help you implement the ideas. Managers who can adapt and love to learn new things are the key to change.