Digital transformation is a continuous process of adopting and using new technology to streamline an organization. Here, we’ll discuss the role of digital transformation consulting companies in transforming your business into a successful model.
Digital transformation is adopting and implementing new technologies in a business to increase efficiency, streamline operations, improve customer satisfaction, and generate higher ROI. It helps organizations unlock their full potential using data-driven models to make quick, effective decisions.
The global digital transformation market is projected to reach $1009.8 billion by 2025. It is expected to grow at a CAGR (compound annual growth rate) of 23.1% to touch $3810.05 billion by 2030. World Economic Forum says digital transformation could be worth $100 trillion by 2025 (in industrial and societal markets). Another report shows that the digital transformation spending will be around $3.4 trillion by 2026.
These are a few examples to show the growing prominence of digital transformation in today’s world. In this blog, we’ll discuss the importance of digital transformation consulting services and how you can enhance your business by digitally transforming the internal processes.
Digital transformation is a continuous process that also includes cultural changes in the organization. The top management, employees, stakeholders, and customers should adapt to the new mindset of using digital technology for various purposes. Generally speaking, digital transformation combines two concepts – digitization and digitalization.
Digitization transforms analog information into digital information (scanned photos, documents, etc.). Digitalization is the use of digital technologies to improve business processes. Together, these help an enterprise gain a competitive edge and achieve its goals.
Here’s why businesses need digital transformation:
The business strategy forms the core of an organization. It guides the decision-makers and other employees to perform their jobs effectively. A robust and well-thought-out strategy will strengthen the establishment across all levels and verticals. By partnering with digital transformation strategy consulting service providers, businesses can develop a unified model aligning the business vision, mission, objectives, industry standards, and customer preferences.
Organizations cannot follow the same traditional operational methods in our ever-changing market conditions. It is necessary to adapt to the changes to stay relevant and provide customers with quality products and services. Digital transformation helps streamline and realign operations through data analytics, edge computing, cloud transformation, etc. Different digital technologies can be implemented in industries like manufacturing, supply chain, finance, insurance, healthcare, travel, real estate, eCommerce, etc.
Resources are vital for an enterprise to run smoothly and be productive. However, businesses can reduce the consumption of resources without compromising quality or production values. Digital transformation helps in identifying weak areas and eliminating unwanted steps to reduce resource consumption. This allows the business to optimize resources and save money while delivering high-quality performance.
Modern businesses and manufacturers need to have agile processes to cater to diverse customer requirements. With personalized products and services becoming a norm, the enterprise cannot continue to rely on rigid production/ service models that have little to no room for changes. With digital transformation, businesses can introduce agility into their core functionalities and improve their overall capabilities.
Similar to the previous point, digital transformation consulting firms help businesses become more flexible and scale their operations as the business expands. Instead of starting from scratch every time or buying new technology, many digital solutions can be scaled and customized to suit specific requirements. That way, a business can continue to use the same technology even as the transaction volume increases and deliver efficient results.
Businesses need to embrace change to stay relevant and compete with newer establishments in their industries. Innovation and change can go a long way in boosting the business. However, how an enterprise innovates and which technologies it chooses determine the result. That’s why many organizations hire digital transformation firms to bring flexibility into their businesses. This reduces the risk of losses due to experimentation.
Digital transformation involves all areas of the business, including human resources. It is important to involve employees in the process and keep them in the loop. Setting up training modules, webinars, etc., will make it easy for the people involved to adopt new technology and make the transition smoother. It also reduces stress and uncertainty regarding the changes. Digital transformation service providers play a role in people change management.
Digital transformation is the way to a better future for many businesses around the world. It is ‘the’ solution to transform a traditional business into an agile, scalable, and sustainable model with future-proof processes and technologies. Be it a startup or a large enterprise, digital transformation solutions can be customized and implemented in any organization from any industry.
The following solutions play a vital role in accelerating business transformation:
Cloud-based platforms are remote servers and storage centers to run several applications and maintain the business database. Instead of building the entire IT infrastructure on-premises, organizations can host a majority of it on cloud platforms. This offers greater efficiency, scalability, and flexibility. Additionally, businesses can take advantage of the ecosystem of technologies offered by cloud platforms like Microsoft Azure, Google Cloud, AWS, etc. Cloud migration and cloud transformation are important digital transformation consulting services offered by service providers.
Artificial intelligence has grown leaps and bounds over the years. Yet, there’s more to come in the future. Leveraging AI and ML tools helps a business improve its productivity and performance. Instead of relying on manual methods to collect and analyze data, organizations can implement AI-based solutions to automate data analytics, predictive analytics, etc., in all industries. Artificial intelligence allows businesses to use the data-driven model for decision-making and helps discover new growth opportunities.
Automation is another digital transformation solution that can benefit an enterprise by streamlining its operations and optimizing resources. Service providers work with businesses to identify repetitive tasks that can be automated using advanced technology. Entire workflows can be automated to minimize human intervention and save time. This allows employees to focus on other important tasks. Furthermore, enterprises can enable cross-department automation to reduce risks, decrease costs, and increase operational efficiency.
Business intelligence is a set of methodologies, technologies, processes, tools, and software to collect, clean, format, store, and analyze large amounts of data to make informed business decisions. Digital transformation consulting companies offer end-to-end services to strategize, build, integrate, deploy, customize, and upgrade the BI tools to suit the organization’s requirements. Platforms like Power BI, Tableau, Qlik, etc., offer personalized data visualizations through AI-based dashboards for employees to access actionable insights in real-time.
Customers have a crucial role in determining the success of a business. Today’s customers want personalized products and services, tailored recommendations, quality, sustainability, and efficiency. Digital transformation allows businesses to invest in user-friendly customer service tools like AI chatbots, self-servicing portals, mobile apps, AR/ VR devices, etc. By making the customer’s interaction with the business memorable and enriching, enterprises can strengthen their brand reputation and gain a competitive edge.
While there are many reasons to hire consulting companies to initiate digital transformation, the following three are the most important ones.
Most organizations don’t have the required technology or expertise to use it. Hiring experts can be cost-intensive and time-consuming. Moreover, the gap between supply and demand makes it hard for businesses to hire the best talent quickly. This problem can be easily solved by partnering with digital transformation consulting companies. These third-party companies offer tailored solutions based on each client’s needs. They fill the talent gap in the enterprise by completing the project and providing training for existing employees to use the new tools effectively.
Though not all service providers offer end-to-end support, many of them do. It means that the consulting company will take responsibility for the entire digital transformation process, from the start and continue to offer long-term maintenance and support services. The pricing will be flexible with different plans and customization to help organizations choose what services they want. Additionally, this reduces the pressure on the business and doesn’t eat into the existing resources. The business can rely on the service provider for troubleshooting and upgrades.
As mentioned earlier, digital transformation is not a one-time process. It is continuous and recurring where you periodically scale and update your technologies. Hiring a reliable service provider also enhances business value and increases ROI. For example, healthcare digital transformation consulting is aimed at improving the overall efficiency and quality of services delivered by hospitals and healthcare centers. From streamlining administrative operations to enhancing patient care, digital transformation can help better the establishment in many ways.
Digital transformation consulting is not limited to completely outsourcing the project to a third party. Businesses can collaborate with outside experts to transform their processes and manage the entire project within a defined time and budget.
Digital transformation consulting companies help organizations adopt and embrace new technology, increase efficiency, strengthen core values and functionalities, enhance customer experience, and improve ROI.
Talk to us to find out how digital transformation can boost your business value.
A digital transformation consultant has varied roles and responsibilities. The consultant has to analyze the business processes and current technologies to create a comprehensive strategy. Then they have to choose the right technologies, set up data pipelines, identify roadblocks and overcome them, move the systems to cloud platforms, create third-party app integrations, and monitor the new processes to eliminate glitches and increase efficiency.
The digital transformation consulting approach is where a business hires a third-party expert service provider to handle the process of digital transformation end to end. This allows the organization to bring experts to work on their systems and processes. It reduces the risk of choosing the wrong technologies and effectively bridges the talent gap in the business.
A digital consultancy focuses on helping businesses from different industries drive intelligence and overcome challenges. From strategy creation to data engineering, cloud transformation, implementation, maintenance, and support, the consulting firm offers several services that can be tailored to suit each client’s requirements.
A digital transformation service is a combination of various strategies, solutions, technologies, and services where a third-party consulting company helps a business achieve its objectives by investing in advanced technologies. It is a long-term process and includes maintenance and support after the new processes are set up.
The following are the six pillars of digital transformation:
When digitally transforming a business, the top management and service providers have to focus on these six factors to ensure they achieve the desired results.
The three P’s of digital transformation are people, process, and platform. People come first since talent plays a crucial role in building and implementing new solutions. The process is the second P and deals with how the business revamps its internal operations. The platform comes next and represents the technologies adopted by the business.
Fact checked by –
Akansha Rani ~ Content Creator & Copy Writer
