Digital transformation is the need of the hour for organizations to effectively handle competition and customer preferences. Here, we’ll discuss the top digital transformation technologies that can accelerate business growth and increase revenue.
In today’s world, SMBs, MSMEs, and large enterprises need to adapt to the changing conditions and be more agile, flexible, and scalable. This requires a change from traditional and fixed systems to modern-day data-driven processes. Digital transformation is essential for businesses to streamline operations using various advanced technologies.
According to Polaris Market Research, the digital transformation market is worth $880.28 billion and is expected to touch $3.74 trillion by 2030 at a CAGR (compound annual growth rate) of 23.6%. Many companies are actively investing in digitally transforming their establishments. As per IDC, businesses have already invested $1.85 trillion a couple of years ago, and this amount will almost double by 2026. Furthermore, 74% of organizations say digital transformation is a priority.
But what technology is used in digital transformation? How do digital transformation technologies work? Do you need more than one technology to digitally transform a business? How can digital transformation consultants help your business? What are the mistakes to avoid in the process of going digital?
Let’s find out in this blog.
Digital transformation is a continuous process of integrating digital technology into different business areas. It changes how you look at business operations and provides valuable customer experience. However, digital transformation is not limited to adopting new technology. It also involves cultural changes where employees are an integral part of the process.
Many leading brands have partnered with digital transformation companies to achieve their goals and stand apart from competitors. For example, Nike launched an online shopping app to provide direct access to its products. The company used data analytics to understand customer behavior and streamlined its marketing strategies. This led to increased sales, more customers, and greater reach in new markets.
Digital transformation companies use a combination of technologies to implement the necessary changes in your business and streamline the processes across all levels.
Artificial Intelligence
Artificial intelligence is an integral part of the digital transformation tech stack. Be it AI-driven chatbots, virtual assistants, automated tools, or recommendation engines, many aspects of internal and external processes can be enhanced by adopting artificial intelligence tools. It can enhance decision-making, shorten the production cycle, and increase customer satisfaction.
Machine Learning
Machine learning is a subset of artificial intelligence that deals with computer algorithms. ML models are highly useful in data analytics. Since the algorithms are trained to use feedback to improve themselves, the models get stronger and more accurate over time. Digital transformation involves the use of ML models to derive real-time analytical reports to make data-driven decisions.
Computer Vision
Computer vision is also a part of artificial intelligence. It uses machine learning and neural networks to enable computers to process digital media like images and videos to derive meaningful insights. It is used in the healthcare sector to identify diseases in the earlier stages and provide better treatment. Computer vision is also useful for security and surveillance.
Automation
Automation is a popular digital transformation terminology and refers to the use of technology to achieve the desired outcomes using tools. Here, the human intervention is minimal to provide the initial input or take a corrective action (if necessary). The rest of the tasks will be handled by the computer/ software/ robot/ machine/ etc. For example, automation can ensure continuous production even when the supervisor is not on the site.
Data Warehousing
A data warehouse is one of the digital transformation technologies necessary to streamline data storage in an organization. It is a centralized data repository with structured and semi-structured data collected from numerous sources. The data warehouse can be on-premises or built on the cloud like Azure, AWS, or Google Cloud. It is integrated with data analytical tools and contains vast amounts of historical and present data.
Mobile Technology
Mobile technology makes it possible to set up hybrid and remote teams in an enterprise. Employees can work on the go and have access to the latest information and analytics from mobile devices. This ensures faster and more efficient decision-making in grabbing market opportunities. For example, a sales manager can check the reports using the mobile version of Power BI to contact a lead or close a B2B deal.
Big Data and Real-Time Analytics
Data is available in abundance and can be used to gain insights about historical patterns, trends, etc. Analytics is an integral part of digital transformation and enables you to make informed decisions in a quick time. Real-time analytics provides instant reports through personalized data visualization dashboards.
Cloud Computing
Cloud computing is a must-have digital transformation technology to make your IT systems more flexible, scalable, and cost-efficient. It promotes innovation and reduces the cost of maintenance while also providing greater access to advanced tools.
Augmented Reality and Virtual Reality
AR and VR digital transformation technologies offer immersive experiences for users and promote customer engagement. Mobile apps built using these technologies provide customers with a realistic virtual experience of the company’s offerings. AR/ VR technologies are also used in the educational sector to create immersive classrooms.
Blockchain
Blockchain is one of the popular digital transformation technologies providing greater transparency and data security for various transactions. It promotes decentralization while providing a means to track progress and maintain proper records. It is used in the finance and healthcare sectors.
Internet of Things (IoT)
The Internet of Things (IoT) promoted connectivity between machines and streamlined data sharing. IoT devices can be attached to equipment to act like sensors. They can also be used as wearables by workers to automatically collect and share data with other applications for analytics, alerts, and decision-making.
5G Technology
5G technology offers faster and more reliable connectivity to facilitate real-time data sharing and analytics. For example, IoT devices rely on 5G networks to instantly share the collected data with other applications. It minimizes the risk of latency.
Robotics Process Automation (RPA)
RPA is used to automate recurring tasks like data entry, updating records, customer support, generating invoices, and so on. It reduces processing times and takes the pressure off employees, allowing them to focus on core aspects of the job. It also promotes greater workplace efficiency and productivity.
Edge Computing and Quantum Computing
Edge computing brings data processing closer to the data source instead of processing the data at the central repository. This digital transformation technology reduces latency and enhances real-time processing. Quantum computing is an advanced, complex technology that handles intricate problems that cannot be resolved by ordinary computers. However, quantum computing is still in the early stages.
Digital Twin
A digital twin is a virtual representation of a product, system, machinery, or even a factory. It is created using the data collected in real time from the sensors and other sources. Digital twins are used for simulation, experimentation, and observation. The changes are made to the virtual version to determine the response before they are implemented in the physical space.
The digital transformation team has a diverse role to play as it integrates different types of transformations to create a comprehensive new data-driven model in the enterprise. Generally, digital transformation is classified into the following types:
Business Process Transformation
Business process transformation is where the internal operations and processes are changed to introduce new technologies when working on day-to-day jobs. Digital transformation technologies like automation, robotic process automation, real-time analytics, etc., are used to promote data-driven decision-making. The main aim here is to reduce the cost of production, improve the quality of products and services, and enhance customer experience.
Business Model Transformation
Business model transformation refers to the changes made to the core business model and the relevant strategies. It helps establishments unlock the power of data and make innovative decisions to achieve their targets. The digital transformation company will provide a detailed blueprint to initiate the transformation of the business model (for example, a manufacturer may shift from being a product-centric unit to a customer-centric unit by offering greater personalization).
Domain Transformation
Domain transformation is where a business expands into a new domain that is not entirely relevant to its sector but offers great possibilities for growth. Here, it helps to understand the different digital transformation trends and identify the ones that can boost your business. For example, Amazon is the largest online marketplace. However, it is also one of the top three cloud service providers through AWS (Amazon Web Services).
Cultural Transformation
Using various technologies for digital transformation is only one part of the process. The organization’s culture plays a vital role in implementing and continuing the adoption of digital transformation. Employees should be involved in the process from the beginning to ensure they understand how new technologies can help them at work. Creating training programs, compiling educational resources, and providing a positive workplace environment make it possible to digitally transform the business at every level.
Cloud Transformation
Cloud transformation is a well-known process where the data stored on-premises silos and physical devices are migrated to cloud platforms. Even the enterprise’s IT infrastructure with different apps, systems, security layers, databases, etc., are transferred to remote cloud platforms and data centers. This makes it easier for digital transformation companies to offer their services and effectively manage business processes even from remote and offshore locations.
A business needs to implement digital transformation technology at different levels to become successful. These five elements are crucial for digitally transforming an establishment.
Digitalization
Digitalization is the process of streamlining and automating recurring operations to promote greater efficiency and faster results.
Leadership
Strong and reliable leadership will guide the rest of the organization to follow the lead and work together as a unit, resulting in greater success.
Technology
Digital transformation technologies are the core of the process since every development/ change in the business is based on them.
Culture
Organizational culture will continue to affect how digital transformation technologies and procedures are accepted and implemented in the business.
Customer Experience
Customers are the key for a business to become successful. Prioritizing customer experience during digital transformation will help create consistent results.
Experts will integrate different digital transformation technologies to create a robust and future-proof digital adoption strategy for your business. This depends on your industry, goals, vision, mission, etc.
Talk to reputed digital transformation consultants to revamp your business and align the systems, processes, and tools with your targets and customer expectations. By diligently applying digital transformation techniques, you can increase your ROI, enhance customer experience, and gain a competitive edge.
Talk to us for more information!
Fact checked by –
Akansha Rani ~ Content Creator & Copy Writer
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