Digital transformation – What does it entail?

You have probably heard the term digital transformation in some context. But what does it really mean and how should you relate to it? In this article series in two parts, we explain the concept and give you tips to get started.

We live in a digital age and in step with technological development, customers’ needs, behaviours and expectations change. In order to be competitive, companies must meet these changing needs by actively taking advantage of the new conditions that technology can offer. Perhaps this is also why digital transformation has received increasing attention in various contexts. In this introductory article, we try to find out what the concept of digital transformation means, what the benefits are and why you should invest in it.

What is a digital transformation?

In short, one could say that digital transformation is about change. It could also be explained as a tool or approach that takes advantage of technical conditions to gain access to new opportunities, new innovation and new business models.

If we compare digital transformation with digitizing something, digitization means that you do something analogous to digital, for example that you make a digital pdf of a physical document. Digital transformation, on the other hand, is not just about making an existing product / service digital, but about how we use technology to improve, renew and streamline the various parts of a business. Among other things, it can be about us changing the way we work, think and act.

The digital transformation is not something that happens automatically just because we are in a digital age. Companies must make purposeful and strategic decisions to bring about the changes that transformation entails. Often you may need to change basic structures and cultures through major organizational changes. Sometimes it is necessary to increase the use of digital technology, review skills needs and increase the digital understanding of decision-makers. In this way, the digital transformation will be a journey of change and a long-term strategic work. That is also why it is more about leadership and strategy, rather than new technology.

To be competitive, you must also meet the changing needs of customers. A digital transformation is therefore also about starting from the users to a greater extent and working more customer-driven.

Therefore, digital transformation should be part of your business strategy

Digitization gives us new conditions and new opportunities to run businesses and do business, and we must take advantage of this. Today, it is not uncommon for new technology to shape an entire industry. Companies that do not keep up with digital development risk being overtaken by start-up companies, which have both a technological lead and agile working methods. There are a number of examples of markets that are changing as a result of people changing their behaviour when newly established companies have offered smart and user-friendly solutions. E-transfer are examples of services that have challenged classic means of payment and helped pave the way for a more cash-free Canada (mobile money would be its equivalent in Uganda). There are even those who believe that Canada can become the world’s first cashless society thanks to this digital development. Uber and Airbnb are two other examples of new players who have challenged an entire taxi and hotel industry – even though they do not own any cars or homes of their own. What companies do is that, through new technology and that private individuals are on both sides of consumption, they offer digital and customer-driven services based on users’ needs. They simply change the rules of the game and change an entire market.

It is inevitable that technology will play an increasingly important role in the everyday lives of both people and companies. New technologies and companies will emerge and challenge existing ones. It is important to work proactively so that you are ready to follow the wave of change when it comes. Focusing on digital transformation is simply a tool and an approach to creating the right conditions for managing the fast-moving world we live in today. Those companies that have not already begun their digital transformation will therefore most likely need to begin their journey in the near future. 

Contact us today to see how we can build out your digital transformation for your business. 

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