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Why do Businesses Need Digital Transformation?

Digital Transformation In Business

As part of the changes and advancements of digital technology, businesses need to adopt these new changes and improvements to meet the needs and demands of the customers successfully. Nowadays, the majority of business owners tend to look for innovative ways to stand out among other competitors in the market. In any type of business, it is crucial to learn digital transformation while moving forward to keep the business at the peak of success. 

One of the major reasons businesses need digital transformation consulting is to achieve technological integration in their current infrastructure to bring their business to the top. For more information and explanations about these things, keep in touch on the succeeding discussions and explore how digital transformation affects most businesses this time.   

What is Digitalization or Digital Transformation? 

Digital transformation is a process of shifting from one situation to another. It involves modernizing and choosing new software or application to improve the production and overall efficiency of the business operation. Using an obsolete or traditional way of producing goods and services will keep you behind your competitors. That’s why it’s high time to explore the essence of digital transformation and embrace the new changes in the business world.   

If the current business solutions lead to possible productivity loss — be it a resource, revenue, or anything else — it is now time to consider new steps and alternative remedies toward software optimization. Thus, this new opportunity will help you to achieve success in your organization.   

Digital Transformation
Source – simplilearn

What Drives the Businesses Towards Digital Transformation or Digitalization?

The root cause of all these changes and digital transformation always starts with the customers. It is a proactive response by the business owners to adapt to the situations and needs of their customers to win in this business industry. The expectations of modern customers are driven by digital innovations and digital technology. These customers may somehow expect some new opportunities and possibilities in the market.   

When customers see new changes and things anywhere, they also expect these new things from your business. But if you cannot offer them what they want, then the worst possibility is that they will find other businesses that can provide for their needs and desires. Since most customers are interconnected because of advanced technologies, the comparison and contrast from one business to another is extensive.   

Businesses adopt digital transformation or digitalization because of the following: 

Digital Transformation Shapes the Business Across Different Industries 

Digital transformation has a great impact on all industries. Industries today need technological innovations that can transform customer service, production, and distribution of their products and services. If the business will adapt to new changes that would be more useful than before. It is a great opportunity for them to succeed in their business transactions or operations. Two of the most prominent aspect of digital transformation are business intelligence and cloud services which helps organizations step into the realm of the digital world.

Business Intelligence turns the historical data of the company into actionable data. Organizations can use this data to identify the trends of the past customer and make better decisions using cloud services and BI technologies.

Customers Expect Innovation and Digital Transformation 

Nowadays, the majority of the customers are linked and empowered using digital means. In fact, they are connected to the digital world using their new gadgets at home or in the office. As a result, they also expect businesses to be more flexible and adaptable to their needs and wants. Moreover, lots of customers expect that they can just transact business with just one click of their phone, making business online, etc.  

Digital Transformation Factors

Competitive Advantage Over Others 

If the business tends to use advanced technologies and means for doing business, then there is great competition that lies ahead. Indeed, embracing innovations or changes invites numerous opportunities to business organizations. So, to stay on track with competition, companies need digital transformation because business owners believe that it is a key for attracting more customers and potential target market.   

A failure to modernize procedures in the business that might enhance the customers’ digital experience. It may drive the customers to patronize other brands and competitors. So, with the help of digital transformation, the value of the products and services you offer in the marketplace will suddenly increase. You just need to sustain a quality experience for your customers.   

Lose Relevance 

Adapting the changes in the digital era would increase the speed of business productions and overall operations. It’s always good to remember that a business without a digital presence may lose the battles to its big competitors. However, digital presence is not the only important in the business industry. There’s also a need for a daily trend update or knowledge about the trends in the environment. So, you need to make sure that your business can adapt to new trends in the industry to make it on top.   

Less Revenue and Money 

The use of digital transformations and alternative solutions for the business helps businesses economize the cost of infrastructures. Moreover, it successively reduces revenue that needs to be invested in the company. So, in this time of purely advanced technologies, many businesses started to transform their traditional means to digital. It is mainly because they want to cope with the needs of the people in the market and would like to grow in double paces.   

Digital Transformation Essentials
Source – simplilearn

Changing Operational Processes through Digital Transformation 

By digitalizing the operation of the business organization, you can virtualize the working space of your staff members. With this, virtual working space and chat-based collaboration apps, allow your staff and employees to work effectively, even in remote places. It increases employees’ satisfaction using workforce analytics, leading to improvement in their productivity level. Moreover, digital transformation allows decision-making procedures using predictive analytics consulting that is plainly based on data.   

Changing Organization Model through Digital Transformation 

Digital changes of your business organization may involve both digital and physical offers. Also, enabling an easy way of transferring information within the organization. Aside from that, it encourages new procedures for business companies to cooperate. It also leads to the initiation of new products and services for the clients. Business owners can think with new insights or ideas because of digital transformation.   

When the business becomes digitalized, business owners can recognize the gaps and new opportunities in the market. Then, they can use these new opportunities as a basis to create a new organizational model in filling the gap. Furthermore, every organization may try digitalizing works and processes to see how these works for them finally. Because of this, they may also provide the best customer service to their clients towards the improvement of the experience of the customers.   


Digital transformation, also known as digitalization, is a business transformation. It is a change or modification that is being driven and pushed to happen. The organization aims to provide work better and more convenient for everyone, from customers to employees.   

Businesses need digital transformation because of many reasons. However, it’s clearly understandable that their main goal why they need digitalization is because of the success in the production of products and services for the customers. These changes and innovations are only because of the desire to make their business win in their business industry. So, to ensure that most businesses may succeed, and customers will continuously patronize their deals and offers, an innovative way and brilliant ideas as they adapt to the new changes in this digital era are highly needed. Therefore, as a business owner, it is crucial to go with the flow in the marketplace to sustain the best position in the industry.

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Errin OConnor

Errin OConnor

With over 25 years of experience in Information Technology and Management Consulting, Errin O’Connor has led hundreds of large-scale enterprise implementations from Business Intelligence, Power BI, Office 365, SharePoint, Exchange, IT Security, Azure and Hybrid Cloud efforts for over 165 Fortune 500 companies.

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