- what is digital transformation?
- digitalization vs. digital transformation
- reasons for a digital realignment
- conclusion - how to start?
What is digital transformation?
Many companies have slept through the digital transformation (also digital transformation).One of the biggest mistakes was the assumption that a website was enough for a digital company. However, the market has changed so quickly that even large, established companies are struggling with the consequences of digital transformation. The Corona crisis has also exacerbated the development.
Unfortunately, it has become possible for well-functioning business models to disappear within a very short time and be thwarted by new ones. Examples include streaming platforms, which have replaced classic video rentals, and online sales, which are showing enormous growth rates and displacing classic retail.
Many companies therefore have to realign themselves in order to keep up with the competition, which is increasingly coming from start-ups and companies from abroad. It is no longer enough to simply set up a homepage or a back-up system. Rather, innovative solutions are needed.
But first, what does digitization and digital transformation mean anyway?
Digitization vs. digital transformation
Digitization and digital transformation are often used synonymously. Although technology and its progress play an important role in both, the two terms must be clearly distinguished.
Among other things, digitization means converting analog media (documents, etc.) into digital data. Today, however, the focus is more on the digitization of processes and the technologies required to manage them.
Digital transformation (or digital change) describes the consequences and effects of digitization. The term stands for change processes that are triggered by new digital technologies and affect society as a whole. In particular, this also applies to companies, which have to adapt to the new behavior patterns of their customers and circumstances, which are constantly changing.
Digitalization helps us to do our work more efficiently, while digital transformation describes the entire digital transformation in society. While the transition is associated with many hurdles, it also offers a unique opportunity to overtake one's competitors and gain market share.
Reasons for a digital realignment
This also leads us to the benefits of the digital transformation. We have briefly described the 5 most important ones here. These naturally influence each other and must not be viewed purely in isolation.
Acquisition of new customers
This is achieved primarily through the increased reach of online portals. Through the Internet, it is even possible to expand your business worldwide, which previously may have been possible only with great effort.
By automating processes (e.g. appointment management, document management, etc.), working time can be used more effectively, which ultimately reduces personnel costs. However, this does not necessarily mean that jobs are lost. Automation can also create new jobs, and the existing workforce has more time to take care of work that promotes the growth and expansion of the company.
Increase transparency and agility
Since all documents are stored centrally, they can be quickly made accessible to everyone. As an entrepreneur, you have the opportunity to get a better overview of the company and its processes. The customer benefits from the fact that changes are implemented more quickly due to better communication with the company.
Increase customer loyalty
Better customer experience makes customers more likely to be retained. Requests can be answered automatically, giving the customer the feeling that they are being taken care of. Advertising can be sent individually to the customer, which leads to a better customer experience and more sales.
New business areas and differentiation
The digital transformation opens up new business areas that are great for diversifying the portfolio. For example, it is possible to sell your customer not only the product in a stationary manner, but also online. Additional services can also be offered. For example, the packaging of a shipment, an express delivery or an individual adaptation of the product for additional costs.
Conclusion - How to start?
Sales is a numbers game and you need to have the man power with the right skills to achieve your revenue and we can be your Sales Force as well as marketing team.
After the reasons for a realignment, the question now arises: What should the digital transformation look like? Unfortunately, there is no XY scheme that can be applied across the board to all companies. Even companies in the same industry with the same business model differ in their organization, size or corporate philosophy. Individual solutions are therefore required.
Nevertheless, there are basic rules and methodical approaches that can help in creating a digital roadmap. For example, the digital transformation must become a clear part of the corporate strategy, and managers and employees must be committed to it.
In every company there are many areas that can be digitized and automated. The aim should be to first optimize as many processes in the company as possible, then digitize and finally automate them. Recurring tasks and processes are particularly suitable for this.
However, many companies have little digital know-how and limited resources. Therefore, it is difficult to make a comprehensive development plan. Here it is advisable to use external consultants who already have experience in the implementation and can point out any hurdles. The consulting company should not only advise you, but actively accompany you on your way. This is the only way to correct any deviations quickly.
However, companies should be aware that digital transformation is an ongoing process and never ends. Constant adjustments are required to stay on track for success in the long term.
We can offer you a strategy workshop in this area in order to develop a tailor-made roadmap for your individual challenges.
I hope you enjoyed our first blog post and the information provided was helpful to your situation. In the future we will regularly write more blog entries for you and deal with certain topics. The focus for the next few weeks is on digital / automated sales and how you can benefit from it.
At Matika, we specialize in sales digitization, marketing automation and digital candidate management. If you would like to learn more, we invite you to a free initial consultation with one of our experts. To do so, please click here.
Written by Jakob Etzinger
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