IT NEWS 2018-10-29

Digital Transformation

Digital Transformation means that digital technology enables us to identify and analyze data on customer experiences through various channels and also to have a process that responds in real time, thereby seeking new business opportunities. For a successful digital transformation, it's necessary to have the strength and ability to adapt to change.

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Digital Transformation means that digital technology enables us to identify and analyze data on customer experiences through various channels and also to have a process that responds in real time, thereby seeking new business opportunities. For a successful digital transformation, it's necessary to have the strength and ability to adapt to change.


"AI-based solutions, autonomous vehicles, and service robots." Scenes from SF movies are now our reality.

Smart Factories in which machines have replaced humans is an example of the digital era.

Global manufacturers are building automated factories with state-of-the-art equipment and IT technology where human touch is no longer needed under the name Smart Factory.


With the introduction of robots and automation in 2016, Adidas is producing hundreds of thousands of shoes at factories with not more than 20 workers, and leading global companies that are adopting such equipment and systems.

With the development of IT technology, Amazon has become the world's biggest retailer without one single store, and companies which provide new services like Airbnb and Uber were born.

Digital transformation is technology used effectively to innovate. To be more precise, digital transformation means transforming traditional systems and processes into a digital foundation.


There is a slight difference from the fourth industrial revolution. The 4th Industrial Revolution refers to the overall change in politics, society, and economy as a result of technology change. Digital Transformation is focused more on the business sector, which is "Digital Infrastructure Construction and Product Launching-> Growth of eCommerce Market and Business-> Change to a digital-based business strategy. "

 

Businesses are forced to adapt to change in technologies, and recently these transformations are seen no longer as a choice but as essential. Digital transformation can be divided into three areas: customer experience, operational processes, and business models.

 

Digital technology allows us to identify and analyze data on customer experiences through various channels and processes that respond in real time, thereby seeking new business opportunities.

The traditional brick-and-mortar companies have to adapt quickly to these changes.


There is the example of the marketing company which has changed the nature of its business by giving the customer the right to choose the advertisement they want to see, as well as the story of the retailer digitalizing its distribution network so it can now take orders worldwide online and one-stop. Personalized insurance and travel products through GPS tracking or behavioral analysis are also examples of digital transformation.


Consulting firms have come up with a methodology for this change. The core is learning and analyzing through various channels, followed by decision making, direction setting, and expansion.

In the end, it is necessary to establish a vision that the enterprise itself will change and to build up and implement an appropriate system as well as the needed organization and personnel.

 

That's why a lot of companies are building their own digital divisions staffed with the right people and systems.

To make successful digital transformation happen the following is requested.


1. Execution by CEO's vision (Leaders on top)

2. Step-by-step vision according to the company's competence (Customized planning)

3. Dedicated organization and authorization for quick decision-making

4. Sequential improvements starting with small project teams

5. New business models (Destructive innovation)

 

In the end, it means that you need to have a strong organization and the ability to change.

Companies that have successfully accomplished these changes are growing as they overcome corporate crises and embrace change.

Starbucks has overcome difficulties by innovation based on customer experience. They provided mobile-oriented orders and benefits, personalization through customer analysis, and enhanced experiences through various IT technologies.


In fact, Starbucks provides mobile orders,  smartphone charging stations at stores, connecting mobile apps with uber, and collaborating with music service to offer new experiences to customers.

Burberry, a luxury brand, also provides services through collaborations of online and offline stores. They built a process that made it possible to produce and deliver products that were introduced at their fashion show in only 7 weeks to their customers.


It is not necessary to say that the hiring of IT staff, the driving force of leadership and set up a system were essential. A strong organization with the will to adaption - with an emphasis on adaption are the ultimate advantage in the competitive business environment of today.