Digital transformation is the process of adapting your business to new technology. It’s essential because technology innovation is accelerating rapidly. According to IDC, digitally transformed organizations are projected to contribute to more than half of the global gross domestic product (GDP) by 2023, accounting for $53.3 trillion (IDC, 2020).
As a result, businesses that don’t upgrade their technology risk being left behind by their competitors.
In a digital transformation, enterprises invest in big data and analytics to convert every available bit of information into insights for making better decisions related to process automation. The purpose of the digital transformation is a strategic and fundamental shift from simple digitization to enterprise-wide transformation.
Digital Transformation uses big data to create new business models, optimizes operations and procedures, and transforms products, services, and customer experience. The goal is to enable the entire organization to move to a customer-centric orientation, from the top-down and bottom-up.
Most businesses today have been digitized at some stage in the process, but a few are known as “digitized organizations.” These organizations have adopted a data-driven approach to their business models, striving to achieve a level of transparency that allows them to understand and track their customers. Digitizing your business is not about new technology solutions.
Why is Digital Transformation Important?
Digital transformation is the most critical change we have seen in our lifetime. It’s not just about keeping up with the latest technology, and it’s about shifting your business strategy and identifying new markets to maintain growth throughout this ever-changing era. Not only do you need to update your product and service offerings, but you also need to transform your people and processes so that they’re ready for the digital age.
How to Achieve Digital Transformation
It is becoming more and more apparent that in order to achieve measurable growth in your business, you need to partner with a digital transformation company like Udacity. The most important part of building a successful digital transformation strategy is ensuring that your current talent has the latest digital transformation training and skills needed for success in a digital marketplace.
The first step in digital transformation is to identify the business’s core objectives. These areas might include customer experience, operational efficiency, or financial performance. If you can’t find a clear business case for how these objectives are mutually supportive, then you should rethink your strategy before investing time and money into digital transformation.
How to Measure the Success of Your Digital Transformation
Digital transformation is transitioning from a traditional to a more efficient digital organization. The goal is to be less reliant on paper and manual processes while embracing digital systems that collect data and deliver information in real-time. Digital transformation includes upgrading existing technology and integrating new technologies into the business.
This is important because it helps organizations become more agile, strategic, and efficient. To start transforming your business by upskilling employees, connect to our Udacity for Enterprise page to learn more about how partnering with Udacity can speed up your digital transformation.