Technology marches on, and so do businesses wishing to adapt to the ever-changing world. Digital transformation is one of the processes employed by today’s companies to adapt their business approach and evolve as technology advances.

Every aspect of an organization’s workflow is affected by digital transformation, and the benefits are not just about cost-cutting or budget optimization.

1. Streamlining Workflow

The world has experienced a digital transformation before; the technology boom of the 1990s introduced the World Wide Web, and many businesses transitioned from paper and physical records to computers for the first time.

Over the years that followed, hundreds of different application suites, tools, and programs were developed for these devices. Many businesses adopted what they could, often with little regard for consistency.

A 2018 study revealed that the average company uses 129 applications in its operations. Many of these applications are custom-made, older, or stand-alone (they aren’t integrated with other applications).

Today’s digital transformation enables integration, centralizing a business’ information and intelligence into a single database and encouraging the use of integrated application suites, connected and consistent with one another. 

For example, a typical iPhone app development process is building activities that send users to other applications, giving a sense of interconnectedness.

By intentionally building tools and applications designed to interact and provide a streamlined experience, Android app developers can create a productivity suite that your business can use for everything your workforce needs to do their jobs.

2. Leveraging New Technologies

There are many examples of technologies driving a company’s digital transformation. You may already be familiar with two of the most common: 

• Reliance on mobile devices and mobile applications
• Cloud computing

These technologies allow us to stay connected, access resources from anywhere, at any time, revolutionizing the way most businesses approach work.

Other examples of digital transformation technologies include:

• The Internet of Things (IoT; Internet-connected sensors and devices other than computers and phones)
• The adoption of digital twins (virtual models of live products for data collection and simulation)
• Artificial intelligence or machine learning

A practical example of new technologies enacting digital transformation is the ingestible pill, a medical device designed to record images of the gastrointestinal tract without the need for invasive surgery.

The device uses its wireless connection to the internet to send images into the cloud, allowing a physician to retrieve them from any device and offer medical advice, diagnosis, and treatment accordingly.

3. Improving Data Collection

Although collecting customer data is not a new practice, the technologies employed to make it possible now offer more tools than ever before to interpret the data and make practical decisions.

Machine learning is a technology that relies on a large quantity of input data for training and producing AI-generated results, such as pattern detection or behavior prediction. For example, a machine learning algorithm can use collected customer data to predict purchasing habits.

4. Enhancing Customer Experience

The customer experience (CX) is the direct result of the customer’s interactions with a company. A digitally transformed company that has taken steps to adopt technologies is, by nature, more capable of meeting modern customer demands.

A critical element of customer experience is the medium of interaction used. In addition to the classic methods like telephone and email, businesses have access to various, novel ways of interacting with customers: social media platforms, website-integrated live chat, mobile applications, and more.

Not only do they provide alternatives to the classic communication methods, but they are often less frustrating to use and can provide the customer with the help or guidance they need more quickly.

A positive customer experience driven by digital transformation increases the likelihood of creating highly engaged customers. In turn, they are more likely to develop brand loyalty and refer your company or your products to their networks (friends, family, work colleagues, connections, etc.).

Digital Transformation is the Way Forward

Digital transformation is more than just a trend; it redefines every aspect of your business.

A 2020 IDC study estimated that the world is investing approximately $6.8 trillion total into digital transformation. By 2022, 65% of the world’s GDP will be digitized in some form, describing it as preparing for a new normal.