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What Digital Transformation is Really All About People make the mistake of confusing digital transformation to mean altering ones mode of processing things. What it means is simply to transform your physical or material things into something that is computerized or digitized, in digital format so that the process is more efficient. It transforms paper forms into electronic forms, cash becomes computer information or bits, paper documents becomes paperless forms, logs and invoicing of sales transactions become sales force automation and ERP. In essence that is indeed digital transformation but the word denotes something else. If we stop at the digitization part of the definition, it actually missing a lot of things because this actually means a digitally transformed business that involves the entire ecosystem of the business. This includes supply chain, partners, customers, crowd, and employee. If you merely stop at the digitization part, you will miss the transformation part which is designing everything from the physical and material order into a virtual form. And there are many good reasons for doing this. When we speak of digital transformation then we are speaking more than digital products and services, but about the processes that create, enable, manage, and deliver them in a virtual arrangement.
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If a business falls on the wrong side of this transformation a good reason for this is the lack of data processing in real time. This has always been the shortfall of those who follow traditional ways. In this fast paced age it is important to analyze data and historical data mining when it comes to identifying opportunities and determining risk.
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By using real-time insights to enable customers, workers, supplier, and machines to seize opportunities immediately and take collaborative action at the moment of greatest impact is to have a managing edge over all your business resources. To capture the individuality demanded by customers and to improve the economics of your business processes, you need to increase automation, usability, collaboration, and real time processes to improve efficiency. Connecting your internal business processes, labor, ecosystem partners, and customers to deliver a new level of transparency creates an added value which goes beyond the boundaries of the enterprise. You can leverage the power of these new networks and reevaluate how to widen the value that you deliver to each including your customers if you are on top of these boundaries. To be able to deliver innovative outcomes strengthened by better tools and updates equipment to comply with recognized needs, there is a need to develop new solutions, processes, services, and business models that are buoyant to your suppliers and customers. The recurrence of these pattern constitutes the dynamism of these type of transformation. This is a never ending cycle that is developing constantly and if you are behind digital transformation or if you fall on the wrong side of it, you are on your way to extinction.