Digital transformation strategy is one of the most popular methods of business development undertaken by modern companies. In 2018, 70% of all businesses stated they had either:
- Started their digital transformation process or;
- Completed their digital transformation process.
Of those, around 60% report they’ve seen a dramatic shift in the way they do business. The advantages of digital transformation have fundamentally changed their business strategy and allowed them to grow in ways that would never have been possible without it.
But what is digital transformation?
Experts in modern technology solutions, the team at Logican are here to help you get a better understanding of what digital transformation actually is.
Simple Terms: What Is Digital Transformation?
Digital transformation is the evolution of current business processes or the development of new methods that take advantage of modern digital technology to solve a specific problem. Digital transformation’s goal is to improve upon business infrastructure and task management in a way that results in direct, positive benefits to business, consumer, or both.
What Is Digital Transformation? The Finer Details
In the modern business world, the rise of digital technology has produced a variety of solutions that make business processes a lot smoother. Archaic methods of providing products or services are no longer necessary. Digital transformation is all about finding a better way of doing things.
The outcome of digital transformation will be different for all businesses depending on the solutions available to them. However, the base result is the same: It changes how customers engage, how internal tasks are handled, and how the business runs.
Digital transformation is meant for pre-established businesses. It’s about taking a process you’ve been doing one way — maybe for years — and changing it to be completed in a new way. This may mean one or all of the points below are achieved:
- The process becomes easier to complete.
- The process becomes cheaper to complete.
- The process becomes more productive.
- The process is more satisfying for the customer.
- The process is more accessible.
- The process is refined to consume fewer resources.
- The process — as a result of other changes — is no longer needed.
- The process is safer (in terms of data security).
New companies and startups don’t perform “transformations” but instead integrate the latest technology into their business to future-proof the company.
Examples of Digital Transformation
We’ve talked a lot about the result of digital transformation, but what does digital transformation actually look like in practice?
As we’ve mentioned already, digital transformation is going to vary depending on the type of business you have and the industry you are in. The same digital tools that help an accountants firm are not going to be suited to a car manufacturer. However, the core principle is the same. We’ll explain it through two examples:
What Is Digital Transformation? Example #1
Our most basic example could apply to almost any business — using digital transformation to upgrade internal document sharing. If you’re currently sharing all documents as paper files, you can introduce a system like Microsoft 365 or Google Documents. These systems allow you to share digital documents as hyperlinks rather than printing them off or sending them as a downloadable file. Being cloud-based, they are accessible anywhere, which means if you need to share a file with somebody and they’re not available in your location, you can easily do so. Unlike a downloaded Word Doc, they can also be edited and collaborated on live. You don’t need to make changes then resend a file — all changes are made to the original document, making it easy to amend, improve or adapt.
What are the benefits of digital transformation here? The files are easier to access, harder to lose, backed up on secure servers, require passwords to access (if selected), and save you money on resources like paper and printer ink.
What Is Digital Transformation? Example #2
In a more specific example, we’re looking at the benefits of our software on digital transformation within the claims management industry. Logican claims management software automates a series of tasks. It allows businesses to produce bespoke claims documents through templates linked to customer profiles, rather than writing them out individually. It also allows customers to submit information about their compensation claims via a custom mobile application, which means they don’t need to contact a sales rep or claims management agent to submit any details.
In this circumstance, performing digital transformation using Logican software allows claims management businesses to cut down on the resources required to handle each claim. Instead of managing onboarding processes slowly, using staff hours, the software does all the menial tasks for them. It allows the business to focus staff time on other tasks. As a result, the volume of claims staff can process will increase or running costs will reduce as the number of hours required to process each claim decreases— therefore reducing the amount of staff needed to handle their current workload.
What Is Digital Transformation About? It’s about the Customer
In our second example, there are obvious benefits to the consumer. Digital transformation provides them with a mobile app that makes their lives easier. Instead of having to deal with salespersons, they can simply submit their details via the app. People value their time and want to do things quickly. They don’t want to be making complicated phone calls and give over all their information when they can type it into a mobile app much faster — most likely while doing other things. Better productivity also means cheaper claims management, which can reduce costs for the customer. Even in our first example — while internal structures benefit — the ultimate beneficiary is the consumer. Easier collaboration and boosts in productivity improve the service you can offer, and thus makes your business better to engage with — as a client or customer.
When considering digital transformation, the question should always be: How can we use technology to benefit our consumer?
Logican are working at the forefront of digital transformation. We’re always looking at new ways of developing our product to improve customer experience and business productivity. If you can find the digital transformation tool you need, get in touch to discuss our bespoke business software development.
