Digital Transformation: 3 main things every business owner should know

Business owners are the first ones who are affected with any major technological discovery or change. It affects the way they run their business, the way they produce products and delivery services, and the way they handle their employees. The change that has been going on for quite a while is Digitalization.

In this article, we well talk about the main part of the digitalization era, which are influencing the whole world. But before we get started, lets just explain the main word here: digital. Although is it used in many ways, its purpose is to describe an intense information exchange and interaction between physical devices and resources.

Digital Technologies

Digital technologies can be put in 5 main categories:

• Mobile Technologies – creating technological digital platforms
• Social Networks – creating digital platforms for interaction and fun
• Cloud Computing – creating technological digital platforms
• Big Data – creating an analytical digital platform
• Internet of Things (IoT) – creating technological digital platforms which are connecting many devices

The Technologies listed in these 5 categories are mainly known and used by everybody. Less known (the second category) are the technologies such as: 3D printers, robotics and drones, virtual reality, artificial intelligence…They have the option to use data, analyze and process it, and connect the device with its surroundings.

The main characteristics of digital technology are:

• simultaneously using both main and secondary technologies to produce products and deliver services
• the ability of installing them into existing devices which helps it to analyze and distribute data
• intensive data exchange
• the ability to digitalize a business and its platforms
• creating digital platforms.

Digital Economy

The main message of this article is that everything is getting digitalized, including the economy. Digital economy is a term used when describing new models of business, manufacturing, services, markets and fast developing business sectors, which are based on digital technology.

It’s an economy of knowledge, innovation and information. There is a never-ending process of creativity and new value creation.

These are the 4 fundamental parts of Digital Economy:

1. Independently developed technologies are simultaneously used together.
2. Progressive business models are being integrated. (design thinking, agile business models, disruptive innovation…)
3. Digital business platforms, which enable worldwide connection and data sharing are being used.
4. Using digital business models and innovation, there is a never-ending creation of new value.

Being a part of digital economy is not complicated, the main thing is to get to know the way it works, and not to be afraid of new, developing technologies.

The core business skills every business needs to have, for mastering digital economy, are:

• innovative integration of IT-models
• agile app development
• creating disruptive business models
• using digital business platforms
• advanced data analyzing.

Digital business transformation

Now that you know the main parts of the new digital era, it is time for your digital business transformation.

What does this mean?

It is referring to constant use of digital technologies in business, which main goal is developing innovative business strategies and disruptive business models.

New businesses are trying to offer better products to customers, which are improving their user experience. The new value, that is being created, is mainly focused on customer satisfaction, which leads to profit and business development.

Digital business transformation means changes in:

• strategies
• structure
• processes
• models
• and organization culture.

The main challenges in digital business transformation are:

1. Maintaining to constantly use modern technologies, which requires time, resources and education.
2. Changing the importance of IT in the business structure. IT is now a part of creating new business value and innovative business models.
3. Using IT as a strategic business function, with supervision for people in highest positions.

Conclusion

As you can see, one does not go without the other, digital transformation and digital economy are connected. If you are trying to transform your business, and bring it into the digital era, you should start from the beginning, and not stop until the transformation hasn’t reached every part of your business model.

A great tip is to put the IT sector in the middle of your business strategy, and ask yourself these questions:

• are our business strategies and models connected with IT and digital technologies?
• which business value are we getting from the IT sector?
• how long does it take for us, to develop new services and products now?
• how efficient is the IT sector now?
• which new skills are needed?

After that you will get a clear picture of what needs to be changed. If you need help with new business solutions which can help your digital business transformation, such as: app development, AI or ERP, feel free to contact us!