Digital transformation is already a fact, whether we accept it or not. Most of the processes, procedures, transactions, activities and behaviors we have in our personal, work, business and diplomatic lives, among other things, are digitized. And those who haven’t… are on their way!
Therefore, in this content we will tell you everything you need to know so that you don’t enter it too late.
Digitalization has brought many benefits to our evolution at the commercial, human, educational, social, professional and many more levels. That’s why it is a must for most rounds. However, don’t get confused by a process that is simple or easy to do.
Today there is general ignorance about what it is and what this concept revolves around. So that you have first-class information, we created this material, in which we will present the main topics so that you are aware of everything related to this methodology.
What is Digital Transformation?
First of all, it is important to note that many experts differ on the exact definition of this concept. However, here we will tell you in a concise and homogeneous manner which is more accepted by the majority.
Digital transformation is the summary and integration of new and innovative technologies, across various areas of an organization, to change and improve the way things work.
Its main objective is to optimize processes and resources, accelerate results and offer added value that allows it to be more competitive in its market.
Digital transformation should not be confused with the digitization of work tools, for example how to buy a new computer or a faster router.
This methodology involves creating and implementing changes in organizational and business mindsets and culture within the business. It is precisely the commitment to new futuristic methods that improves conditions within companies and increases results.
As we said, it can be applied to any area or stage in an organization. However, it requires rigorous scrutiny and analysis, on every sector. Also on collaborator skills, board discussions, relationships with clients and suppliers, and more.
Digital transformation helps companies stay competitive and meet the demands of their customers. In addition, in the medium and long term, this methodology generates enough dividends that it makes more sense to incorporate it into the company.
How Is Digital Transformation Applied In Companies?
As we have said, digital transformation is not a recipe, but a process that is carried out in stages for each department. For this reason, to implement it, we will provide several suggestions according to the sector to be implemented.
Human Resources
The human resources department is one of the departments that carries out the most procedures and tasks in an organization. Therefore, adding tools that digitize and automate the process really helps lighten the workload.
Can be applied, for example:
- Virtual assistant : automation tool for employee services. These chatbots have emerged in response to saving money in human personnel, and thus enabling fast and personalized responses to the needs of your collaborators.
- Machine Learning : data intelligence that allows analyzing information for decision making. It tries to include them in the selection process to determine the best recruiting profile according to the company’s needs.
- Employee Centricity: the context in which organizations regard their employees as key players in adapting to customer needs. Employee experience can be used in human resources to provide answers to current collaborator needs.
Digitization is a great way to align recruitment processes, services and employee experiences to embrace digital transformation.
Sale
Consumers demand stages of sales that are easy, agile and allow them to build loyalty. Using this method you can achieve:
Social networks: having presence and activity on social platforms, in a systematic, but at the same time personal and humane way, can help you create value relationships with your audience and/or clients.
Long-lasting and valuable relationships: building real relationships with your customers is the best way to retain them and keep them coming back. A sales department that studies specific data on its customers and has an analytical process that provides them with measurements of their needs, behaviors and interests, is an effective way to offer more value for their money and attention.
Sharing information online: much of what customers buy physically they have learned digitally. This new behavior means that companies should consider new methods of informing customers via the Internet and assisting them in making decisions to attract them to their products and services.
Increase your sales with new technology!
Accountancy
As a final example, we’ll use one of the most complex and important in a company: the accounting department.
Digital transformation in this field is not only about digitally managing data, but also about using it to generate value and relevant information to make efficient decisions.
- Automate production processes: use analytical tools to find reputable suppliers in a given area, compare prices and study proposals, use artificial intelligence and Machine Learning.
- Mobile audit: control and management of inventory from anywhere, now possible thanks to digital transformation. The fact that an owner, manager or manager can access and review the movement and availability of merchandise in real time is a process that can speed up decision making and lead to greater profitability.
- Big Data for Finance – Capturing and integrating all of your organization’s current and historical accounting data to identify patterns, measure results, anticipate bottlenecks, and solve problems is now possible thanks to digitization. It’s just a matter of finding the best analytical tools, and professionals capable of interpreting the data.
Advantages of Digital Transformation
Speed is the new currency of business. Today’s organizations must quickly meet customer needs and expectations. Companies that are digitally transformed have several capabilities and advantages over their competitors who do not.
But do you know what it is? Next, we teach you.
I. New business opportunities
Digitalization is bringing companies closer to sectors and markets that are not accessible in the traditional way. The rise and acceptance of e-commerce has changed the way products and services are traded.
It is no longer necessary to have a physical presence to enter the market of another country or region. Which has democratized business opportunities for small and medium entrepreneurs.
II. healthier company
Adaptation is a part of life itself. Living things had to condition themselves to the new rules of nature in order to survive. The same thing is happening with companies and digital environments.
New technologies are here to stay and updating processes and operations must take place or you may risk extinction.
Digital transformation enables companies to adapt to the cultural, social and business environment, to keep up with it and promote business continuity.
III. Lower costs
Optimization of internal processes and procedures in each area of the company results in considerable time savings.
Also, being able to do without some tasks results in the lowest resource utilization, transportation, and other variables.
IV. Attracting trained staff
Today’s professionals understand the digital spectrum perfectly. If your company is able to offer a digitally transformed environment, they will surely be tempted to take part to exploit their capabilities and apply what they know.
Companies that decide not to renew risk being looked down upon by a large portion of the workforce seeking working conditions that adapt to market needs and challenges.
V. Improve communication with customers
Having a presence in digital environments and processes brings you closer to your customers and what they think of your company.
Organizations using this tool to create and expand communication channels facilitate understanding with their audience and customer base. This makes it easier to understand their needs and opinions.
As you can see, digital transformation results in a significant paradigm shift for any company, regardless of location. Despite the differences between industries, more benefits can be found from adopting digital processes and procedures.
Importance Of Digital Transformation
Maintaining competitiveness in such a globalized and ever-changing market already speaks to the ability of organizations to quickly adapt to the needs of the sector.
Companies that are quick to adopt this methodology and focus on providing a better experience to their customers through multiple channels will have an advantage over others.
Likewise, digital transformation produces a positive impact in every area of the organization, for example:
1. Relationship with customers
Today, customers have more power than ever. This means that having high quality products and services at the best prices is no longer enough. They need satisfying interactions and experiences to form bonds with brands.
Through processes, tools and digital interfaces that are intuitive, fast and easy to use, users can make transactions effortlessly and feel counted.
2. Process optimization
Without a high level of operational capability, it is nearly impossible to provide a satisfactory user experience. Digital transformation has made it possible for companies to carry out their processes, be it production, administration, management, marketing and sales, in a simplified and automated way.
In this way, an organization can provide its customers, employees, members and suppliers with digital processes to generate efficiencies in every department.
3. Relationships and processes with collaborators
It’s not just about providing your workforce with tools and technologies to accelerate their tasks. It is also concerned with creating a simpler work experience for them, giving them a more fulfilling feeling and adding more value to what they do.
Digital transformation is not just about having technology in every department. It’s about assisting every stage of the organization with tools that facilitate design, manufacture, implementation and, of course, results.
Main Phases To Implement It In Companies
It is important to note that digital transformation does not have to occur in the same process across all areas of the company. It can be understood bit by bit, according to the needs and capabilities of the organization.
Today, the methodology is supported by four pillars: customer experience, organizational culture, business culture and everything technology-driven. These, implemented alternately, go through 3 processes:
1. Leaving the comfort zone
This may be the first obstacle you face when implementing digital transformation in an organization, as members may be used to routine processes and tasks.
Fear of change can cause companies to lose ground for small businesses and businesses that are betting on digitization. And that is evident when a brand starts to generate customers and conversations.
Users solve their problems online, answer questions, and search the Internet for the products and services they need.
It’s time to leave your comfort zone and catch up on updates!
2. Train the team in digital skills
The new paradigm requires staff and members who are able to generate ideas, processes, proposals and solutions in creative and innovative ways, and this is only possible with training in digital skills.
You should consider the following:
- learn to be independent;
- customer orientation;
- Effective communication, namely effective, clear and precise, with customers, suppliers and colleagues;
- Skills to work in multidisciplinary teams to achieve specific goals.
So it is necessary to educate and train the members who can add value to your production chain. It will also leave you with a human resource with ambition and a desire to improve.
3. Create a digital strategy and process
Your business model should revolve around the customer experience, using digital tools and procedures. Adopting new technology is the first step to digital transformation, i.e. software that designs, outlines and executes digital strategy and that leverages each department to accelerate results.
Apart from that, customer lifecycle map design, results measurement, error identification and correction, and planning foresight of the company, are some of the processes that you can start generating thanks to the data obtained from the tool. analysis.
Digital transformation is not a goal, it is a process that takes time, dedication, an open attitude to change, collaboration and a lot of planning. There are new opportunities offered by digitization, but you have to know how to take advantage of them.
The Challenges Facing Digital Transformation
Remember that this is not about applying multiple technologies to simple facts dictated by trends.
It’s more complex than that and requires a commitment to change and an understanding of why a company needs it to continue to be valid in its market, whatever that may be.
For their part, it’s understandable that traditional companies are finding it a bit difficult to adapt and are rapidly changing the operating model they have been accustomed to for decades.
However, companies caught in the fear of change risk being swallowed up or replaced by new digital native businesses.
Biggest challenge
With this scenario in mind, it is worth returning to the concepts of changing mentality and organizational culture mentioned at the beginning of this text. Because? Besides applying new technologies to processes, the biggest challenge is transforming one of an organization’s greatest assets.
Yes, as you might think, the people who make up an organization, regardless of size or commercial value, are the engine. Because what’s the point of a bunch of ideas if there’s no one to execute them, animate them, and change them?
Likewise, when people embody their beliefs, ideas, goals, desires, and fears in the DNA of a company, it becomes a challenge that goes beyond investing in technology infrastructure to enter the personal sphere.
Organizational members at any level, devote a large part of their time and lives to the operation of the project, therefore, any idea that could threaten the stability of the one they have won with their efforts, can be rejected if it is not properly communicated. the right way.
Tips For Following The Process With Your Team
If you are the one tasked with promoting digital transformation in your organization, here are some useful tips when dealing with change in a company accustomed to traditional paradigms:
- Step by step design.
- Get expert advice during all stages of the change process.
- It involves all areas and levels, without exception.
- Share the challenges and opportunities that each region has, let them know that their contribution is important to achieve it.
- Likewise, use language and resources each area can understand.
This change is structural, therefore it is not comfortable to do it suddenly, but it needs to be done continuously and most importantly it requires commitment from every individual involved in the organization.
However, there are other equally important aspects that enable the digital transformation process to be sustainable over time:
- Digital talent: Within the organization, high-profile digital personnel should be discovered while also enabling the entry of new members who are contributing in the largest areas of responsibility.
- Promote digital transformation work: Being a process in constant motion, it must be fed with constant training and updating, to promote the retention of personnel leading this change.
- Sustainable investment: to meet the challenges of a changing market, companies need to visualize the opportunities they can access in the future and invest in them.
Don’t be left behind!
Digital transformation is more than a novelty today. It has become the norm in production processes, management, administration, marketing, public relations and more.
When a company has been in the market for some time and has not yet adapted to the new paradigm, it may take time to stabilize the process so that it begins to deliver tangible and visible results, but that is natural in any process change.
The most important thing about digital transformation is that it is seen as a constant process, with many sides and many options that can be successful if it takes time to learn and implement it within the organization.
It is important to note that there are no shortcuts when it comes to digitization. You can’t move from a human-driven process, to collapse it into a series of digital procedures overnight.
As organizations move down this path, many things about the business model will need to change for all adaptations to be successful. It’s important for you to remember that accepting change is the right thing to do right now. Growing up is everyone’s need.
In this data-filled world, any company or organization has enough information to meet the expectations of its customers, collaborators and suppliers. Therefore, not arousing digital transformation can seem like business suicide, dooming your destiny to failure.
Now that you know what digital transformation is in an organization, let’s take a look at how it relates to and matters to the Latin American landscape.
