Digital Transformation

If we contextualize the need for digital transformation with history, it is easier to understand what is happening within the business.
Companies that were formed before the advent of the Internet face a major challenge: many of the rules that guided business progress in the pre-digital era no longer apply.
The good news is that change is possible! These companies can transform and flourish in the digital age.

Digital transformation is a process in which companies do use of technology to improve performance, increase reach and ensure better results. It is a structural change in organizations, giving an essential role to technology. But then pretty much every company is investing in it, right? Wrong! This concept is much broader than having a fanpage or one corporate blog. It is a radical change in the structure of organizations, from which technology starts to play a central strategic role, and not just a superficial presence. This takes time and consumes resources, but it is not just large organizations that can implement digital transformation programs, because this is not just about who has more money.

Rather, it is necessary to understand the entire process that leads to this change and work collaboratively to achieve it. This, in itself, makes the digital transformation a much more management challenge than just from marketing or technology. Among the factors we need to understand is the impact of this type of change on society at large, which brings us to the next topic.

Impact of digital transformation on society

It is essential to understand that digital transformation has a profound impact on society at large. From this conclusion, the value of implementing change programs in companies becomes clearer. But how does this impact happen? It's simple, think about how the use of technology is transforming our lives every day. Things got faster, the volume of information is infinitely greater than before and it continues to increase.

All of this makes people more distracted and demanding than ever. This is the first change: there is a clear behavior change.

In addition, our lives have become much “easier”, as automated services and products offer a convenience that was not thought of a few years ago.

Thinking from the point of view of utilities, as in the case of hospitals, law enforcement and fire departments, this means more lives saved thanks to technology.

On the other hand, new challenges arise, such as inconveniences related to companies' lack of preparation in relation to customer complaints and the act of scanning without worrying about the user experience throughout the purchase process.

With the evolution of technology, both new solutions and problems arise that need attention, which forces companies to adapt to meet society's demands.

That's where the digital transformation comes in! Through it, it is possible to optimize various processes. The possibilities are limitless.

Future and Generation Z

Generation Z is made up of people who were born since 1994 and are considered digital natives. According to Fast Company, by 2020 Generation Z will represent 40% of all consumers.

This generation grew up surrounded by digital devices. Therefore, they will be the people who will demand these changes the most.. And that future is not far away. Nowadays, the oldest of the generation are already in the job market, graduating from colleges.

Because they are multitasking and can process information faster than any previous generation, members of that generation are annihilating marketing practices that have become obsolete.

They are able to consume digital content on multi screens, using a wide range of devices simultaneously. In addition, they already have purchasing power and expect companies to be digital.

And what is the role of companies in this context?

They are tasked with providing generations with digital workspace technology that will enhance the employee experience, with the goal of meet your different expectations and preferences..

You need to think about your customer's constant change to understand the importance of digital transformation.

technological progress

Digital transformation is not just another buzzword, a fancy term to say that it's worth investing in Facebook Ads or something like that.

Rather, it is part of a much larger process, which is called technological progress. There are three main phases, with the digital transformation being the last.

See what each of these steps consists of, and how they culminate in this movement we are currently witnessing:

Digitization

Digitization is described as the process of transition from analog information to a digital form. Like this?

It is about the representation of signals, sounds, images and objects in the digital medium through binary values (each value is represented by 0 or 1).

In other words, data is transformed into bits and stored in electronic devices.

Entire industries benefited greatly from this process, as it became much easier to store and protect important and sometimes confidential information.

Scanning

Digitization is already much more comprehensive and consists of real changes made in organizations through technology.

This includes some very advanced concepts such as Big Data, internet of things, blockchain, cryptocurrencies, among others.

A common mistake is to believe that digitization means using more IT, but the examples cited show that it goes far beyond that, as it involves taking a more holistic view of technology in order to bring about change.

digital transformation

Now we come, finally, to the digital transformation, which is described in technological progress as “the overall and general effect of digitization on society”. What does that mean?

With digitization in its complete state, new opportunities for change and evolution arise for organizations of all kinds.

It is possible — and sometimes necessary — to change socioeconomic structures, organizational patterns, cultural barriers and even laws.

Thus, we can say that digitization is the conversion, digitization is the process and digital transformation the effect.

To make it even easier to understand what digital transformation really is, we've made a complete video that explains even more about the subject. Check out!

6 Myths About Digital Transformation You Need To Forget

It's already been possible to get a sense of how the digital transformation impacts people's lives in all spheres of society, isn't it?

Consequently, this also profoundly affects the way we do business today.

The problem is that many companies are still unable to initiate a transformation program because they are caught up in myths about the subject.

So before I go into more about this strategy, check out 6 of these myths you need to erase from your mind right now and how to rightly think about each of them:

1. This subject is only for technology companies

It's very easy to hide behind the thought that digital transformation should only happen for companies that were born in a digital context, such as e-commerces, SaaS and other “digital native” businesses.

But is this really the case? No way! Any company, no matter what segment, can benefit from developing a culture that favors the digital.

No wonder there are so many tools, paid or free, available for just about any type of digital initiative imaginable.

2. It all comes down to customer experience

Another myth is that digital transformation is all about creating the best customer experience possible. It's true that it really matters, but it's not enough.

Again, it is worth noting: digital transformation is a process that needs to be spread throughout the company, so of course it's not all about the customer experience.

3. Transformation comes from small initiatives

How about letting the small initiatives of the employees develop in order to, little by little, create a truly digital organization?

In theory, this idea might seem to make sense, but things don't work that way. Transformation needs to come from the top. Why?

Such a big change needs not only freedom, but the initiative of leaders to develop clear programs for change and implement them in companies.

Thus, the company will be able to change in an organized and efficient way and employees will understand what is expected of them in this transition.

4. The IT sector will carry out the transformation

Information technology, or just IT, needs to be very well structured to guarantee the level of performance that a digital company needs.

However, between affirming this and saying that the digital transformation is the responsibility of the IT team alone, there is an abyss!

What needs to be is a approach between managers and who is going to put the technology to work, not outsourcing responsibilities in that way.

The IT sector is just one of those involved in any company's digital transformation. But it is important to ensure that it is sharp to meet everyday demand.

5. You can wait and see depending on the industry

The demand for innovation is real and urgent across the market and anyone who decides to wait and see what happens will likely not like the scenario they find.

Think, for example, of agribusiness. In the past, this industry was practically synonymous with acting free from technological processes. But what about today?

It is one of the sectors that make the best use of technology to anticipate possible difficulties, optimize processes and, because of that, obtain better results.

This shows that it doesn't matter the segment, The risky thing is to postpone this change.

6. Just develop multiple digital initiatives

This is perhaps the biggest mistake on the part of executives and decision makers in companies.

The thinking goes something like this: “if my company already has x digital initiatives in progress, I'm already part of this transformation”.

I wish it were so easy, but the question goes deeper than that.

It's great to develop strategies like content marketing — which, by the way, plays a big part in the digital transformation — but these strategies are just part of the solution.

So stay firm with your digital strategies, but don't fall into the illusion that they are the transformation itself.

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