Some studies estimate that digital transformation in companies will mean an increase of 1.25 trillion euros of GDP in the top 10 world economies. However, what is exactly digital transformation and what is its use in companies?

This last decade we have experienced crucial changes in the business sector and in society in general, many of them related to the Digital Transformation Age. Some concepts such as globalization, technological evolution, artificial intelligence, Big Data, Business Intelligence or Machine Learning are part of the daily vocabulary of the economic ecosystem that surrounds us and it’s evolving rapidly.

What is digital transformation?

While there is still much discussion about the definition of digital transformation, we can define it as the process carried out by organizations and companies to reorganize their strategies and work methods to gain efficiency and obtain greater benefits with the digitalization of their processes and the use of new technologies.

That is to say, it is about the use by companies of technological development and digital tools to generate even more benefits. A complex process, which does not only involve technological issues, but as a whole means a complete transformation of the way of doing things. Therefore, it means changes in human resources, the workspace, and everything that has to do with the development of a product or service.

Digital transformation is complex and implies not only the use of new technologies by the company, but the adoption of new business models and new organizational structures tailored to the Digital Era.

These new models must be global, flexible and dematerialized. Despite the fact that many companies have begun with some changes, it is necessary for digital transformation to reach the entire business, since society and the economy are advancing in giant steps.

Characteristics of digital transformation

As we have said, digital transformation does not mean simply making use of new technologies, but applying a cultural change in the business organization. What does that mean?

Focus on innovation and efficiency

Cultural change must go through adopting a more innovative and efficient vision. It is not just about implementing new things such as a corporate email system.

People as the heart of the change

The team should encourage this cultural change. Therefore, it is essential to train employees to acquire knowledge on the use of new technological tools, but also to understand this new way of doing and understand the business..

Aim towards a flexible organization

One important part of this digital transformation is also to understand the new way of working and doing all things. Collaborative environments, instant communication tools, time and space flexibility will allow optimize the work and gain efficiency.

How to apply digital transformation

Digital transformation implies a change of business mentality. Therefore, the first thing to do is to define how to develop and apply this cultural change within the company. From here on, companies can adopt measures to facilitate this digital transformation.

1. Training of employees. In order to employees to accept this cultural change and put it into practice, they first must understand what exactly this change is. Train your employees in digital transformation. Tell them what benefits they will obtain with the change, what implications it will have for them and make them part of the achievements and complications of the company. Involve the employees in all stages of the business process, make them experts, and make them feel part of the project.

2. Master the digital tools. Technology is not everything, but to adapt to this world it is essential to master many digital tools. Companies can no longer choose between being or not on the Internet and must implement a good Digital Marketing Plan. Also, use other technologies to improve the benefits of the company such as Artificial Intelligence, Business Intelligence or of the Machine Learning.

3. Big Data. Now more than ever we are learning the value of data. Companies who are able to gather data and analyze it accurately, have an important advantage to succeed. Big Data is a concept that has changed data exploitation by businesses, and it is imperative that every serious company work with it. Along with Big Data, it is important to emphasize the weight of R&D. Society seeks new, exclusive, and different things. When was the last time you offered something new to your market? Without a good analysis of your data, this development is almost impossible.

What are the Benefits of Digital Transformation?

Some studies estimate that digital transformation in companies will mean an increase of 1.25 trillion euros of GDP in the top 10 world economies. However, what is exactly digital transformation and what is its use in companies?

Given all the above, the question that all companies ask themselves is, what are the benefits of digital transformation for my company? Although most of the benefits have already been pointed out above, the main benefits of this business culture change are:

Better relationship with the employee. Healthier work environment, direct communication, and motivation processes. All this means more motivated employees, happier with the company and with their work. Therefore, they will be more productive, and it will increase the efficiency of the team.

Better communication with customers. The implementation of some systems allows us not only to know our audience better, but also to communicate with them easily and effectively.

Increase productivity. With the help of new digital tools, decision-making becomes simpler and more agile. They allow evaluating the impact of actions, monitoring processes and analyzing decision-making in a more understandable way.

Reduced costs. These digital tools allow to optimize a good part of the internal processes, which in the long term means a cost saving.

A more efficient, innovative and entrepreneurial company. If a company gains in efficiency, it has more time and resources to innovate, think of new things and move forward. Digital tools mean more capabilities.

It facilitates the recruitment of qualified personnel. Who would not want to work in a company where the employees are cared for, have a career plan and are a valuable asset for the company?