Digital transformation is the process of enhancing or renovating current processes via the use of digital tools and technology. This process entails enhancing or even wholly replacing antiquated, sluggish, arduous, and often manual procedures with more straightforward, efficient, and frequently automated ones. Digital transformation is critical in reacting to the disruption of work and business environments, where most organizations increase their efforts in response to the abrupt shift. According to Van Veldhoven & Vanthienen (2021), eight in ten organizations accelerated their digital transformation programs in 2020. Additionally, many businesses ascertained that the epidemic demonstrated the need for a more agile and scalable technology environment. It is clear that technology is not an option in the contemporary era but a fundamental business strategy that must permeate every aspect of an organization. This discussion covers various reasons why digital transformation is necessary within an organization.
According to Abolhassan (2016), everyone nowadays expects on-demand services. In other words, today’s customer, whether internal or external, expects the same degree of technological capabilities in the workplace as they do in their personal lives. In this case, enterprises are quickly increasing their need for more flexible hybrid information technology services and agile networking capabilities to fulfil customer expectations, and providing an outstanding user experience is critical to business transformation. This includes familiarity with information technology personnel and systems and the usability of programs for employees or external customers.
Increased staff efficiency is another aspect contributing to the demand for digital transformation. Engagement is a significant topic, especially when dealing with a dispersed workforce that is barely together in a particular place. Employers are continually on the lookout for innovative ways to increase productivity, and digital technology plays a crucial role in supporting people in becoming more productive in their primary responsibilities both in and out of the office. Digital transformation helps essential business functions such as human resources to move away from manual processes and automate crucial chores such as payroll, allowing them to focus on more strategic organizational prospects (Yildiz, 2021). In addition, the importance of digital transformation in promoting creativity via remote work and on-demand access to technology and services is critical for developing an environment favorable to employee success.
Strengthening competitive edge and business relations is another factor contributing to the need for digital transformation (Abolhassan, 2016). Customer demands are growing, and industry rivalry is intense. Businesses are becoming more interdependent, cooperating with subcontractors, suppliers and distributors, and specialist consultants to supply diverse products and services to customers. Managing these partners often requires document-based communication, which was previously seen as a time-consuming hindrance to productivity. However, digital transformation has the potential to reimage this process and contribute to the creation of a more transparent, rapid, and accurate procedure, allowing employees to be more successful and productive on a daily basis. By building a digital process and connecting it with the rest of the organization, businesses stay ahead of the curve and expand their reach to prospective partners. Internal procedures may be made more efficient and adaptable as the firm grows. With time, digital transformation develops the tools necessary to increase productivity and resource efficiency while improving business collaborations.
Conclusively, from the above discussion, it can be agreed that the motivation for digital transformation for most businesses is financial. Digital transformation saves money on hardware and software while allowing team members to focus on other projects. It also creates a consumer-grade experience, superior performance, and enterprise-grade security, all of which increase revenues and profitability in an organization.
References
Abolhassan, F. (2016). The drivers of digital transformation: Why there’s no way around the cloud. Springer.
Van Veldhoven, Z., & Vanthienen, J. (2021). Digital transformation as an interaction-driven perspective between business, society, and technology. Electronic Markets. https://doi.org/10.1007/s12525-021-00464-5
Yildiz, O. (2021). Digital transformation and internationalization strategies in organizations. IGI Global.
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