Oct 08 2022

What Digital Transformation Means

Anna Melnikova


Modern global trends in the field of doing business are so changeable that only those enterprises that keep up with the times, modernize production and carefully study the needs of customers remain afloat. In this light, special attention should be paid to such an important process as digital transformation. This concept implies the introduction of digital technologies in all areas of business. This approach allows companies to automate many processes, make useful operational changes, and adapt to ever-changing customer requirements. Among the most illustrative are the following examples of digital transformation:

  • - Creation of digital solutions in the form of mobile applications and other e-commerce options; 
  • - Local computer infrastructure is being replaced by cloud computing;
  • - Reduce operating costs through the introduction of smart sensors. 

The Center for Business IT dt-x.io reports that the systematic implementation of digital transformation allows you to accelerate the entry of goods to the market, minimizes sudden disruptions in the supply chain, allows the company to respond as quickly as possible to various negative factors. 

Benefits of Digital Transformation

The last two decades have been marked by the rapid introduction of digital transformation in various areas of business, but if we summarize all the available information, the main advantages of this process include the following: 

  • - Significant performance improvements. The use of cloud services and other new technologies allows not only to increase the efficiency of various processes, but also to save time. In turn, machine analysis of data contributes to the fastest achievement of goals; 
  • - A new level of interaction with customers. Services should be available through different channels. First of all, those communication systems that can be used on mobile devices are in demand. Many companies focus on interacting with customers in real time using artificial intelligence. 
  • - Reduced operational costs. Investments in digital transformation can significantly reduce the cost of equipment maintenance, delivery, logistics. In addition, costs in the energy sector and for attracting human resources are reduced. 
  • - Flexibility and resistance to various crises and unfavorable periods. Digital transformation includes a set of different tools that allow you to predict future crises, different market changes and determine the prospects for doing business in certain conditions. 

The basic advantages of digital transformation can be traced on the example of online stores that have firmly occupied their niche in the modern world and every year their popularity is growing rapidly. Such sellers have the opportunity to significantly save on the rental of retail space and salaries to employees, since their staff is minimized. At the same time, it is possible to cover the maximum number of Internet audience, analyze the requests and needs of buyers. 

Key Challenges of Digital Transformation

Despite the fact that the digitalization of the economy is an inevitable process, this direction has certain problems. Many business representatives are faced with a shortage of qualified personnel, and it is on them that the quality of work at all levels depends. 

Another major concern is cybersecurity. Even minor security bugs can compromise an entire business, including manufacturing processes, customer bases, and other components. 

Digital transformation is a new reality to which not all people can adapt. Automation of processes leads to the fact that many able-bodied citizens are excluded from work processes. In most cases, we are talking about people of working specialties who do not want or can not repurpose to another kind of activity. Why is this dangerous? First of all, a large increase in unemployment and, as a result, an increased burden on the budgets of different levels. 

And yet, with the right, balanced and thoughtful approach, the advantages and positive aspects of digital transformation processes are much greater than the disadvantages. 

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