“Every digital transformation is going to begin and end with the customer, and I can see that in the minds of every CEO I talk to.” -MARC BENIOFF, CHAIRMAN AND CO-CEO, SALESFORCE
There is a lot of confusion around the term "digital transformation." Many use it interchangeably with words like "digitization" and "digitalization." However, there is a difference.
Before we get into the nitty-gritty of transforming your business, could you think about how it began? All companies started with paper and pencil until they shifted over to digital technologies for them to be able to grow more rapidly than ever before!
Digitization: Digitization is an essential process in the development and progress of technology. It converts physical objects into digital formats, such as turning paper documents into PDFs which are then stored on computers for easy access when you need them! An example: A physical filing cabinet that contains records and files now converted into a digital format.
Digitalization: Digitalization is about developing processes and changing workflows to improve manual systems. For example, digitized customer data from different sources automatically generates insights that were never possible with a physical paper-based system.
An example could be using digitized customer data from different sources, like social media profiles or website logs, automatically generating insights about their behaviour without any human interaction.
Digital transformation: Businesses need to ask "big questions" if they want their business models and processes changed for the better. The digital transformation is bringing about a new era where companies can revisit everything from internal systems to customer interactions both online or offline - even how we do things at home.
Why do companies digitally transform?
The goal of digital transformation is to bring the latest technology into your business operations to offer customers an improved experience and create more value. This requires integrating new technologies to change how workflows are done, what information gets accessed or made within a company's processes - anything related to efficiency! The changes brought about through this process allow businesses to adapt and thrive no matter what industry landscape they find themselves on at any given time.
What are some key drivers of digital transformation?
- Enhance customer experience
- Enhance customer insight
- Streamline operations and process management
- Improve employee productivity and performance
- Decrease skills gap
- Enhance product or service innovation
- Address compliance and security requirements
Why is digital transformation important?
Digital transformation can take different forms, but it generally falls into one or more of several categories:
- digitizing the customer experience,
- opening up new market opportunities, enabling innovation, and
- increasing operational efficiency.
Some organizations achieve digital transformation by digitizing their existing processes and tools. Others go through a radical change, abandoning traditional business models instead of entirely new ones.
Great examples of digital transformations:
- Netflix was founded in 1997 as a mail-based digital video disk rental company. They reinvented themselves online, becoming one of the first companies to offer streaming videos on demand with personalized offerings for each customer's preferences.
- Dominio Pizza - It is hard to believe that there was a time when people could not order pizza on their cell phones. The 60-year-old company successfully transformed itself for the digital age and now has innovative tech-driven services such as its "Pizza Tracker," which helps drivers find lost pizzas.
Despite the growth of technology, digital transformation is not just about machinery. It also requires an open-minded culture and mindset from your team to successfully navigate this new world where everything must be learned again through trial-and-error, as well as being able to experiment with different methods on how best to do things which often leads them down paths never before seen or done before
Don't hesitate to reach out if you're starting your digital transformation journey or need help revisiting your existing digital transformation strategy related to your Salesforce products. Contact us here.