By Bernard BEMPONG
The digital revolution is rapidly changing the face of industries and businesses have increasingly recognized the need to integrate modern technologies into their operations.
Digital transformation aims at making a business more competitive by using a new technology. Digital transformation relies on the use of a new technology to improve key business processes, products and services. It also modifies culture and customer experiences.
Digital Transformation Strategies
Adopting a digital tool is a crucial aspect of digital transformation. The type of a digital tool a business intends to adopt is largely informed by what area of its operations the owners want to transform. In that regard, a business must develop and align its digital transformation strategy with the company’s plans and objectives.
If a company is planning to embark on a digital transformation project, it should consider four main areas relating processes, business model, domain and the organizational culture.
-Process Transformation
Process transformation involves the use digital technologies to automate or improve existing business processes. It starts with a thorough review of existing processes and systems with the goal of identifying areas for improvement.
-Business Model Transformation
Business model transformation aims at answering the question relating to whether or not the current business model can hold onto the status quo in the face of global digitalization.
In driving transformation and strategic change, business model transformation can be adopted as an answer to questions posed by new technologies, competitive disruptors and evolving ecosystems.
-Domain Transformation
The current domain transformation market is one of the most significant opportunities for company growth. When a company is able to effectively transition into another industry, it then fits into what is referred to as domain transformation.
New technologies have the ability to redefine products and services, blur industry boundaries and foster opportunities for non-traditional competitors. This form of wholesale transformation offers incredible opportunities for businesses to create new value.
–Cultural Transformation
A successful digital transformation demands more than just adopting a new technology or re-designing existing processes and practices. It involves a cultural shift through a comprehensive and collaborative effort to re-orient key stakeholders to understand and embrace and the digital transformation strategy and the benefits.
Digital Tools
Digital tools fall into various categories based on the objectives and purpose for which a business intends to adopt it. There are collaborative tools, customer relationship management (CRM) software, marketing automation tools, project management tools, virtual and augmented reality (VR/AR) tools among others.
Collaborative tools enhance teamwork and productivity. Customer Relationship Management (CRM) Software, for instance, helps to manage and improve customer interactions and experiences.
Virtual and Augmented Reality (VR/AR) tools also help to enhance customer experiences, increase engagement and improve training. Business owners can adopt a marketing automation tool to automate marketing processes and personalize customer engagement.
Companies can also implement a project management tool to streamline a project and improve productivity. Digital transformation is a nexus or an interconnection between a business strategy and a digital tool to achieve the strategy. As a result, digital tools and strategies integrate the following:
-Artificial Intelligence (AI)
Artificial Intelligence’s capabilities have been integrated into various industries’ standard business processes. The market size is expected to show a cumulative annual growth rate (CAGR 2024-2030) of 28.46% with a market volume of $826.70 billion by 2030.
Artificial Intelligence (AI) has the potential to add value to business workflows, improve employee capabilities and harness the power of man and machine to improve customer experience. Business can implement AI-powered tools to automate processes, improve customer experiences and enhance decision-making.
–Internet of Things (IoT)
It means the collective network of connected devices and the technology that facilitates communication between a device and the cloud, and the interaction between devices themselves. According to Statista, the Internet of Things (IoT) market is expected to grow at an annual growth rate of 10.49% (CAGR 2024-2029) and achieve a remarkable market volume of $1,560 billion by 2029.
The major factors that will spur the growth of the Internet of Things (IoT) market include access to low-cost, low-power sensor technology, availability of high-speed connectivity, increase in cloud adoption and the use of data processing and analytics. As part of the digital transformation strategy, business owners can leverage on Internet of Things (IoT) devices to collect data, optimize operations and create new business models.
-Cloud Computing
The cloud operates on software applications and programs via the internet and allows access data or information at your convenience and under strict or robust security protection. All that you need is reliable internet connection and a device (a computer, a laptop, a tablet or a smartphone) to connect with.
The cloud platforms make it possible to integrate a variety of third-party applications through its open application programming interfaces. Businesses can migrate to a cloud-based infrastructure to enhance collaboration, scalability and flexibility in their operations.
–Data Analytics
Data analytics is the process of analyzing data sets to find trends and draw conclusions about the information they contain. Data analytics is becoming increasingly important to business executives because it is rapidly improving the way they perform their duties.
The choice of tools for data collection depends on the source and type of data being gathered and processed. They include tools for data mining and visualization to present data in the forms of graphs, charts, and maps so that other people can understand it easily.
Accounting software is one of the most common tool used by businesses to record and analyze the financial data of a company. A modern software like FinovatePro, for instance, helps in automating tasks, reducing errors, and improving efficiency.
Thus, it is very important for business owners to take advantage of these technological advancements and harness the benefits in terms of financial management, audit and assurance, understanding of a customer’s needs and preferences. In effect, managers can utilize data analytics tools to gain insights, make data-driven decisions to drive business growth.
Related Issues
As part of a company’s strategy for digital transformation and adopting digital tools, business owners must also act on the following:
–Foster a Culture of Innovation
It is imperative to encourage experimentation, learning and innovation within the company or business.
-Invest in Employee Training and Development
This will help to upskill and re-skill employees to ensure they can effectively utilize digital tools to improve productivity and achieve efficiency.
–Monitor Progress and Adjust
Business owners must monitor and evaluate the digital transformation journey and make adjustments as needed to achieve those objectives.
Ensuring Cybersecurity and Data Protection
It is important to implement robust cybersecurity measures to protect against threats and ensure business continuity. To achieve this objective, business owners must have in place a cybersecurity policy. The policy should cover various aspects such as employee training, role-based access controls, incident response plans and cybersecurity insurance.
Employees can either be part of the defenses against the cyber-crimes or accomplices in the eco-system. Therefore, a strategy in respect of employee-training must ordinarily entail cybersecurity awareness programs which will empower them to follow proper procedures for handling sensitive client data and recognize risks of phishing emails or creating strong passwords.
To ensure restriction to sensitive data or information, organizations need to implement role-based access control systems which must give permissions to employees based on their employee job function. These controls must equally be reviewed regularly to prevent breaches when employees change roles and neither should they share those access with their colleagues. Multi-factor authentication can also be enforced through biometric fingerprint scans or a password/code tokens to employees’ dedicated phones to verify their activities.
Conclusion
Advanced technologies are indeed transforming business processes and empowering organizations to make quick and informed data-driven decisions. A deliberate effort aims at prioritizing investment in digital transformation will not only help businesses to reap the benefits of making their operations more agile but also reposition them from cost center to a strategic business partner. It is therefore important for business owners to embrace modern trends to make them more competitive while developing strategies to overcome the challenges associated with digital transformation.
BERNARD BEMPONG
Bernard is a Chartered Accountant with over 14 years of professional and industry experience in Financial Services Sector and Management Consultancy. He is the Managing Partner of J.S Morlu (Ghana) an international consulting firm providing Accounting, Tax, Auditing, IT Solutions and Business Advisory Services to both private businesses and government.
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