In today’s market, a frequent question is: Why invest in digital? The main reason is to secure long-term competitiveness. Research indicates that organizations that successfully navigate digital transformation not only excel in their markets but also build barriers that make it challenging for competitors to catch up.
Achieving this level of competitiveness means recognizing that digital transformation is more than just making tactical adjustments or quick fixes. It requires a comprehensive overhaul of the company's entire operation and business model, aligning with the evolving demands of the value chain. In certain sectors, digitalization is not just an option but a necessity driven by leadership and the benefits it provides.
A practical approach is to begin with a small number of targeted improvements. Clearly define the objectives and goals for each initiative, and then, after implementation, measure the outcomes against these goals. Regardless of your industry, investing in a strong technological foundation that supports both functional and data needs is essential for meaningful and responsible progress.
When structuring your digital transformation, consider three key areas:
Customer Experience: This encompasses all interactions involved in selling and delivering products or services. Evaluating customer experience is crucial, with a focus on sophisticated and user-friendly methods of engagement with both the company and its employees.Operational Excellence: A digital process should incorporate the right level of automation to ensure long-term economic efficiency.Business Model: Traditionally, organizations aimed for vertical integration to achieve economies of scale and process control. However, technological advances now enable more flexible interactions between organizations, allowing them to concentrate on core competencies and deliver greater value.After reevaluating your business model, plan your digital transformation by addressing these areas with a focus specific to your organization. Identify the most suitable innovations, explore emerging technologies, develop new business models, and involve both employees and customers. Sustainable success comes from the combined efforts of people, not just technology.
Culture plays a crucial role in any transformation. Building a culture of continuous improvement and collaboration, and celebrating collective achievements, is key to a successful and enduring transformation. For leaders, prioritizing culture and alignment is essential for achieving success.
Simplifying the Digital Transformation Approach Originally, "digital" referred to the representation of data in binary form, but today it encompasses a much broader concept. Now, "digital" describes how information and technology are used to create value. In this framework, technology acts as a facilitator for delivering that value. When tailored technology is used across various functions and stakeholders involved in value delivery, it enhances experiences and provides a clear competitive edge for organizations.
Technologies like cloud computing, the Internet of Things (IoT), smart devices, smartphones, edge computing, and artificial intelligence (AI) have introduced a level of sophistication in tasks that was once only imagined. In the context of the value delivery lifecycle, an experience is considered digital when every step—from purchase to delivery—is computerized and streamlined. This includes everyone involved: the buyer, manufacturer, retailer, operational team, suppliers, and shareholders. If each participant can access the necessary information in an intuitive and user-friendly way, and their tasks are maximally simplified through technology, the business can be classified as digital.
However, digitalization must align with the specific needs of the business. It's important to map out the entire value delivery lifecycle and break down the business process into its core functions. This involves identifying subprocesses, tasks, actors, and their objectives. For each step, consider how it can be automated and how to improve interactions with the next stakeholder. Lastly, validating the process to ensure it delivers more value with reduced costs and execution time is crucial.
Effectively implementing and adapting these technologies is what truly defines digitalizing a business. Investing in digital transformation is critical for maintaining long-term competitiveness.
Technological Trends for Businesses Technology has long been a vital partner for companies, helping them stay competitive in an ever-evolving market. As society becomes increasingly digital, technological innovations are rapidly advancing, offering more agile and sophisticated solutions. For business owners aiming to attract and retain talent, expand operations, and prepare for the future, keeping up with these trends is crucial. The year 2020, marked by the COVID-19 pandemic, highlighted several prominent technological trends that are expected to accelerate even further.
One key trend is mobile connectivity. Many companies are consolidating various independent systems into a unified platform. Cloud computing is revolutionizing traditional operations by connecting employees and enabling a more mobile and collaborative work environment. Beyond simplifying software updates, cloud technology offers substantial benefits for companies with smaller teams, providing a consistent experience for remote workers and helping attract and retain talent from any location.
Another technology on the rise is Blockchain. Blockchain facilitates more secure and cost-effective transactions by enabling identity verification, contract execution, business process automation, and transaction recording. For instance, smart contracts use Blockchain to automate payments. When a service is rendered, the smart contract automatically initiates payment, eliminating the need for manual invoicing. Blockchain's potential impact extends to supply chains, legal disputes, capital raising, title transfers, and even creating a universal identity.
Today, transforming your business is no longer optional but essential for survival. Innovation, once seen as an extra, has become crucial for maintaining competitiveness. The current environment requires companies to discard outdated management practices and adapt swiftly. Changes that were previously slow are now happening at a rapid pace, from evaluation to implementation.
Innovation is not just about gaining a competitive advantage; it has become a matter of survival. The COVID-19 pandemic served as a pivotal moment, pushing businesses out of their comfort zones and into new challenges. To avoid decline, entrepreneurs are embracing various forms of innovation, such as enhancing products and services, developing new pricing strategies, and launching new products. Managers who can navigate uncertainties and act quickly are more likely to succeed in this new landscape.
To effectively manage these challenges and seize opportunities, connecting with market experts can be a key strategy for success.
Contact TATICCA – ALLINIAL GLOBAL , which offers integrated services in auditing www.taticca.com.br or email taticca@taticca.com.br. Our company has professionals with extensive market experience and certified methodologies for performing these activities.
