Driving growth through digital transformation

Q. What is digital transformation, and why is it important? 

Digital transformation refers to strategic innovation across business operations to drive organizational change. These tech strategies, from cloud migration and serverless computing to machine learning, increase team productivity, improve agility, and efficiently utilize accessible resources. The ultimate goal for most initiatives should be to enhance customer experience, elevate employee satisfaction, and improve financial outcomes.

Advanced technology is usually the key to these objectives. Most leaders focus on three key tech strategies: updating their business model, streamlining operational processes, and improving client experiences/end-user journey. For example:

● Improvements to operational processes include upgrading the enterprise tech stack with the latest software programs, applications, automated workflows, and digital tools—which can optimize daily operations.
● AI-enabled operational systems can accurately detect issues and allow businesses to address them in real time.
● Cloud computing and serverless computing enables enterprises to scale digital interactions with users across multiple touchpoints without overextending their workforce.

Most importantly, digital transformation enables companies to accommodate evolving consumer demands through continuous innovation.

Q. What are the main areas of digital transformation?  

A digital-first approach focuses on three primary areas: people, processes and products.

People: Automated workflows and streamlined business operations can prevent workforce burnout while increasing the efficiency, effectiveness, and quality of the service or product you provide to customers. The primary goal is to improve the quality of life for the people you serve and for your employees.

Process: Strategic innovation can come in the form of an upgraded tech stack. Here, companies can equip their employees with the latest digital tools and resources needed to complete tasks in less time. This tech-driven approach also increases the effectiveness, accuracy, and quality of deliverables. In turn, it reduces the time taken to address human errors.

For instance, data migration to the cloud through domain transformation remains a scalable, secure, safe, and simple step in digital transformation. The change supports business agility by allowing teams to store unlimited data, access it on the go, and address communication gaps.

Products: Innovative integration allows businesses to focus on developing new products and extending service capabilities. For instance, retailers can use Augmented Reality (AR) to create a virtual setting where consumers can use AR technology to see how a product looks in their living spaces. The extended service gives users the information required to make an informed decision, limiting the chances of a refund request. In this way, digital products have become an integral part of more user journeys. The data can then be used to improve product design and service.

In short, digital transformation allows companies to grow by helping them extend workforce skills, optimize processes, and expand into new product offerings.

Q. What drives digital transformation?

Innovation and sustainability are the key drivers of digital transformation.

Strategic innovation refers to unique ideas, concepts, and business practices that lead to positive organizational changes, and one of the first places enterprises look when tackling strategic innovation is digital transformation. AWS provides companies with tools and resources to support the workforce when leaders introduce a new business model.

The adoption of emerging technologies is often a key part of strategic innovation. For example:

● Artificial Intelligence (AI) and machine learning for data analytics to acquire new consumer insights and monitor behavioral change
● Augmented reality and virtual reality can create immersive experiences across user journeys
● Cloud computing can enable better team collaboration and data protection
● Robotics to boost production rate and team efficiency

Another driver of digital transformation is the desire to implement impactful sustainable business practices that benefit the community and the planet. This includes the reduction of waste and carbon emissions, among many other factors. Digitization can limit energy consumption, conserve exhaustible resources, optimize logistics and delivery, and support workforce management needs.

Q: How can digitalization impact your business? 

Digitization refers to a tech-first approach in business operations. Everything from how you file new information and complete daily activities to team collaboration is digitally optimized, thanks to the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI), and machine learning.

Automated workflow can increase operational speed, efficiency, and quality of performance. More specifically, AI and machine learning can make it easier for companies to detect errors and use predictive analysis to make informed decisions. Digitization also increases transparency and improves team efficiency.

Digitization can also have a positive impact on culture. Adopting advanced technology provides employees with the tools and resources to experiment and innovate. For example, the AWS Developer Center gives product teams access to easy-to-follow tutorials and software design applications they can use to build new products. Online training allows your teams to upskill quickly and efficiently at their individual pace.

Moreover, digitization proves cost-effective in the long run. Companies increase cost optimization by going paperless, migrating data to the cloud, and reducing operational costs by downsizing servers and data centers. Plus, access to scalable digital solutions makes it easier for companies to adjust strategies based on evolving needs.

Q: What are the key elements of digital strategy? 

A successful digital strategy relies upon comprehensive and purposeful planning. Leaders and executives should develop a framework that covers the short and long-term organizational goals associated with digital transformation.

The framework can include the following core elements:

● Adequate digital awareness within the team to ensure they can adapt to the transformation without any delays or issues
● An adaptive business model that accommodates the evolving market needs and consumer interests
● An automated workflow to accelerate progress and enhance team productivity
● Comprehensive understanding of current financial planning and cash flow management to distribute costs mindfully
● Customer feedback to ensure the digital strategies are well-received
● Key performance indicators (KPIs) to accurately monitor and measure the progress of digital strategies
● Tools and online resources that support digital transformation

Digital strategies that meet these desired goals have a long-term impact.