We have been noticing a new technological cycle for the last decades – people prefer to call it a digital revolution. Previous models and business processes become ineffective, old communication methods stop operating, customer behavior and channels change, and the new ways of products and services consuming appear.
The need for digital transformation and, therefore, a global digital strategy is of no doubt. However, there is a question that appears immediately: “Where to start and how to make it successful and cost-effective for business?” Every company is unique, and so is its level of readiness for digital transformation in different industries; it depends on their competitiveness and conservatism.
Digital transformation and digital strategy can be effective if:
- a business needs to increase the benefits of IT significantly.
Digital transformation and digital strategy will be of little use if:
- IT supports business very well already now;
- Company does not depend on IT at all;
- There is a low level of business and/or IT management.
Each business must go through three main stages in its way to the digital future.
- The first is automation, during which IT solutions and systems are introduced, covering existing processes. Since chaos cannot be automated, the procedures are changed to suit the existing IT system with a given functionality and process architecture. At the same time, the idea of the central business processes remains almost unchanged.
- The second stage is the digitalization. The existing processes are improved by introducing IT to enhance business efficiency, possibly changing the entire architecture. Besides, data analysis is gaining popularity for making production and management decisions.
- And then comes the third stage – digital transformation, that is, building a business based on platforms. This brings a sharp decrease in transaction costs, contributes to new business models at the intersection of new technologies, consumer behavior models, and partnerships in the ecosystem. Combining the capabilities of new technologies and traditional business types leads to new products with new qualities and consumer characteristics.
The digital strategy makes it possible to achieve a fundamentally new quality of management decisions at all management levels through the widespread use of data and digital models. It brings the total integration of end-to-end production and supply chains – from product development to customer service and minimization of the human factor in all processes. Besides, the efficiency of intra-industry, interdepartmental, and interstate cooperation is growing, and the process of generating and implementing innovations is accelerating.
Our specialists have enough knowledge and experience to provide you with effective solutions for turning your business into digital. So feel free to contact us; we will help you with the digital strategy.