What is digital transformation?

What is digital transformation?

Learn how digital transformation can impact your business

When we talk about digital transformation, a lot of people associate it with new futuristic technologies, such as flying cars and robots.

But in fact, this term refers to something that is already in motion and that can be seen at all times in virtually all companies and sectors of society.

If you’d like to stand out in the market, you need to be aware of this process and allow it to really transform the way everything happens in the workplace.

Lots of positive actions may arise from that transformation, but first, you have to understand the concept well and know how to use it comprehensively, within your company.

In this text, we’ll define this process and show you how digital transformation is already impacting your life and your business.

Read on to learn everything about it!

Understanding digital transformation

Digital transformation is a process of structural change in companies that is related to the use of technology and digital market tools to alter internal and external procedures and consequently, improve the customer experience.

It isn’t restricted to companies that sell digital products or focus on technology or the internet, because it actually impacts all kinds of businesses.
From more traditional institutions, in the field of health and education, to software developers and app creators, for example, all of them need to be able to use the technological resources so they can develop and offer innovation to the market.

You’re wrong if you think you can leave those changes for later.

Customers have already understood the advantages of buying from companies that have incorporated digital technologies into their processes and are actually demanding it from brands they relate to.

But don’t think it’s just about using technology and being on social media.

It’s essential to rethink the entire organizational structure, incorporate the dynamism of the digital environment and to come up with truly thorough, innovative and relevant results.

The impact of Digital transformation

It’s pretty clear that digital transformation has come to totally change the way things are done in our society, right?

Of course, anyone who is a business owner can’t be left behind and needs to be prepared to adapt and get ahead of the competition.

To understand what is happening, see the most important impacts of digital transformation in the business world.

1. A new way to sell products and services

Today, with so many resources at hand, the consumer is the one looking for solutions to their own problems.

Companies that used to bombard users with direct advertisements all the time have lost market share and have begun to rethink and redesign their marketing strategies.

Obviously, there are still ads, but they need to be less aggressive and more educational and their design needs to be based on buyer experience.

After all, the customer has full access to information and no longer buys a product or service just because he’s seen a good advertisement on television. He needs to understand all the benefits he’s going to get and make sure that that’s really the solution he needs.

Moreover, the digital market is growing steadily and it’s becoming more competitive.

Digital transformation has expanded opportunities for those who want to work as online freelancers, sell products online, become Affiliates, work remotely, and more.

The possibilities of working within the virtual environment are plenty, and yet new professions always emerge to meet the demands for innovation.
As a result, more traditional careers have begun sharing space with jobs that offer more freedom and mobility for professionals.

2. Improving buyer experience

As we mentioned above, the companies that stand out during this digital transformation period are those that care about the customer experience.

More than selling a good product or service, it is fundamental to show how that product will be useful in the person’s life and especially how it can improve their lives, whether personally or professionally.

So anyone who is a business owner needs to demonstrate that they care about their audience and understand their pains. You also have to make sure that you are able to offer something that will add value to someone looking for the solutions your business offers.

Implementing technology in your procedures is one way to do this, because it allows the entrepreneur to get as much information about the people he wants to reach as possible, therefore, you’ll get to know his behavior and you’ll identify his needs and objections.

With all this data in hand, it is easier to create targeted actions directed at your buyer persona, what would ensure the assertiveness and relevance of your strategies.

3. Process optimization

People have become increasingly interested in ways to optimize their processes, both on the individual and on the professional level.

The reason for that could be to be better organized, communicate more efficiently, track expenses, store files in a safer way or spend less time on a task.

The truth is that when we implement something different that allows us to do some activities in a simpler way, we are incorporating digital transformation into our routine.

This can happen through a task management worksheet, an app that monitors health, a scanning app or any other changes that will create a more favorable work environment and effective procedures for the company or person.

In the business, this optimization is not only linked to the final product that is delivered to consumers, but also internally it’ll make the work of employees easier, improving customer service and promoting the de-bureaucratization of t unnecessary, outdated procedures.

4. Strategic thinking

Because digital transformation interferes with virtually everything we do, the roles of professionals within companies have also been affected.
With some exceptions, companies have been hiring employees that go beyond the operational skills.

These positions require strategic and relevant thinking that can positively influence overall results.

The job market wants people who can contribute with something new and who are able to add value through ideas, experiences, and knowledge.

After all, purely technical positions are being replaced by technological tools and resources and the employee’s priorities have been shifted to working aligned with the organizational objectives and culture.

In this scenario, the proactivity, the creativity and the willingness to constantly learn and follow up on innovations and trends are some of the most valued characteristics.

5.  Rearranging the corporate culture

Companies have already understood the importance of making their employees feel good in the corporate environment and enjoy their work.

This is critical to increasing their well-being and quality of life at work, but it is also an effective strategy to improve business results.

After all, motivated and satisfied employees work harder, have more resilience, and feel more prepared to handle the challenges of their job.

This cultural business rearrangement usually happens in small details, such as:

  • Flexible schedules, so employees have more freedom and control over their schedule;
  • Cozy work environment, with separated spaces to rest, for leisure and for interaction among colleagues;
  • More horizontal leadership, which enables the team to communicate in a less authoritarian way;
  • Organization of events and gatherings to engage people and improve team spirit.

6. Social awareness

One of the most important characteristics of digital transformation is the focus on customers. In order to make them have better experiences, companies are increasingly concerned about their impact on society as a whole.

They want to become references in their communities and contribute to something positive that can solve common and important problems of part of the population they reach.

This is the case, for example, of Nubank, which has transformed the lives of thousands of people by offering a no annual fee credit card, what reduced the user’s chances of getting into debt and smearing their names.

Another example is the Hotmart platform, which enables people to make a living out of their passions, by working with what they like.

We can also mention companies that use the technology to reduce their environmental

impacts, becoming more sustainable and offering eco-friendly and healthy products.

It is no wonder that we are witnessing a boom in the sales of brands that are concerned about social responsibility.

People have realized that companies are increasingly gaining access to new, better forms of production and are demanding that this is used to benefit society as a whole.

All these cases clearly show that in times of digital transformation, those who care about delivering differentiated solutions that contribute to people’s satisfaction and offer truly attractive advantages, will undoubtedly stand out.

7. Data analysis

Everything that is done in businesses today depends on a data analysis.

Most people are already aware of how important it is to properly store, analyze and interpret the information they collect so they can do assertive actions with the potential to generate profit and growth for their businesses.

Knowing how to manage the big data is a competitive advantage within the market. So, if you have a business, you need to tailor and adapt your processes so they can be done more effectively.

Someone who doesn’t have experience with this matter may have difficulties in handling such a high volume of data, but that’s nothing that a lot of study and dedication won’t solve.

To learn all about data science, check out our text that teaches you how to use data analysis to make your business grow

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