Why digital transformation is an ongoing process for enterprises

It’s already well known that COVID-19 accelerated digital transformation. McKinsey estimates that it shot forward by about 7 years of progress within just a few months, and CNBC reports that 85 percent of companies sped up their digital transformation plans, but the real question is what happens now?

You could say that there are 3 main pillars to digital transformation, and they don’t necessarily take place one after another. These pillars include:

• Reorganizing IT assets, often moving them to the cloud and/or ensuring that they all communicate smoothly with one another;
• Rethinking business operations to make them more digital, which includes spearheading a new digital culture and reassessing workflows
• Remodeling customer experiences so that they take full advantage of the enterprise’s new digital capabilities

Enterprises that have made progress with one of these pillars might not have reached the same point with the other two.

Digital transformation is a journey, not a destination

Too many enterprises are patting themselves on the back for having implemented a digital transformation in the middle of a pandemic, and feel that now, they can turn their attention to other things. However, this would be a serious mistake.

A lot of people are misled by the word "transformation" into thinking that there must be an endpoint when the transformation is complete, somewhat like transformer toys which changed from cars to robots. But the truth is that digital transformation is a long-term journey with no official finish line. New technology is constantly emerging to give you -- or your rivals -- a new competitive edge.

Even now, digital transformation leaders are moving on to the next use case, like edge computing and more advanced machine learning (ML) and deep learning (DL) applications, and are exploring the possibilities offered by virtual reality (VR) and augmented reality (AR).

If you think you’ve finished your digital transformation, you’ve probably misunderstood both your achievements, and the true potential of digital transformation.

Evolving tech supports better customer experience

Many enterprises began digital transformation in response to customer demand, especially during COVID-19 when companies had to quickly enable remote, contact-free payments, information sharing, and other interactions.

But customer expectations never stay static. For example, customers were grateful for digital, self-serve portals at the beginning of the pandemic, but now they are rapidly taking them for granted. Banks that don’t offer online banking, restaurants without a delivery app, and healthcare centers without telemedicine are looked at with frustration and irritation.

Today’s consumers are moving on, and digital innovations are keeping up to support their new demands. A year of ecommerce, which welcomes each visitor by name and presents tailored purchase suggestions, has prepared consumers to expect the same relationship with other verticals. Personalized experiences need tech that enables improved data gathering, connected data sources, and ML-powered predictions, as well as an upgraded, integrated supply chain that can respond swiftly to individualized orders. Ongoing digital innovation is the path to consistently good customer experience (CX).

Digital innovation enables happier employees

Once an enterprise has completed one stage of digital transformation, they’ll spot new opportunities, new ways to gain value from their digital competencies, and new ways of working which improve employee experience across the board.

For example, COVID-19 forced many companies to quickly adopt digital project collaboration platforms, cloud tools, and remote communication channels so that their employees could keep up with their work from home. With the success of remote working, teams are becoming more distributed and disparate, requiring more tech to help keep everyone connected and build a sense of being part of a larger whole.

As teams discover that they can replace a meeting with an email, they are finding more and better asynchronous communication tools that make life better for employees and improve the remote work experience. Evolving tech like VR glasses allow HR personnel to deliver personalized remote training that’s immersive and engaging; managers can use AI simulations to improve their soft skills; and advanced talent management uses ML to spot employees who are looking for new challenges and suggest the right projects and roles.

Digital transformation has a ripple effect on business strategy

COVID-19 was the spark that lit a fire of digital transformation for enterprises across a number of verticals, but once they implemented their initial, and most urgent, projects, they discovered that they had stepped onto a virtuous cycle. One technological innovation led to the next, driving improved business decisions across the board.

For example, a manufacturing company connected IIoT sensors and removed data silos so that remote employees could follow plant conditions in real time, and discovered that it could combine its integrated data with ML algorithms to optimize production and make better business decisions.

Others put existing connected devices to use to create a digital twin, in order to deploy a predictive maintenance solution for earlier warnings about part failures. Then they realized that the same system delivers improved visibility into the whole plant, allowing employees to see into equipment without entering hazardous situations. They further noticed that digital twins together with AR can be used to carry out remote repairs and configurations, as well as diagnostics, improving productivity and profitability.

Digital transformation can be the gift that keeps on giving

For companies that are willing to keep on top of digital trends and learn about new tech innovations, digital transformation never ends, and that’s a good thing. By constantly following the evolving potential of digital transformation use cases, enterprises can raise the standard for the CX they deliver, the employee experience they create, and the business strategy decisions they produce.

Photo Credit: Sashkin/Shutterstock

Peter Davidson works as a senior business associate helping brands and start ups to make efficient business decisions and plan proper business strategies. He is a big gadget freak who loves to share his views on latest technologies and applications.