DIGITAL BUSINESS TRANSFORMATION: PROBLEMS AND SOLUTIONS
Ключові слова:digital business, transformation, digital transformation
Digital transformation is the introduction of modern technologies into the enterprise's business processes. This approach involves not only the installation of modern equipment or software, but also fundamental changes in management approaches, corporate culture, and external communications. As a result, the productivity of each employee and the level of customer satisfaction increase, and the company gains the reputation of a progressive and modern organization.
This is one of the many definitions of the modern term "digital transformation". If we summarize everything that exists today, the digital transformation of business is the transition of the company's processes and technologies to more modern and effective solutions. What is meant by the term "modern and efficient"? Let's try to decide on this .
Today, the presence of Internet access, Wi-Fi and computers in enterprises is no longer modern leading technologies, but the norm for doing business. If the company goes to digital transformation, it needs to know that this is a continuous process, the basis of which is the latest technologies and innovations, with the help of which the company forms new business models that must be oriented to customer needs.
The main advantages of digital transformation for business can be:
- Increasing efficiency and reducing time for repetitive tasks by automating organizational processes;
- Improving communication with clients, partners and employees;
- New opportunities for customer service;
- Increasing the level of competitiveness on the business market by optimizing the organization's processes .
The main problem of digital transformation, its main difficulty concerns the employees and customers of the enterprise. This is, first of all, the need for a comprehensive study of the client, his needs and expectations. In the digital era, the client uses products and technologies that are convenient and profitable for him. Secondly, the problem is the adaptation of the culture within the enterprise to new standards. Management must explain why the transformation is necessary, implement new communication methods, and train staff in new technologies.
The second point usually causes the most difficulties. After all, not all employees understand the need for new technologies, not all can quickly master new knowledge and skills. It is important to understand that the changes also affect managers and leaders of the enterprise. As long as management thinks in the old way, there will be no results from digital transformation.
There are situations when employees do not understand or do not understand changes within the enterprise and keep silent about it. As a result, this slows down the process of digital transformation. Therefore, the importance of communication and feedback should not be underestimated. The better you know your employees, the easier it is to implement new technologies.
Of course, you can always stay true to classic technologies and solutions, but this can lead to the fact that there will be other companies that will surpass you in the business market.
The pandemic and the lockdown came so suddenly to companies that many were simply not ready for it. Organizations are faced with an urgent need to implement new technologies for remote work and review their plans for the future. Now, digital transformation has become the necessary link between the organization and its successful future. After all, the main problems of organizations during the pandemic are solved with the help of digital transformation:
- remote work has become the impetus for moving IT infrastructure to the cloud. This solves the problem of working efficiently from home, because the staff has secure access to corporate data, tools and applications.
- all meetings, conferences and other business communications with partners and clients have gone online. Many platforms have appeared where companies can arrange video conferences, chats for communication with employees, partners and customers.
- online education existed before, but now it has become a full-fledged alternative to regular face-to-face education.
- automation of IT processes and business processes simplified the work of personnel. There is no need to be involved in routine processes .
Digital transformation consists of important points that should not be missed. Including:
- Preparation. Formulate the main reasons for the digital transformation of your company. Try to develop a common understanding and plan for transformation. Here it is important to analyze how ready your business processes are for new technologies. If you want to move your IT infrastructure to the cloud, it is important to organize an IT infrastructure cloud readiness audit before the migration.
- Planning. Digital transformation will have an effect if it affects all business processes. It is important to plan which change processes will be affected first. The plan should clearly state the participants of the CT, processes, goals and deadlines. If you understand that you do not have enough knowledge or skills for transformation, you can always turn to specialists.
- Involvement of personnel in the transformation. As already mentioned, digital transformation affects not only the company's business processes. Therefore, it is important to involve employees in changes, evaluate their skills and knowledge and, if necessary, send them to training courses.
- Digitization of data and documents. Digital transformation means accessibility and efficiency. What is the point of new technologies, if some of the documents are on your shelves in the office? For this, there is an electronic document flow and data storage in the cloud.
- Verification and implementation of the new operating model. At this stage, new systems are put into operation, IT architecture and processes are modernized and optimized.
- Formation or renewal of the company's business model. Your existing and potential customers and partners should know about the processes of digital transformation within the company. Here, it will be necessary to adapt the approach to the positioning and logistics of your company.
Therefore, the choice is always left to the management of the enterprise. You can remain faithful to the usual solutions and customers. This will affect competitiveness and your image in the business market. Or, on the contrary, you can gradually implement digital transformation and open the door to new opportunities. Digitization creates new opportunities for cooperation with other companies. For example, thanks to modern technologies, geography is no longer an obstacle in work: you can conduct business and look for partners in any part of the globe. And the open API makes collaboration easier and more convenient. For example, in the digitalization of finance, in particular, the banking sector, software interfaces have been used for several years.
It is also necessary to remember that without digitalization it is impossible to become the best or work with the best. Leading companies are already implementing digital transformation strategies and want to collaborate with those who match their level of development and share their values.
Shulzhyk, Yu. O., Hrytsko, R. Yu., Pekanets, S. R. (2022). Upravlinnia zminamy v umovakh tsyfrovizatsii. Publichne uriaduvannia, (2 (30), 127-134. URL: https://doi.org/10.32689/2617-2224-2022-2(30)-16 (date of application: 01.04.2023)
Didier Bonnet. 3 Stages of a Successful Digital Transformation.URL: https://hbr.org/ (date of application: 05.04.2023)
Clodagh O’Brien. What is Digital Transformation? A Guide for Businesses. URL: https://digitalmarketinginstitute.com/blog/digital-transformation-business-guide (date of application: 02.04.2023)