Digital Transformation for Businesses: Why is it crucial?

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Digital Transformation for Businesses: Why is it crucial?

Digital transformation is applicable across all departments, verticals, and industries. It is essential to keep a business competitive, proactive, and efficient. Here, we’ll discuss the digital transformation process and the need to adopt it in enterprises. 

Digital transformation has become an essential driver for success in today’s world. It is the process of digitalizing the business systems, data, workflow, and internal operations to make data-driven decisions, increase ROI, and enhance customer experience. According to Statista, global spending on digital transformation will touch $3.4 trillion by 2026. 

Another report shows that the digital transformation market will grow at a CAGR (compound annual growth rate) of 23% between 2019 and 2025. Gartner says 91% of businesses are already engaged in some form of digitization or digital initiative. However, digital transformation for businesses is not a short-term project or a one-time implementation process. It is a continuous process where enterprises have to constantly improve and upgrade their technology to stay relevant in the competitive markets. 

But why is digital transformation crucial for a business? How can you start digital transformation in your business? Let’s find out in this blog. We’ll also read more about the implementation process, framework, benefits, and examples of digital transformation. 

What are the 4 Main Areas of Digital Transformation?  

The digital transformation framework consists of four main components or target areas. Digital transformation is not limited to buying new software or technology. It is a comprehensive process of revamping the enterprise across all verticals, departments, and levels. You need to hire experts to make it a success. 


Operational transformation deals with optimizing and automating your systems and IT infrastructure to streamline data flow. Cloud migrations, data pipelines, third-party integrations, AI and ML technologies, data science, big data analytics, etc., are used to bring operational transformation and efficiency. There will be better connectivity between various applications to provide real-time data and insights. 

Business Model

Transforming the business model requires a change of strategy and the adoption of data-driven models to make faster and more effective decisions. It deals with changes in the business ecosystem, digital products, services, and multiple integrations. Your digital transformation strategy will play a vital role in streamlining business model transformation. Aim for the long term to make your organization future-proof. 

Domain Transformation

Domain transformation deals with core operational areas, such as marketing, sales, manufacturing, product development, diversification, market expansion, etc. It helps combine innovation, agility, scalability, and flexibility using emerging technologies. Digital transformation service providers will build a robust IT infrastructure to promote greater performance and productivity in all domains. 

Cultural and Organizational

study report shows that an organization where the Chief Digital Officer is actively involved in the process has six times greater chances of succeeding in digital transformation. Similarly, digital transformation will be stress-free when the changes are implemented at the cultural level. Involve employees in the process and maintain transparent two-way communication. Address their issues, provide training programs, and implement new technologies in stages. Over time, this will bring a change at the organizational level and deliver the results. 

How to Use Digital Transformation in Business?

A recurring question many businesses ask is – how long does it take to complete a digital transformation? There is no definite answer. Digital transformation is a long-term investment. It cannot be completed in a couple of weeks or even months. On average, the digital transformation of an established enterprise can take about five years. After this, the enterprise will have to keep updating its systems and training programs to continue using the latest technology in the market. 

Define Business Role

Digital transformation makes fundamental changes to your business operations and processes. It changes how you deliver value to customers and stakeholders. So, firstly, you should define your business role and what it means to digitalize your systems. Understand what digital transformation can do and how it will benefit your establishment.  

Hire Experts

Digital transformation needs expert support to minimize the risk of mistakes and incorrect decisions. Partner with a digital transformation consulting firm to provide the strategy and implement the changes in your organization. Choose a service provider with a vast portfolio and experience in your industry to get better and more effective results. 


Standardizing operations is an essential part of digital transformation. It brings greater consistency and facilitates collaborations. It also improves the overall quality and aligns different business aspects to work cohesively and achieve the end goals. Another advantage of standardization is continuous growth and faster adaptation in competitive markets. 

Identify Elements to Let Go

Digital transformation also requires letting go of outdated processes, technologies, and legacy systems. Make a list of things that need to be changed in the organization. Identify the ones that should be eliminated to save cost, time, and resources without compromising quality. Whether it is metric or a system, removing complexities will make change smoother. 

Plan the Culture Shift

Digital transformation is not possible without a cultural shift in your business. Your work culture needs to change from rigidity to continuous growth and learning. This can be hard on the employees, so it’s important to communicate and implement the changes one step at a time. Over time, your employees will be ready to handle constant changes, which are an inherent part of digital transformation. 

Align Goals and Outcomes

Aligning the goals with outcomes will provide a clear picture of what you want and how to achieve it. Simultaneously, you should align people with processes to eliminate roadblocks and overcome challenges. So, which item describes a goal of an organization seeking digital? There is no single answer to this. The goal of each business is different, which is why aligning everything is crucial to eliminate risk and increase your chances of success. 

Focus on Data Accuracy

Data is a vital element of digital transformation and a data-driven model for decision-making. The insights will be relevant and reliable when the data used for analysis is high quality and accurate. Develop data governance strategies to promote data integrity. This will enhance your digital transformation processes. 

Performance Improvement Tools and Processes

Choose tools, technologies, and processes that promote greater performance and productivity. The digital transformation experts will guide you at every stage and help pick the right tools to align with your requirements and streamline workflow. Factors such as scalability, connectivity, and third-party integrations should be considered. 

Involve Employees

Your employees are a core part of the business. Involve them in various stages of digital transformation and keep them updated about the latest developments. Create awareness, offer training programs, and take their feedback. After all, employees will use the new systems and applications you adopt. Involving them will accelerate the process and reduce the risk of errors. It also helps promote adaptability, which is a must for digital transformation. 

Agility and Flexibility

Digital transformation trends are constantly evolving and changing. New tools, technologies, and approaches are being developed regularly to increase business performance and ROI. In such instances, being flexible and adaptable will make your organization proactive and respond quickly to challenges and opportunities. 

Measure and Monitor KPIs

Finally, you need to establish and define KPIs to measure your success in digitally transforming your business. Since digital transformation is a continuous and ongoing process, monitoring and taking corrective steps will also have to be in the loop. 

How to Measure the Success of Digital Transformation?

The digital transformation expert will set up KPIs to measure the success of the process. However, it’s vital to keep the KPIs straightforward and limited. KPI hierarchy may sound appealing but can be complex to track. The best way to measure the success of the digital transformation process is as follows: 

  • Clearly define metrics and their relationship to the business and outcome you want.
  • Use work as a leading indicator.
  • Consider a definite target audience.
  • Create KPIs that can be understood by non-IT employees.
  • Use color markers (red, yellow, green) and drive change when the colors change.

What are Examples of Digital Transformation in Business?

Digital transformation can be used in all industries and sectors. From retail to healthcare to entertainment and telecom, there are various digital transformation examples in the real world. A few of them are as follows: 

  1. Toyota streamlines manufacturing through digital transformation.
  2. Starbucks uses AI to improve customer experience.
  3. Coursera offers personalized suggestions and courses for students.
  4. Airbnb creates a seamless connectivity between homeowners and travelers.

What are Some Benefits of Digital Transformation for Businesses?

Digital transformation offers several benefits for businesses that can help them gain a competitive edge by improving efficiency, productivity, and customer experience. Some of the benefits are listed below:

Cost Reduction

Even though digital transformation requires extensive investment, it generates higher ROI and helps reduce costs in the long run. Process optimization and automation save resources, shorten the production cycle, and eliminate delays, thus cutting down costs due to inefficiency. 


Sustainability has become a priority in recent times. Reducing carbon footprint and creating a transparent and sustainable supply chain can be possible with digital transformation in businesses. This makes your establishment deliver consistent results in the long term.  

Better Quality

Quality is a definite differentiator in the market and helps your business stand out from the rest. Digital transformation supports closed-loop quality by reducing errors, faulty products, etc. Using advanced software helps businesses streamline production and services. 


Regulatory compliance has been mandatory for businesses from around the globe, be it emissions, quality, or data security. Digital transformation brings greater visibility and transparency, making it easier to comply with industry and governmental regulations. 

Greater Customer Experience

One of the biggest digital transformation benefits is customer satisfaction. With accelerated production and faster growth, you can keep your customers happy and connected to the business. Inspire brand loyalty by offering customized services. 


Say no to siloed data with poor data quality. Digital transformation can create seamless dataflow in the enterprise and allow employees from different departments and locations to collaborate with each other and work together to achieve their common goals. 


Digital transformation for businesses is a broad and all-encompassing strategy to overcome challenges, solve existing problems, and make the most of market opportunities. It helps drive growth in the organization by changing the operational processes and work culture. Digital transformation is an ongoing process happening in most establishments at different levels. It empowers your business to convert ideas into action and achieve the desired results. Talk to a digital transformation consulting firm to initiate change in your enterprise. 

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