Business digital transformation is the process of creating information-based innovations and digital services that can generate revenue (reduce costs). Growth of data volumes, increase in the capacity of computing resources, emergence of artificial intelligence (the availability of artificial intelligence), development of sensors and data processing technologies have become drivers of the economic sectors transformation.
The digital transformation of a company leads to a change in the business process management system, and therefore the entire business model.
At the moment, it is not enough just to have an Internet service or customer-oriented information technology. Today's digital business processes are mobile. It is a confluence of information technology and operational technology. Also, digital business processes are the introduction of innovation and automation.
Three areas of digital transformation can be identified. The first is the transformation of operational processes. This means the introduction of technologies and tools aimed at managing performance through automation and analytics.
The second direction is the digital transformation of customer experience. This is the clearest direction. Modern channels of interaction with customers allow businesses to track their reactions and behavior, influence loyalty.
The second direction is the digital transformation of customer experience. This is the clearest direction. Modern channels of interaction with customers allow businesses to track their reactions and behavior, influence loyalty.
The third direction is the digital transformation of the business model, which takes into account and builds on the two previous directions.
The benefits of digital transformation are increased business productivity. This is to reduce the production time (cycle time), the rational use of tools, as well as the optimization of logistics. In particular, the benefits can be divided into the areas listed below.
Increasing production and technology flexibility.
Production processes are easily reconfigured thanks to automation. This leads to rational use of raw materials, improved logistics and generally has a positive impact on the value chain.
Improving the quality of a product or service.
Online monitoring of parameters and the possibility of real-time predictive control prevents the risk of nonconforming products, and also reduces the cost of maintaining the established quality level.
Increasing the speed of processes.
Competitive advantage is provided by reducing the time from the idea of a product (service) to its market testing.
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Created on the basis of digital technologies new business models make it possible to effectively use them in the process of managing business processes for the successful operation of an organization in a competitive market environment by automating functions, optimizing production, increasing labor productivity, and reducing the cost of key processes.