Digital Transformation: How can my business get there?
The term “digital transformation” has been flying around the internet for years now, and not everyone is clear on the meaning. Take the words for their component parts and you might conclude it to mean a transformation driven by technology. This is an accurate—but incomplete—description of digital transformation. It is not solely technological changes that fill the roster of digital transformation, nor can an organization hope to fully realize all that this movement has to offer if they think within such limits.
Of course, we cannot minimize the impact the global pandemic has had to demonstrate the absolute necessity of digital transformation. As Microsoft’s CEO Satya Nadella said, “We’ve seen two years’ worth of digital transformation in two months.” Everything changed—how we work and learn, shop for and sell products, serve customers, spend time with friends and family, and stay healthy. Only through quick response, flexibility, and embracing new tech have businesses been able climb beyond this mountain of a challenge caused by the global crisis.
Now that the value of digital transformation was tested and proven in a global crisis, when it was absolutely necessary to adapt, the viability of embracing change beyond it is apparent, and it’s crucial to maintain momentum and not slip backward. So how can your business and industry get there?
What is digital transformation?
To more fully define the term, digital transformation is shifting the culture and processes of an organization or industry to deliver new value and a quality customer experience.
Technology, in many iterations, is the mode through which new approaches are discovered and made possible, and everything is driven by data visibility.
The goal is not to implement a bunch of technology in and of itself, but for businesses to harness next-generation technology to expand what’s possible, to innovate, and to serve their customers better.
The methods and channels through which we communicate, how and when we gather and analyze data, endless possibilities and interconnectivity of the internet of things (IoT), AI and machine learning telling us what can be improved and how and even do work for us, automating where we haven’t previously imagined was possible, and the expansive possibilities afforded from the cloud—these are common movers and shakers of digital transformation.
Examples across industries
Businesses in every industry can reap rewards of transforming their business, and while some things remain the same (think automating tasks, leveraging AI, collecting and using better data, and beyond), how each industry and business mold those tools will feel different and serve their unique needs. So, let’s look at how some industries have taken up the torch of innovation.
Many retailers create safer and easier shopping options with contactless experiences. Using an app to buy groceries online and then either pick your order up in the store, pick it up at curbside, or get it delivered to your doorstep. This is now a part of everyday life, but we might forget the quality of technology and the shifting business processes necessary to bring about these changes.
Financial institutions are using data-driven insights to assess and manage risk, provide video banking, protect from fraud in an increasingly ecommerce-heavy society, and serve customers faster with cloud-based customer service bots.
Manufacturers have a lot of avenues for transformation, like VR intelligence that can map and model physical environments to optimize system performance. Using the abundance, connectedness, and speed of modern data-gathering, manufacturers can also establish digital feedback loops to analyze activities and improve the effectiveness of future activities.
Healthcare has also embraced technology platforms that enable telehealth. Even before the pandemic, many providers could offer phone or video visits to reduce risk for autoimmune populations. That technology has been embraced by most hospitals and clinics for appointments where it’s not necessary to be physically present in the doctor’s office, allowing patients to continue seeking care while minimizing factors that may have traditionally posed an issue. Therapists have also taken up this mantel—video visits and text message sessions are making mental healthcare more widely available. Virtual reality is quickly advancing in healthcare, too, for supplemental imaging to MRIs or CT scans and for surgery preparation.
Case study example
Let’s dive into the details of a company’s innovation featured by Microsoft. Fruit of the Loom wanted to better understand the temperature conditions correlated with increased demand for their winter fleece products. Using Microsoft SQL Server, Azure machine learning, and Power BI, Fruit of the Loom was able to discover that in the winter and autumn months, a drop of twelve degrees or more within a six-day span—regardless the date or current temperature—would signal to the population of that region that “winter is coming” and trigger an upswing in fleece winter product sales. Using this knowledge, the company can now predict when consumers would seek winter wear—based on upcoming weather trends in their region—and stock their distributers’ shelves to adequately meet that need.
They were even able to save money on marketing, because ahead of the temperature drop, they found ads impacted sales very little. The expected temperature drop was essentially free advertising and pulling ads from those regions before the drop saved them money without reducing sales.
By embracing a data-driven approach to their processes, utilizing AI and machine learning to discover ways to better serve their customers, and automating restock suggestions for areas experiencing this twelve-degree temperature drop, Fruit of the Loom was able to improve their predictive capabilities, inventory control, profits, and customer satisfaction.
Technology to get you there
Undeniably, powerful tech is one of the necessary elements of digitally transforming your organization. Microsoft builds tools with endless possibilities in mind, equipping business apps—like the Dynamics 365 suite, Power Automate, and Power BI—with the features for digital transformation. AI, machine learning, automation, easy communication, seamless data connectivity, and the power of the Azure Cloud—these are cornerstones of Microsoft apps and foci of development as the cutting edge slices a path into the future. Need some examples? Head over to one of our blogs all about how the Dynamics 365 application suite can help drive your digital transformation.
Whether you’re just beginning your journey, or you’re already on the road, our technical consultants can help you move forward. From implementing a new Business Central ERP system or Dynamics 365 Sales or Marketing CRM equipped to meet all your needs, to helping you realize the scope of possibilities available with Microsoft Teams communication and productivity hub, compiling and organizing your data with Power BI data visualization software, or streamlining your workday by cutting down on repetitive manual tasks with Power Automate workflows, we can take your business needs and make them your new business strengths.