Saturday, July 13

Digital business transformation of companies is gaining popularity

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Why is the digital transformation of companies’ business important for the modern world?

Rapid development of technologies makes us implement new solutions in different segments of life, including business. The pandemic has accelerated its transition to the plane of interaction with minimal live human participation in the processes. The digital transformation of companies’ business is in full swing, and to succeed, one must follow the trends.
According to analysts, in the near future, about 80% of large companies around the world will strengthen digitalization. And the process will not be affected by the global situation with economic slowdown and consequences of the pandemic.
The International Consulting Agency has interrogated 700 heads of various companies with turnover from 500 million dollars. During the interview it was found out that the pandemic has increased the demand for digital business solutions. About 90% of companies have implemented new systems to provide services to customers. And more than 70% of digitalization works are financed not by IT direction, but by services, which are engaged in business development.
Many owners of large corporations understand the necessity and prospects of such solutions. They actively invest in the implementation of new solutions, which will help the company to remain competitive and improve the service provided.
However, not everything is so smooth on the way to progress. Experts have evaluated the mistakes that companies make in the digitalization process. One of the main points is a miscalculation of the costs of business transformation. For example, in the retail segment, the costs of digitization projects will increase significantly. A little bit less expenses will be made in the insurance sector.

At the moment the most common approach to business improvement is a pilot one. A new digital solution is first implemented in one department or process, and if everything meets the previously defined goals, then the innovation is used for other segments. However, in the case of digitalization, there is not always a standard scheme for calculating efficiency.
For example, the company carries out a pilot project for the production planning process. For this purpose, they evaluate the orders and then develop the best option for their processing. However, if the repair work is not taken into account, the system will lose its efficiency. Therefore, for the digitalization of production facilities it is important to consider many factors that together strengthen the result of modernization.
One more point, when the owner plans to implement new systems at several enterprises simultaneously. In this case, it is necessary to understand that all links in the chain must work in a coherent and equally efficient manner. Otherwise, if the system at one enterprise fails and the work of others depends on its products, then the transformation becomes useless. Correspondingly, the digitalization will not show the efficiency, which was initially calculated.

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