According to IDC, worldwide spending on digital transformation technologies hit $1.3 trillion in 2017 and is forecasted to nearly double by 2021, when global spending on digital innovation efforts is estimated to surpass $2.1 trillion.
But what does digital transformation mean? The phrase refers to the integration of digital technology into all areas of business, improving overall operation and enhancing the value delivered to customers. The specific initiatives a company can take to digitally transform will differ case by case because there is no one size fits all approach that will satisfy each unique circumstance. What remains constant is that digital transformation efforts should be the bridge between customer expectations and what a business can actually deliver.
What Does Digital Transformation Look Like?
Consider how companies like Amazon and Uber have disrupted the marketplace with unprecedented business models that have heightened consumer expectations, so other businesses have to innovate or be left behind. Innovations like these are achieved when real-time data provided by devices like smartphones, connected devices, wearable devices and mobile commerce are paired with modern technologies such as cloud native apps, block chain, AI and big data systems. Combining vast data sets with new technologies yield customer and operational insights that improve products, processes and business-related decisions.
Some of the elements that comprise a digital transformation initiative are as follows:
- Customer experience – Utilizing data to curate the shopping experience by recommending relevant products based on past purchases.
- Operational agility – Ability to continually test, modify and improve processes that adapt with the dynamic business environment.
- Culture and leadership – Restructuring how a business utilizes technology, people and process to enhance performance and value proposition.
- Workforce – Allowing internal talent to allocate focus on cultivating domain expertise in order to facilitate high-value and high-impact work for company growth.
- Technology integration – Connecting customer databases, big data analytics, web and mobile apps to digitally record a 360-degree profile of a customer base.
Technologies Involved With Digital Transformation
- Cloud computing
- Internet of Things (IoT)
- Big data
- Artificial intelligence
- Block chain
Why Does It Matter?
Implementing digital transformation efforts within a business sparks a shift in company culture since businesses will need to be comfortable reinventing themselves. Long-standing organizational practices may need to be abandoned to experiment with emerging technologies and new, riskier methods of operation that are less defined.
As new technologies become available, companies that fail to adopt and implement them into their value proposition will be outperformed by nimble competitors who strategically adapt with the times.
Arrow Looks Five Years Out
Arrow looks Five Years Out to help you stay ahead of the competition and aware of new technologies and services. We can provide the right resources at the right time ‒ and, ultimately, help your customers find their purpose and build the right solution for their needs. Interested in learning more about how Arrow can support you with digital transformation? Connect with us today.
Last modified: July 11, 2019