understanding-digital-transformation-and-its-importance-in-todays-business-landscape-Techwave

1. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave DIGITAL TRANSFORMATION UNDERSTANDING DIGITAL TRANSFORMATION AND ITS IMPORTANCE IN TODAY’S BUSINESS LANDSCAPE Index How digital transformation is changing the world What are digital transformation services? What are the objectives of digital transformation? What are the 5 domains of digital transformation? Why do companies need digital transformation? What makes a successful digital transformation? What is digital transformation in IT industry? What is digital transformation in banking? What is digital transformation in supply chain? What is digital transformation in telecom? What is digital transformation in manufacturing? What’s the ROI of digital transformation? Does digital transformation ever end? How digital transformation is changing the world Introduction Digital revolution has profoundly impacted society, altering how we live, work, and communicate, and will continue to shape it in the future. It has led to the widespread adoption of technology in every https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 1/34

2. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave aspect of society, disrupting traditional industries like retail and media to create new industries such as e-commerce and social media. Additionally, digital transformation has increased e?ciency and automation in many areas, such as supply chain management, ?nancial services, customer support, etc. This blog discusses how digital transformation is changing the world from every perspective. The Impact of Digital Transformation ● On Society and Communities : The advent of digital technologies, such as smartphones and smart TVs, has transformed society by providing easy access to information and entertainment. This has dramatically improved connectivity and communication, making it easier for people to share and receive information quickly. Social media platforms have also changed how people interact, allowing friends and families to stay connected and informed. In the era of emails, WhatsApp, and Snapchat, information can be transferred instantly to any global locatio. ● On Businesses : Businesses are adapting to changes in how people interact and consume products and services. This includes a shift towards a customer-centric approach, where companies prioritize the needs and preferences of individual customers. Examples of this can be seen in companies such as food delivery services like Zomato, which allow customers to order from their favorite restaurants from within the convenience of their homes or any location they prefer. 1.Effects on B2C businesses The B2C sector has become even more volatile owing to digital transformation and innovation (fuelled by the likes of Amazon and Net?ix). Thus, B2C companies constantly experiment with new strategies to attract and retain clients. Net?ix, a subscription-based DVD rental ?rm that used snail mail, underwent a digital transformation to become a well-known platform for video streaming services. It presented a practical solution while radically changing how the world consumed entertainment. Users could now view a movie on supported devices at their convenience. This propelled customer satisfaction and exploded all revenue charts. 2.Effects on B2B businesses The use of digital technologies has removed geographical limitations for B2B companies and streamlined the transaction process, making it more e?cient and multiplying competition. Additionally, digital technologies have signi?cantly impacted customer relationships in the B2B sector, with 75% of respondents in a Forbes survey indicating a preference for online deals due to their convenience and time-saving nature. We know that the mechanisms, ideas, and strategies that facilitate digital transformation in B2B are much distinct from those in B2C. It is more complex and strategy-driven (unlike in B2C, where it’s more emotion-driven). For example, digital tools like real-time dashboards help the sales team gain insights into customer data. Personalization tools power customized product recommendations, enhanced analytics facilitate targeted content delivery, and omnichannel customer support guarantees maximum convenience. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 2/34

3. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave ● Effects on innovation : The relationship between digital transformation and innovation is mutually bene?cial, with digital technologies driving new ideas and innovations, leading to the implementation of digital solutions. One example is the rise of digital marketing, which has led companies to adopt digital technologies to improve their marketing efforts. Additionally, innovations have increased productivity in individuals, business processes, and models, allowing companies to use resources e?ciently and make a more signi?cant impact. For example, chatbots allow companies to invest human resources in core competencies to drive business growth. How Digital Transformation Changes the Nature of Work? Automation and technology have replaced manual labor, shifting towards remote and hybrid working models. Digital technologies eliminate the human element of business, particularly for repetitive and manual tasks, to replace it with arti?cial intelligence, the internet of things (IoT), and robots. report, nearly 65% of young professionals worked from home in 2022. Corporate digital transformation improves market competitiveness, productivity, customer experience, revenue, and pro?ts. Businesses are implementing online training programs to assist their staff in adapting to these changes. It is an ongoing process that necessitates regular system updates and employee development. Conclusion To harness digital technology’s power effectively, consumers and businesses need to ?nd a balance between its use in daily life. Despite the convenience it may offer, society and companies must maintain a human touch and perspective. While digital advancements can improve productivity, they can also negatively affect society. Therefore, technology and human involvement must be collaborative and NOT exclusive to each other. What are digital transformation services? Introduction Organizations today adopt digital operating models and strategies to improve customer service, employee productivity, and business processes. According to a report, organizations that have embraced digital transformation services are predicted to account for more than half of the global Gross Domestic Product (GDP) by 2023. Also, the global digital transformation market is projected to grow to $1009.8 billion by 2025. What are Digital Transformation Services? https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 3/34

4. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave Digital transformation services incorporate digital technology in non-digital operations or enhance existing technology with improved e?ciency and productivity. It can include: Transitioning to a remote work environment from an on-site one Investigating and improving the customer journey using design thinking Implementing automated customer service Boosting sales e?ciency with AI-driven insights Automating employee performance evaluation What constitutes Digital Transformation Services? Companies must undergo multiple changes or modi?cations to implement digital transformation successfully. This process requires specialized knowledge and skills, which digital transformation specialists possess. These services, which include digital transformation consulting, strategy, and implementation, can be obtained from specialist companies or digital transformation partners to enhance the end-user experience. ● Digital Transformation Consulting: Transformation consultants create a plan that aligns with industry standards, market trends, and customer needs. The initial stages of digital transformation involve evaluating the current digital state and developing a strategy. ● Digital transformation strategy : The ?rst step in a digital transformation strategy is assessing current technology, business needs, customer expectations, and internal IT expertise and then designing a digital transformation strategy. Digital transformation services ?rms possess experts with robust IT solutions knowledge to provide clients with the best ?exible recommendations to alter as per evolving requirements during implementation. For example, a consulting digital strategy service determines which type of IoT services to leverage and what arti?cial intelligence (AI) and machine learning (ML) approaches to adopt to maximize ROI. ● Digital transformation implementation : The implementation ensures a smooth ?ow of digital activities that involve executing the transformation plan. For digital transformation implementation, organizations must follow ?ve key practices: Establish a strategic path Align the business goals Execute plan adaptively Encourage local innovation, creativity, and learning  https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 4/34

5. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave Maintain compliance with all applicable laws Manage risks to implement change Types of Digital Transformation Services Digital transformation-driven services vary depending on the industry, such as banking, retail, logistics, and supply chain. Effective digital transformation service providers will tailor their services to meet each industry and business’s unique needs and expectations. Some examples of digital transformation services: ● Arti?cial Intelligence (AI) : AI is a crucial technology driving digital transformation and enabling businesses to expand. It is utilized in various industries to enhance productivity, including national security, healthcare, logistics, and education. ● Internet of things (IoT) : It combines the physical and digital worlds to provide extended connectivity and functionality. For example, businesses often use IoT-enabled detection systems to monitor trespassing, including cameras and sensors in restricted areas. CCTV cameras enable operators to: Monitor a facility’s entrances and exits in real-time Follow the movement of the goods inside the building Alert any unusual activity ● Cloud Solutions : It is also known as cloud computing and offers IT resources over the internet. Companies are now migrating their data storage and computing power to the cloud, thus leveraging the power of cloud digital transformation.   With a clear impact on the function of the IT department, the cloud is the fundamental accelerator of digital transformation projects because it provides the scale and speed required for businesses to focus on change. The primary drivers for cloud adoption revolve around traditional bene?ts such as shifting from a CapEx to an OpEx environment.   Due to this, IT spending has changed from a capital expense to an operational expense, eliminating the need for a sizable upfront investment and replacing it with a predictable monthly price. By o?oading the cost to a third party, IT managers can begin to focus on new technology and innovative solutions that will not only help the business save money but also allow it to grow. This can enable the company to gain a competitive advantage and even enter new markets. ● Application Services and Modernization : Businesses are modernized by updating older software to newer computing approaches, including the latest languages, platforms, and infrastructure frameworks. The transformation from a monolithic to a microservices architecture https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 5/34

6. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave is the best example. Everything is designed, deployed, and scaled together in a monolithic architecture. In microservices, each component is isolated and deployed separately as a service, and the services communicate via API requests. Microservices enable teams to deploy apps faster and at a lower cost. ● Business Process Services : This service prepares businesses to embrace continuous changes. For example, business process services include outsourcing services to specialized organizations like data management services. It entails delegating responsibility for the access, integration, cleansing, controlling, storage, analysis, and processing of data for your company to a third party. ● Enterprise Application Services : These services enhance the digital experiences for employees, customers, and partners. Additionally, they aid in retaining skilled employees, fostering partnerships, and increasing business e?ciency. Many types of enterprise application services software are available depending on the requirement, such as accounts and billing, business intelligence (BI), enterprise content management, customer relationship management (CRM), etc. ● Infrastructure Services : The transformation of infrastructure for the digital era is another essential digital transformation service. These services are referred to as infrastructure services. Examples of infrastructure services include networking, communication services, data processing, and storage. For example, cloud infrastructure as a service (IaaS) is an online service that offers varied computing resources and rapid computing infrastructure through the internet. ● Security Services : These services address new-age security challenges and eliminate security threats in digital systems. For example, cyber security is one of the essential digital security services. Threat detection and services are one of the cyber security services that managed service providers (MSPs) generally provide. One of the most popular methods hackers use to access networks, for instance, is email. You may identify unusual behavior, mitigate it, and check for malevolent activities on customer endpoints by being consistently vigilant with their software and apps, such as Azure and Microsoft 365. ● Security Services : These services address new-age security challenges and eliminate security threats in digital systems. For example, cyber security is one of the essential digital security services. Threat detection and services are one of the cyber security services that managed service providers (MSPs) generally provide. One of the most popular methods hackers use to access networks, for instance, is email. You may identify unusual behavior, mitigate it, and check for malevolent activities on customer endpoints by being consistently vigilant with their software and apps, such as Azure and Microsoft 365. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 6/34

7. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave ● Intelligence Process Automation (IPA) Services : These services connect people, processes, and insights in a way that can lead to success at lower costs. IPA services help reduce human intervention and often replace it with AI to automate business processes. An example of IPA is using AI to pull customer data from the database and update records with additional information. Final Thoughts Thus, several digital transformation companies help businesses transform digitally by consulting experts, strategizing automation and applications, and delivering unique customer services to meet changing business and market requirements. What are the objectives of digital transformation? Introduction Imagine a world where the global economy is $13 trillion richer – that’s equivalent to adding the GDP of the United States and China combined! According to McKinsey Global Institute, this is possible by 2030, thanks to digitization, automation, and AI. These digital transformation technologies can create signi?cant new business opportunities and boost productivity to a point where it’s reinvested in economies. What is Digital Transformation? Digital transformation is about using technology to create a better experience for your customers, whether that’s through faster service, more personalized products, or more convenient ways to interact with your business. However, it’s also about using technology to improve your operations, from automating routine tasks to analyzing data to make better decisions. What are the Objectives of Digital Transformation? Setting clear goals and objectives is critical for any company undergoing digital transformation. However, the speci?c goals and objectives will vary between businesses depending on their unique needs and circumstances. Among the common goals of digital transformation are the following: 1.Improve Operational E?ciency through Automation and Process Optimization : One of the goals of digital transformation is to improve operational e?ciency through automation and process optimization. Automation involves using technology to perform tasks previously done manually, such as data entry or scheduling, and this can lead to increased productivity and reduced errors.   On the other hand, process optimization involves looking at how your processes currently work and streamlining and eliminating unnecessary steps. For instance, a company https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 7/34

8. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave might use digital signatures to streamline its contract approval process, allowing faster approvals. 2.Enhance Customer Experience Through Personalization and Engagement : Digital transformation has made it easier for businesses to connect with their customers in a more personalized way. Customers feel special when products, services, and communication are tailored to their needs and preferences. For example, Amazon’s personalized product recommendations and Net?ix’s curated movie and TV show lists are great examples illustrating the incredible impact of personalization.   Another way to create a deeper connection with customers is through engagement. This includes fostering a sense of community and encouraging active participation through social media platforms like Facebook and Instagram. Businesses can use personalization and attention to improve customer satisfaction, drive sales, and increase brand loyalty. 3.Increase Revenue through Digital Channels and New Business Models : Businesses can change how they operate with digital transformation. One of the many digital transformation outcomes is the increase in revenue. Companies can easily leverage the power of the internet to reach a wider audience and sell their products or services online. For example, Uber has disrupted the traditional taxi industry by using a digital mobile app to connect riders with drivers spontaneously. Companies can also explore new business models, such as subscription-based models or on-demand services that companies like Net?ix or Youtube use to cater to their customers. 4.Make Data-Driven Decisions with Real-Time Analytics : A key part of every organization’s digital transformation vision is collecting, storing, and analyzing vast amounts of data to gain valuable insights into customer behavior, market trends, and operations. For example, an e- commerce company can track customer browsing and purchasing habits to identify patterns and optimize its website and marketing strategies. 5.Establish an Agile and Scalable Business with Ease : Another critical aspect of the business transformation goal is to create an agile and scalable organization. Agile refers to the ability to adapt and respond quickly to changes, while scalability is the ability to handle an increase in demand or growth. An example of an agile and scalable organization is a retail company that utilizes real-time data to adjust inventory quickly and meet customer demand. It uses websites and other digital means to expand its operations and offerings as its popularity and customer base grow. 6.Improve Compliance with Data Security Compliances : In light of the increasing volume of sensitive data being stored and shared, companies must adhere to compliance regulations such as the GDPR, HIPAA, and more. Businesses can quickly achieve this digital transformation https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 8/34

9. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave business objectives by performing regular data audits or inspections through mobile checklists and tools. For example, Data Subject Access Requests (DSAR) software tools help businesses respond to consumer data access requests as mandated by laws like the GDPR and the California Consumer Privacy Act (CCPA). 7.Reduce Costs and Improve the ROI : Digital transformation can lead to cost savings by automating manual tasks, reducing the need for physical infrastructure, and increasing operational e?ciency. For example, a retail company may use digital tools to automate inventory management, which can reduce the need for human labor and decrease costs. Another example is a manufacturing company using digital transformation technologies to optimize its production line, which can lead to more e?cient use of resources and a reduction in operational costs. Conclusion Digital transformation is an ongoing process that requires a thoughtful and ambitious approach to stay ahead of the curve. Think of it like a personal ?tness journey. Just as a person must assess their current physical health and identify areas of improvement, a business must transform its operations to achieve these seven common digital transformation objectives to become more competitive, e?cient, and agile. What are the 5 domains of digital transformation? Introduction Digital transformation uses technology to revamp business processes, culture, and customer experiences to meet the evolving needs of the digital world. It encompasses using tech to drive work, strategy, and product transformation. The 5 domains of digital transformation are customer, competition, data, innovation, and value, each   with unique challenges and opportunities. What are the 5 Domains of Digital Transformation? ● Customer : Digital transformation in customer service provides valuable customer insights, improves service, and boosts loyalty. By utilizing digital channels such as social media, websites, and apps, companies can gain a deeper understanding of customers and offer personalized experiences. Feedback collected through social media can inform product/service development and customer service practices. Automation streamlines customer support, allowing quick and e?cient responses and proactive issue resolution, leading to increased customer satisfaction. This makes customer service digital transformation a vital aspect of the ?ve domains of digital transformation. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 9/34

10. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave ● Competition : 62% ?rms report digital transformation has enhanced their competitiveness. A digital transformation framework can aid companies in identifying and creating new opportunities to stay competitive. For example, IoT, AI, blockchain, and other emerging technologies can be used by digital products to collect and pro?t from consumer data, which is advantageous for both B2B enterprises and their customers. Here’s an example of how embracing digital technology helped label and container makers sustain market disruptions. They began utilizing radio frequency information technology (RFID), leading to a cascade of supply chain e?ciency throughout multiple industries. They have gained victory in the competition with other giant players. Contrarily, established players in the medical device industry have been sluggish in switching to a digital-?rst strategy. As a result, they currently ?nd themselves in a ?erce rivalry with much smaller insurgents whose digitally enhanced products can be provided for a far lower price. ● Data and analytics : Digital and IT transformation services aim to enhance IT infrastructure and processes by utilizing digital technology, focusing on software adoption, cloud computing, machine learning (ML), and arti?cial intelligence (AI). 50% of corporate strategies, as noted by Gartner, emphasize data and analytics as key to delivering enterprise value. Adopting cloud computing and automation saves costs, and AI/ML helps businesses analyze data better and make smarter decisions. Business leaders use data analytics, but it is not limited to the C- suite. It can be used at all levels of the organization where decisions are made. Whether your company is large or small, established or just getting started, data-driven, informed decision-making will help improve operational e?ciency, increase pro?tability, acquire customers, and keep them satis?ed. For example, A human resources manager might utilize data analytics to assess the impact of internal process changes on employee retention. Or a marketing manager might run data analysis to evaluate how advertising campaigns have affected sales for speci?c product lines. ● Data and analytics : Digital and IT transformation services aim to enhance IT infrastructure and processes by utilizing digital technology, focusing on software adoption, cloud computing, machine learning (ML), and arti?cial intelligence (AI). 50% of corporate strategies, as noted by Gartner, emphasize data and analytics as key to delivering enterprise value. Adopting cloud computing and automation saves costs, and AI/ML helps businesses analyze data better and make smarter decisions. Business leaders use data analytics, but it is not limited to the C- suite. It can be used at all levels of the organization where decisions are made. Whether your company is large or small, established or just getting started, data-driven, informed decision-making will help improve operational e?ciency, increase pro?tability, acquire customers, and keep them satis?ed. For example, A human resources manager might utilize data analytics to assess the impact of internal process changes on employee retention. Or a marketing manager https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 10/34

11. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave might run data analysis to evaluate how advertising campaigns have affected sales for speci?c product lines. ● Value : A value proposition of business explains to their potential customers why they should choose them over their competitors and leverage the bene?ts of their products and services abundantly apparent from the beginning. It also guarantees that businesses will provide the bene?ts they promise for their products or services. Consider the example of how Amazon outpaced eBay with its compelling value proposition for all stakeholders – sellers and buyers. Here are a few stats: For FY 2021, Amazon signi?cantly surpassed eBay in sales, posting a trailing 12-month (TTM) revenue of $470 billion in contrast to eBay’s revenue of $10.3 billion. Amazon’s net income was $33.36 billion for the TTM versus $5.7 billion for eBay. Conclusion The 5 domains of digital transformation offer a complete strategy to use technology to improve value and boost business growth. While each digital domain presents its challenges, focusing on each one individually and then exploring ways to connect the dots with technology can lead to a roadmap for digital transformation that brings short and long-term success. Why do companies need digital transformation? Introduction Most business owners today strive for innovative ways to differentiate themselves from competitors. Digital transformation initiatives is one way to do it. To successfully satisfy the demands and expectations of customers, businesses must adapt to digital innovations and breakthroughs as part of their evolution. In other words, enterprises require digital transformation consulting to achieve technological integration in their existing infrastructure and propel their company to the top. What includes digital transformation for businesses? Digital transformation involves moving from traditional methods to technology-based production and distribution processes. It encompasses products, employees, operations, customers, competitors, and channels. It leads to automation and improved e?ciency in business operations. What are the factors that push companies toward digital transformation? Three factors drive businesses toward digital transformation: https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 11/34

12. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave Market trend Competitiveness Customer expectations Sustainability concerns For example, retail stores adopt online selling to keep up with market trends, as seen with Amazon’s platform-based selling. The constant threat of losing customers and market share motivates companies to embrace digital transformation. What are the bene?ts of digital transformation in business? The following discussion re?ects on the answers to this question. ● Improved data collection : Businesses require customer data to turn it into meaningful insights that support their decision-making and strategy planning. Digital transformation in companies improves data collection, storage, analysis, and sharing.   Planning a digital transformation strategy enables businesses to implement strong privacy measures to protect customer information. For example, Amazon leverages customer data to comprehend their preferences and search habits, improving customer satisfaction. ● Better management of resources : One signi?cant advantage of digital transformation for businesses is its all-pervasiveness. It applies to business departments like production, sales, marketing, ?nance, and supply chain. This consolidates resources and information and helps to avoid vendor overlap. Also, digital transformation integrates databases, applications, and software into a central repository, generating business intelligence that multiple departments can access simultaneously, speeding up time-to-market (TTM). ● Better customer insights : Understanding customers’ changing moods and behavior is essential for success. Digital transformation unlocks data-driven insights to help businesses transform their product design, marketing strategies, and prices to become more customer-centric. Besides, real- time data-driven customer insights help identify customer needs and their changing expectations from companies, making it easier to develop suitable content that will appeal to the customer psyche and avoid failures. ● Improved Customer Experience : Implementing a digital transformation strategy allows ?rms to offer smooth and user-friendly experiences to customers. It also enables ?rms to communicate with customers via various channels such as email, user portals, social media, etc. A positive experience leads to increased customer retention. With many options and high expectations, customers demand a better experience, making customer experience a key factor in competition. ● Improved collaboration : Leveraging the right digital tools and technology can enhance team collaboration, making it seamless and e?cient. For example, messaging and team management applications and tools like Slack, Teams, etc. enable better cross-function cooperation, fuelling faster https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 12/34

13. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave and better decisions. Implementing digital transformation also alters organizational culture, promoting digital agility and increased productivity. ● Higher pro?t generation : As per the latest IDC report, global digital transformation spending was projected to increase by 17.6% to $1.8 trillion in 2022. This indicates how companies embrace digital technologies for growth and pro?t, pumping up their market shares. In other words, the logical and proven consequence of all the earlier points is higher sales and pro?t generation. Conclusion Digital transformation allows organizations to sustain market disruptions and calibrate their offerings to evolving customer inclinations. By adopting digital technologies and processes, businesses can improve e?ciency, reduce costs, increase revenue, and drive growth. What makes a successful digital transformation? Introduction Success in traditional transformations is an uphill task, and successful digital transformation and innovation require even more effort! Digital transformation involves continually evolving and reshaping an organization’s processes through the implementation of new technologies, development of talent, and improvement of customer experience, all while integrating cultural change seamlessly. Why is Successful Digital Transformation Crucial for Businesses? Successful digital transformation helps companies gain market share, boost pro?t margins, and improve customer experience. It empowers all business units (BUs) to drive process innovation and e?ciency within the organization. Businesses must shift from traditional operations to a more digital approach for successful digital transformation. Companies like Net?ix, Apple, Airbnb, Amazon, and others have successfully transformed digitally, leading to rapid growth and better customer satisfaction. So, is it simple to change and succeed? The answer is No for the signi?cant part. The rise in innovative digital technologies is shifting the industrial ecosystem rapidly. Enterprises plan for change and work hard to adapt to the new environment; however, this mammoth change can also bring a lot of digital transformation risks. Digital transformation poses risks and requires a robust methodology and roadmap to mitigate them. Despite the challenges, successful digital transformation is essential (and can be seamless with the support of a right-?t digital transformation partner), and it is crucial to understand the factors determining its success. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 13/34

14. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave What are the Key Pillars of a Successful Digital Transformation Strategy? ● Robust Organizational Change Management (OCM) : It is typical to transform the organizational culture and business conception together. Companies must set up an organizational change board or committee with all the change leaders to build a strong digital transformation roadmap.   Organizational Change Management (OCM) is an approach to managing and implementing organization-wide changes effectively, and leaders must establish an OCM committee of change leaders. This committee can promote a smooth top-down implementation of OCM, focusing on new technology adoption, talent development, and business process realignment.   OCM helps organizations align their business objectives with digital transformation, improve communication, provide support, enhance the skills of stakeholders, and monitor progress throughout the change process. ● Finding the Right Balance between People, Processes, and Technology : The saying “A fool with a tool is still a fool” highlights the importance of balancing the equation of people, processes, and technology for successful digital transformation. Many organizations focus on acquiring and implementing new technologies and neglect the human aspect. Advanced technologies are crucial for improved customer experience, but the personal touch is also vital. This includes adopting new tools and platforms, hiring new talent, cross-training existing staff, and providing customer training.   When the pandemic struck, many businesses went digital to serve their customers more securely. The telecommunication industry has set one of the best examples during the pandemic.   Forward- thinking telcos recognized the growing challenge of customer retention and strategically altered their people, process, and technology pillars to better cater to their consumers’ digital demands and expectations, like timely services, personalized attention at every customer touchpoint, prompt customer service, and best data security, among others. During the pandemic, they kept offering a better customer experience at a reasonable price. This way, telcos played a crucial role in understanding customer needs through a digital lens during a pandemic. ● Agile Innovation : A successful digital transformation requires constant innovation, driven by a commitment to rethinking current business processes and exploring new possibilities. Agile, scalable innovation involves testing ideas on a small scale, quickly assessing results, and expanding successful solutions. This, in turn, can result in quick win proofs-of-concept (POC) and resulting clientele. Top-down leadership involves educating and empowering stakeholders and is key to fostering an innovative culture. ● Data & Analytics : Quick, informed decision-making is critical to competitiveness and success, and this can only be achieved through accurate data. Analytics provides insights from this data, enabling better decision-making. For example, dashboards with interactive data visualization allow users to oversee several critical areas by displaying historical trends, actionable insights, and real-time information in a comprehensive and digestible format. By prioritizing data and analytics, enterprises can tackle current business challenges and ensure a successful digital transformation in the long term. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 14/34

15. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave ● Focus on Right and Adequate Investments : Successful digital transformation requires funding, and leadership’s strong focus on investment enhances the emphasis on transformation. Enterprises should begin with small, self-funded projects, and as involvement increases, so do opportunities for seed funding.   Independent econometric research conducted by the Department of Business Technology at the University of Miami School of Business in collaboration with Forbes Insights con?rms that investment in technology results in higher revenue growth rates. In a study of the world’s largest companies, the companies that invested in technology from 2007 to 2009 had a revenue growth rate from 2010 to 2015 that was twice that of companies that did not invest in technology. Conclusion Over time, the implications of digital transformation have evolved and will continue to change. The growth has gone from data mining and legacy on-prem infrastructure to cutting-edge technologies such as arti?cial intelligence (AI), machine learning (ML), cloud, blockchain, and the Internet of Things (IoT).   However, success in digital transformation requires more than just upgrading technology. Enterprises must raise their team’s digital IQ and adopt modern technological solutions to drive business growth. What is digital transformation in IT industry? Introduction The world has changed dramatically in recent years with the rise of social media, e-commerce apps, and cloud technology. It’s easier to imagine a world with these platforms today. Just a few years ago, customers had limited options for interacting with businesses. They were limited to visiting a physical store for even the most minor purchases. However, the situation has changed, especially in the post-COVID era, with a greater emphasis on digital solutions. This has made life easier for people. Businesses are adopting digital transformation for various reasons, but the primary one is that it is now necessary.   By going digital, businesses have increased access to the world and markets. They’re using digital solutions to improve customer engagement. It’s now easier to conduct business globally and reach customers from anywhere. What is Digital transformation? Digital Transformation implies incorporating digital technology into all aspects of a company to meet changing customer needs and expectations, leaving behind traditional business practices. This requires a shift away from conventional business processes and a more collaborative, innovative mindset at all levels of management, leading to improved customer experiences and growth. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 15/34

16. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave What is IT Digital Transformation? An expert at Red Hat puts it somewhat like this – “Better living through software – that’s what digital transformation is.” If that does not summarize the de?nition of Digital Transformation in the IT industry, then we don’t know what does. Digital transformation and technology go hand in hand. To meet customer expectations, enterprises have been embracing the following technologies in their business processes: Internet of Things (IoT) Cloud Computing Arti?cial Intelligence (AI) Edge Computing Robotic Process Automation (RPA) Mobile platforms Hybrid Cloud  Microservices Block Chain Advanced data & analytics Digitization This Information technology transformation has worked out so well for biggies like Net?ix and Amazon. They have improved customer service and experiences, optimized the supply chain, and developed exceptional e-commerce and delivery models; simply because of the latest technology used and embraced by them in their business processes. How is Digital Transformation Bringing About a Change in the IT Industry? ● Digital transformation has helped the IT industry implement the right technology : Advancements in technology have enabled organizations to create unique, personalized experiences for their customers, leading to stronger customer relationships and increased market growth.   For example, the Metaverse market, estimated at roughly $40 billion, is expected to grow at an annual rate of 39% in the coming years.   With the rise of the metaverse market, companies can prioritize digital security and data privacy to maintain customer trust and protect sensitive information. For this, businesses are implementing clear strategies for data protection and the ability for customers to opt out of sharing personal information. ● Digital transformation has helped the IT industry implement the right technology : Advancements in technology have enabled organizations to create unique, personalized experiences for their https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 16/34

17. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave customers, leading to stronger customer relationships and increased market growth.   For example, the Metaverse market, estimated at roughly $40 billion, is expected to grow at an annual rate of 39% in the coming years.   With the rise of the metaverse market, companies can prioritize digital security and data privacy to maintain customer trust and protect sensitive information. For this, businesses are implementing clear strategies for data protection and the ability for customers to opt out of sharing personal information. ● Digital Transformation has helped bring success to IT enterprises’ supply chains: Intelligent Robotics, 3D printing, and open-source hardware are a few technologies that can give IT leaders more control. These technologies can lead to a more robust supply chain, and help enterprises adapt to change faster.   By automating business processes, leaders can bring about ?exibility in their operations and decision-making. Arti?cial Intelligence can help enterprises monitor quality and track performance in real-time.   For example, Walmart’s new infrastructure enables the retailer to increase its e-commerce assortment while decreasing shipping time and cost. Walmart is investing in warehouse automation in distribution centers to deliver aisle and department-ready pallets (a portable and rigid platform used to pile up, store, assemble, or transport goods) to stores. Walmart is also expanding its pickup and delivery capabilities. ● Digital transformation works in sync with the IT organization’s sustainability goals: Organizations must work with employees, suppliers, customers, and partners to make sustainability central to their business strategies. These sustainability goals should be made clear and continuously broadcast to all stakeholders.   Digital and sustainability transformations complement each other. Data and technology de?ne sustainability measures and aid in achieving sustainability goals.   Cloud computing is one of the best examples of how digital transformation-driven technology can facilitate sustainability goals. It guarantees digital advantages, including improved organizational agility and company sustainability. How? By reducing cost and carbon footprint.   Businesses have discovered that migrating to the public cloud may save costs while gaining ?exibility and scalability. Cloud is advantageous for the environment as well. Local servers signi?cantly increase carbon emissions. Cloud servers are powered e?ciently and reduce electricity usage for individual businesses, further cutting overhead expenses and also the carbon footprint on the company’s data center. ● Digital transformation provides better cybersecurity for IT enterprises : IT leaders now view cybersecurity as a revenue generator instead of an expense. It is getting easier to crack into public critical systems now. Data breaches are now more expensive and costing companies a big deal.   By leveraging digital transformation, IT leaders are now taking a more proactive approach to cybersecurity to protect their organizations from evolving threats. Leaders are now able to prepare all the stakeholders for complex cyber risks. How? By leveraging AI technologies and automation. Also, leaders are now considering their cybersecurity teams as valuable assets and investing in and equipping them.   For example, AI may identify the crucial linguistic patterns used by hackers to upload new risks on the dark web and notify experts. More particularly, AI-enabled analytics can assist in deciphering the language and code words that hackers use to describe their new instruments, methods, and approaches. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 17/34

18. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave Conclusion Digital transformation in IT has revolutionized the operations and functioning of various industries. Its continued success has proven to be a boon for businesses, improving productivity and customer experiences, and fostering innovation, giving IT enterprises a competitive edge for growth and prosperity. What is digital transformation in banking? Introduction Digital transformation in banking utilizes technology to enhance processes, products, and services for bank customers. This encompasses mobile/online banking, data analytics, and social media to boost operational effectiveness and customer satisfaction. Banks can leverage customer data to gain insights and make informed decisions, resulting in stronger customer relationships. How has Digital Transformation Digitized the Banking Industry? The digital transformation in banking utilizes cutting-edge technologies like arti?cial intelligence (AI), machine learning (ML), blockchain, and the Internet of Things (IoT) to revolutionize an organization’s operations, customer value, and goals.   Digital Banks are ?nancial institutions that also operate online or via mobile apps. They offer conventional banking services such as current accounts, credit cards, loans, and more but prioritize digital delivery and user experience, often with limited or no physical branches (like, in the case of other types of banks like Neobanks or Challenger banks). They utilize digital tools such as data analytics, AI, and ML to offer personalized services, enhance e?ciency, and lower costs.   Online digitized banking applications, KYC system software, website optimization, data encryption software, etc., are a few instances of digital transformation in banking. What are the Bene?ts of Digital Transformation in Banking? Digital technologies streamline and automate almost everything – from customer acquisition and management to transactions and ?nancial advice while improving customer experience through digital channels like – online banking, mobile apps, and social media.   Digital engagement with clients, data-driven product and service design, and operational e?ciency through automation are all part of this transformation. Data analysis and AI can inform decision-making and manage risks for a more agile, customer-centric, and future-ready banking system.   For example, customers truly mean it when they need “real-time” assistance. Banks scale their service using chatbots and offer real-time support utilizing live assistance solutions like co-browsing and video chat, chatbot, and video KYC.   Video KYC is a prime example of live assistance. Real-time support can bene?t banks in the following ways: https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 18/34

19. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave Recognizing even the most minor or insigni?cant problems Knowing how to improve the customer experience Identifying the issues and pain points that customers have with the bank Improved knowledge of their customers Digital Transformation Strategy for Banks Banking organizations can build a successful digital transformation with the following strategy. Identify their opportunities and challenges related to digital transformation in banking. De?ne their vision and goals for digital transformation in banking.  Conduct an audit of their current operations.  Choose a transformation strategy.  Create a prioritized transformation roadmap.  Implement their transformation strategy.  Create a culture of transformation throughout the organization. The Best Digital Transformations Technologies used in the Banking Industry ● Cloud Technology : The banking industry adopts cloud technology to lower expenses and enhance ?exibility through a pay-per-use model for computing resources, eliminating the need for costly upfront investments in hardware and software. This technology enables ?nancial institutions to easily adapt their computing resources to changing business requirements. Cloud providers frequently provide improved security features and ongoing software updates, bene?ting ?nancial institutions.   One such example is omnichannel cloud-based customer engagement. Cloud-driven omnichannel banking assists banks in managing a wide range of digital channels with faster time-to- market and lower IT expenses.   Customers have 24/7 access to the bank’s products and services. They can switch channels without a hitch or noticeable delay and have a comparable user experience. Due to the convergence of virtual (online) and physical (branch) banking channels, a customer, for instance, can initiate a ?nancial transaction in one channel, examine it in another, and conclude it in a third channel.   For example, a customer can request to open a bank account by visiting a bank branch in person, depositing some cash via a cash deposit machine, and checking their account balance via a mobile banking app. ● Robotic Process Automation (RPA) : RPA (Robotic Process Automation) automates repetitive tasks, including data entry, customer inquiries, and ?nancial transactions. RPA can be integrated with other software and systems, streamlining processes and allowing employees to focus on higher- value tasks. This leads to improved e?ciency, reduced errors, and cost savings.   These routines and https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 19/34

20. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave rule-based tasks are simple to automate with RPA, signi?cantly reducing the process Turn Around Time (TAT). For example, RPA in banking automates the entire Anti-Money Laundering (AML) investigation process. A single case inquiry can take anywhere between 30 and 40 minutes. ● Arti?cial Intelligence (AI) :AI-powered chatbots and virtual assistants can be customized to respond to customer queries and requests, improving customer experience.   For example, a chatbot can automate simple and everyday tasks such as alteration in addresses, checking accounts, and credit card balances where human interaction is not required. These bots can also conduct conversations appropriately and adapt to the person’s preferred language and timing! ● Customer Journey Mapping Digital Tools : Customer journey mapping understands customers’ paths when interacting with banks and identi?es areas for improvement. Also referred to as user journey mapping tools, these are digital tools that gather and present quantitative and qualitative data on user interactions with a bank’s website or product so they can better understand their buyer persona.   Google Analytics is a tra?c analytic tool that tracks user tra?c and engagement on a bank’s website. ● Social Media Management : Social media management tools monitor, respond to and engage with customers on social media channels, enabling banks to create a more personalized experience. Among all social media platforms, banks use Facebook, Twitter, and LinkedIn the most. Social media tools help banks in: Boosting customer service Improving online reputation management Increasing brand awareness and visibility Gaining a deeper understanding of customers Increasing accessibility For example, banks can proactively manage their reputation and deal with negative opinions by actively monitoring and responding to customer criticism on social media. Banks and ?nancial institutions may effortlessly and rapidly address consumer concerns, grievances, and feedback through social media, enhancing customer experience.   Hence, embracing digital transformation in banking is a critical step in the ever-evolving market scenario to stay relevant and sustain technological disruptions. What is digital transformation in supply chain? Introduction The increased usage of big data and technological advancements, including the Internet of Things (IoT) and connected devices, have altered how supply chains are strategically managed. Digital https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 20/34

21. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave transformation has dramatically impacted supply chain operations, particularly in material handling, in addition to – ?nancing, procurement, and warehousing. Digital Transformation in Supply Chain – What it Means? “Digital Transformation in Supply Chain” integrates digital technologies into all aspects of the supply chain, from sourcing to logistics. It improves e?ciency, accuracy, and speed through automation, better communication, and real-time decision-making among partners. Examples include ERP systems, logistics management software, and goods tracking sensors. Features of Supply Chain Digitization ● Automation : aims to streamline tasks and processes within the supply chain through robotics, machine learning, and arti?cial intelligence to achieve greater e?ciency.   For example, Processing invoices entails putting data into the system, sorting and scanning bills, and producing reports. The process might be monotonous and repetitive for employees, who might not always have the right tools at their disposal. Consider this – monitoring scanners as customers scan their purchases. Automation in the supply chain can automate this technique by recognizing the pertinent data (such as the product name or price), storing it in a database for later use, and transferring it to other systems via APIs. Employees can save time by inputting data automatically while increasing the accuracy of invoice entries. ● Connectivity : strives to link various supply chain elements, such as suppliers, manufacturers, and distributors, to enhance communication, collaboration, and coordination among all parties involved.   One example is the end-to-end transportation network used by Amazon. Amazon was able to take its services to the next level by investing in-route optimization systems. Their focus on route optimization contributed to their brand becoming entirely compatible with quick, e?cient, and dependable deliveries. ● Visibility : seeks to enhance transparency throughout the supply chain by using sensors, tracking technologies, and other means to monitor the status and movement of goods as they progress through the supply chain.   For example, it is essentially a universal truth that inventory shrinkage occurs. When your company’s inventory is lower than what was recorded in your records, this is known as inventory shrinkage. It can occur when products, such as expired produce, are obviously unsellable. It could also be the result of damaged goods. Inventory shrinkage costs organizations money, whether goods are damaged, lost, or stolen. Supply chain visibility using cutting-edge tracking technologies can help account for inventory and reduce or eliminate shrinkage. ● Customization : aims to provide more customization options for products and services by utilizing 3D printing, advanced manufacturing techniques, and other technologies to produce goods as needed.   For example, the healthcare industry uses 3D printing applications to produce stock items like knee and hip implants and customizable patient-speci?c products like orthotic insoles for shoes, hearing aids, and individualized medications. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 21/34

22. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave ● Analytics : helps to gain a deeper understanding of the supply chain and make informed decisions based on data by leveraging big data, business intelligence tools, and other technologies to analyze supply chain data in real-time.   The time lag between expected and actual delivery is one of the biggest concerns of logistics companies. Applying big data analytics in supply chain management lessens the risk of inaccurate delivery timings. With big data analytics, large warehouses, for example, can mechanically rearrange pallets at night to improve scheduling for the next day. Businesses can also monitor the performance of pickers in various picking zones to optimize the workforce in the future. What are the bene?ts of digital supply chain management? The bene?ts of digital supply chain management include the following: 1. Enhanced e?ciency : Faster completion of tasks, resulting in improved e?ciency. The next-generation supply chain – An overview It is challenging to forecast the evolution of the supply chain, as it is susceptible to various in?uences such as technological progressions, global economic conditions, and shifting consumer preferences. Nevertheless, the following trends are expected to play a crucial role in shaping the industry in the upcoming years: 1. Increased Digitization : Many businesses are embracing digital tools to boost the e?ciency of their supply chain, for example, utilizing data analysis to streamline production and transportation and automating and robotizing processes. 2. Sustainability emphasis : Companies face growing pressure to minimize their environmental impact and reduce their carbon footprint. This will likely result in a heightened focus on sustainability in the supply chain, such as utilizing environmentally friendly transportation methods and adopting sustainable procurement practices. 3. Emergence of e-commerce : The rise of e-commerce has accentuated the signi?cance of last-mile delivery and the need for streamlined order ful?llment 4. Importance of resilience : Disruptions like natural disasters, pandemics, and geopolitical tensions, can impact the supply chain. Therefore, organizations are likely to emphasize building resilience in their supply chain operations to minimize the risk of disruptions. 5. Increased collaboration : Many companies are looking to build more collaborative relationships with their suppliers, customers, and other partners to improve e?ciency and responsiveness in the supply chain. Conclusion https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 22/34

23. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave The digitization of supply chains enables businesses to become more ?exible and better equipped to respond to ?uctuations in market trends. The outcome of digital transformation in supply chain is contingent upon a company’s speci?c requirements and objectives and its capacity to embrace and apply innovative technologies effectively. What is digital transformation in telecom? Introduction The digital telecommunications industry is crucial in enabling worldwide communication and is a vast market. With the growing demand for remote work, the needs of telecom customers are constantly changing, and they demand top-notch services from their providers. Telecom companies can leverage digital transformation to meet these expectations and enhance their offerings. What is digital transformation in Telecom? Digital transformation in telecom industry involves leveraging digital tools to revolutionize how these companies operate and provide value to their clients. This may include introducing innovative digital systems and tools, streamlining business procedures through automation, utilizing data analytics to make informed choices, and creating new digital offerings.   It aims to increase e?ciency, cut costs, and improve the customer journey. Digital transformation encompasses many technologies, including cloud computing, the Internet of Things (IoT), Arti?cial Intelligence (AI), and 5G networks. What are the four types of digital transformation in the Telecom industry? The telecommunications industry undergoes several forms of digital transformation, including: ● Network Transformation : involves upgrading and digitizing telecom networks to enhance e?ciency, speed, and dependability. Some examples include implementing new technologies such as 5G, utilizing software-de?ned networking (SDN), and integrating virtualization and cloud technologies. ● Customer Experience Transformation : enhances how customers interact with a telecommunications company digitally. This could affect the creation of self-service portals, implementing of chatbots and virtual assistants to manage customer inquiries, and utilizing data analytics to personalize customer experiences. ● Operational Transformation : involves streamlining and automating internal processes and systems with digital technologies. This could include adopting digital tools for billing, inventory management, and workforce management. ● Business Model Transformation : involves changing how a telecom company operates digitally. This could include developing new products and services, using data analytics to inform business decisions, and incorporating new business models, such as the subscription-based model. https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 23/34

24. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave Digital transformation in Telecom trends Following are some of the key digital transformation trends in telecom: ● 5G technology : 5G is set to revolutionize the telecom sector with its lightning-fast speed, estimated to be ten times faster than 4G. This enhanced speed will support more connected devices while providing better coverage and reducing latency. Additionally, 5G boasts ample bandwidth and can support high-demand services such as virtual and augmented reality.   For example, 5G will signi?cantly increase mobile broadband speeds, allowing users to stream high-de?nition video, download large ?les, and surf the web at breakneck speeds. ● Cloud computing : Despite being around since the 1990s, cloud computing has only recently gained traction as a viable solution for hosting applications within the telecom industry. By leveraging cloud computing, companies can reduce their capital costs for scaling and respond to spikes in demand more quickly.   With the collaboration of cloud service providers (CSPs) and telecom industries, cloud computing improves the e?ciency of data centers and server utilization. For example, Google Cloud technologies can help build a network operating system with better visibility, security, and functionality. One such innovation is Anthos, a multi-cloud solution built on open-source software. ● Arti?cial intelligence : With the vast amount of customer data now available, telecom providers can harness the power of AI to make predictions, identify trends, and improve customer service. Integrating AI into the telecom sector enables companies to make informed decisions based on valuable insights gathered from the data.   Customer matching with the most appropriate data packages is a common AI use case in the telecom sector. Self-learning algorithms gather knowledge about which packages ?t different consumer types, relieving call operators’ workload and signi?cantly improving the effectiveness of the sales process. The future of digital transformation in Telecom Digital transformation will not only enhance customer interactions for businesses but also provide telecom companies with a wealth of data that can be utilized to enhance their services, introduce new offerings, and offer a more personalized experience to clients. The industry is expected to witness more consolidation through mergers and acquisitions as competition intensi?es, particularly with the entry of tech giants like Amazon and Google. This requires existing players in the telecom sector to stay ahead of the game and retain their customers. Conclusion Traditionally, telecommunication ?rms regarded digital transformation as merely a technical venture offering digital services. But the truth is, it encompasses a range of intricate aspects that impact a company – from systems and processes to data management, skills, and culture. Hence, telecommunication companies must harmonize their customer engagement approach with the https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 24/34

25. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave leading consumer industry standards to stay ahead of the competition. The need for this transformation is pressing and has already started to take shape in several telecommunication companies. What is digital transformation in manufacturing? Introduction Digital transformation (DX) incorporates digital technology into all aspects of a company, continuously exploring new possibilities and enhancing ?exibility and adaptability to transform organizational operations fundamentally. What is Digital Transformation in Manufacturing? “Digital transformation in manufacturing” is the process by which a company enhances its production methods using advanced digital technologies to improve various aspects of the manufacturing process. It can be implemented gradually or through a holistic approach, with digitization and software applications as the primary drivers. Why is Digital Transformation Important in Manufacturing? With the impact of digital transformation, companies are now prioritizing adopting advanced technology to automate their manufacturing processes, aiming to boost revenue, improve quality, lower costs, and increase ?exibility to maintain competitiveness in the market. According to a report, global DX spending is predicted to reach $3.4 billion by 2026   A few of the many bene?ts of digital transformation in manufacturing industry are as follows: Enhanced security, lower occupational injuries, and fewer accidents Improved quality output Increased productivity Faster problem resolution Better inventory planning Improved real-time data Minimized overall costs 6 Examples of Digital Transformation in Manufacturing https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 25/34

26. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave To help company leaders get started with digital transformation in the industry, here are six instances of digitizing manufacturing: 1. Industrial IoT sensors : These gather data on manufacturing equipment for performance monitoring, measuring, and tracking industrial processes. Oxygen sensors gauge oxygen concentration, temperature sensors monitor temperature, and pressure sensors detect changes in atmospheric pressure.   For example, IoT improves supply chain transparency throughout. Businesses can have better control and visibility over the entire supply chain, from the manufacturing plant to the warehouse to the delivery trucks and the ?nal client, by embedding sensors into products or attaching tracking/monitoring devices to shipment containers. 1. Industrial IoT sensors : These gather data on manufacturing equipment for performance monitoring, measuring, and tracking industrial processes. Oxygen sensors gauge oxygen concentration, temperature sensors monitor temperature, and pressure sensors detect changes in atmospheric pressure.   2. Arti?cial intelligence (AI), automation, and machine learning (ML) : AI-driven digital technologies are transforming the manufacturing process into safer, more innovative, and more e?cient systems, potentially enhancing factory productivity by removing time-consuming manual tasks. These systems also enable accurate trend forecasting and tighter quality control while promoting accelerated production and reduced waste.   According to a report, by 2024, more than 60% of the Forbes Global 2000 (g2000) manufacturers will rely on AI mediums to drive digital transformation in the industry, resulting in improved productivity. For example, IoT improves supply chain transparency throughout. Businesses can have better control and visibility over the entire supply chain, from the manufacturing plant to the warehouse to the delivery trucks and the ?nal client, by embedding sensors into products or attaching tracking/monitoring devices to shipment containers. 3. Cloud-based ERP and other manufacturing software : A cloud-based enterprise resource planning (ERP) system can back up your company’s data to the cloud, making it accessible from anywhere. New ERP systems facilitate off-the-clock employee work, whether sharing ?les or completing tasks. ERP software hosted in the cloud is another option for handling stock, production, and customer relations. 4. Smart Manufacturing : Smart manufacturing using real-time data analysis can bene?t manufacturing operations, including production planning, quality assurance, and supply chain management. By integrating advanced technologies such as the industrial Internet of Things (IIoT), arti?cial intelligence (AI), machine learning (ML), big data analytics, cloud computing, etc., “smart” factories can optimize operations and increase production. The key bene?ts of smart manufacturing are: Quality improvement with less human interaction resulting in less human error https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 26/34

27. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave Reduction in Production Time Cost savings 5. 3D printing : This innovative manufacturing technology creates objects from digital data by laying down layers of material using lasers. Various industries use it to produce complete items or components for manufacturing new products. This digital transformation in manufacturing has the potential to revolutionize production methods.   Highly personalized products created by sports goods manufacturers can help athletes perform better while offering more comfort and protection. For instance, 3-D-printed customized helmets with lattice structures improve ventilation and impact absorption while being lighter. 6. Predictive maintenance : Factories can use predictive maintenance techniques to monitor machinery and tools for signs of wear and tear, and anticipate potential breakdowns, allowing for prompt repairs or replacements and preventing the problems from occurring.   Vibration analysis, oil analysis, thermal imaging, and equipment monitoring are examples of predictive maintenance applications. Challenges of Digital Transformation in Manufacturing Manufacturers must leverage the proper techniques when implementing new digital technologies to keep up with the quick pace of change and ensure business growth. Every stage of the digital transition in manufacturing presents challenges. Here are a few concerns: ● Investing in the right technology : Investing in appropriate technology from many available technologies is crucial for a manufacturing company’s success. It requires selecting the right-?t tools to scale and adapt to accommodate business growth. ● Effectively managing change : Since traditional industrial processes depend on human interaction and must become more adaptable to automation, it’s crucial to identify the company’s requirements for new systems before implementation to ensure desired results. ● Onboarding, training, and reskilling employees : Developing an implementation plan to train employees on new tools is a critical challenge in digital transformation for the manufacturing industry. This requires a tailored plan to reskill and upgrade employees, especially for new software or automation. Empowering team members with digital manufacturing processes maximize technology ROI. What’s the ROI of digital transformation? What is Digital Transformation? The transformation of traditional business operations through the integration of cutting-edge technologies such as Arti?cial Intelligence (AI), the Internet of Things (IoT), blockchain, and cloud https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 27/34

28. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave computing is known as digital transformation. This shift empowers organizations to seize new opportunities, reach broader audiences, and enhance the overall customer experience through more agile and responsive processes. Understanding the ROI of Digital Transformation ROI is a ?nancial metric to assess an investment’s pro?tability by comparing its net gain or loss to its original cost. This ratio is a percentage used to evaluate the performance of stocks, businesses, and real estate investments. ROI helps investors and business owners make informed decisions on resource allocation and assess the e?ciency and effectiveness of their assets.   Digital transformation solutions have the potential to enhance productivity, reduce costs, and boost customer satisfaction, ultimately leading to a higher ROI.   Using the standard ROI formula, one can determine the ROI of digital transformation. To accurately calculate its ROI, one must consider various costs associated with adopting a digital solution, such as initial investment, ongoing maintenance expenses, and staff training fees. Moreover, its bene?ts, such as increased revenue, reduced costs, and heightened customer satisfaction, must be considered.   Let’s examine a straightforward example of calculating the ROI of digital transformation in a large organization’s HR division. To increase operational effectiveness, they want to automate the vacation request procedure. Considering the time needed for an employee to submit a leave request through email, follow up with the HR department, and then accept the request, the manual procedure takes 75 employee hours per month. Employee time would be reduced to 15 hours per month if an e?cient and automated work?ow were used to handle each task, resulting in signi?cant cost savings for the company.   Although this modi?cation represents just one step in the organization’s digital transformation, it is measurable, obvious, and aligned with long-term objectives. Measuring ROI of Digital Transformation Measuring the ROI of digital transformation can be di?cult. It requires evaluating possible costs and bene?ts. Here are some steps organizations can follow to calculate the ROI of a digital transformation initiative: Identify the goals and objectives of the digital transformation initiative. It will help them determine the bene?ts they expect from the transformation. Estimate the costs of the digital technological initiative. This must include one-time fees (software licenses or hardware purchases) and ongoing expenses (maintenance and support). Forecast the bene?ts of the digital transformation initiative. This may include increased revenue, cost savings, e?ciency, or other improvements. Calculate the net present value (NPV) of the digital transformation initiative. This is the difference between the current value of the expected bene?ts and the present value of the costs, https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 28/34

29. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave considering the time value of money. Compare the NPV of the digital technological initiative to an alternative investment. This will help them determine whether or not the digital transformation initiative is a good investment. Monitor and track the performance of the digital transformation initiative over time. This will help organizations determine whether their initiative meets their expectations and whether the bene?ts materialize. Bene?ts of Knowing Your Digital Transformation ROI Knowing a digital transformation project’s return on investment (ROI) can be useful for various reasons. Below are some advantages of learning the ROI of a digital transformation project: It helps to – Determine the feasibility of the project Set realistic goals Justify the investment Allows for ongoing evaluation The return on investment (ROI) for digital transformation is contingent on the unique goals and objectives of the organization, as well as the scale and intricacy of its transformation initiatives. The organization must assess the abovementioned factors to achieve optimal value and success. Moreover, businesses must thoughtfully and continuously measure and re?ne their efforts. Does digital transformation ever end? Evolution of Digital Transformation Digital transformation evolution spans decades: 1950s – Invention of the microchip and semiconductor transistors  1970s – Introduction of home computers 1980s – Invention of the World Wide Web  1990s – Introduction of 2G network and digital cell phones 2000s – Widespread use of personal computers and the internet  2010s – Emergence of new technology and digital transformation has become a buzzword  https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 29/34

30. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave 2020s – People across industries aggressively invest efforts towards digitization and encourage digital programs to drive new business   Some interesting stats: According to the Gartner, Inc. Board of Directors Survey, 89% percent of board directors say digital business is now embedded in all business growth strategies. According to Fortune Business Insights, India, the global digital transformation market is projected to grow from $1.79 trillion in 2022 to $6.78 trillion by 2029.  Will digital transformation ever end? Digital transformation is a broad term that encompasses digitization and digitalization. The former refers to converting analog data sources into digital entities, and the latter relates to using those digital entities to improve business. Digital transformation means revamping your business using digital technology across all business functions. ● Need for digital transformation : The goals of digital & business transformation, in effect, are to adapt to market changes, provide value to customers, and boost revenue. Organizations must consider critical components like customers, workspace, infrastructure, and services to achieve these goals. Here are some reasons for the rise in digital transformation trends. Digital transformation gained prominence in the last decade. In 2020, the COVID-19 pandemic propelled its momentum, which resulted in a signi?cant shift in customer behavior from in- person to online transactions. This forced companies to embrace digital methods to conduct business. As more consumers prefer online shopping and services, digital payment channels have become more prevalent. The growing number of internet and smartphone users has skyrocketed the need for more digital platforms and products. Also, the remote work trend requires robust digital infrastructure to facilitate employee collaboration. This necessitates high-speed networks for seamless communication. The explosion of data from various sources requires considerable storage capacity and processing power, which digital transformation provides through e?cient data management solutions. ● Bene?ts of digital transformation : The goals of digital & business transformation, in effect, are to adapt to market changes, provide value to customers, and boost revenue. Organizations must https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 30/34

31. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave consider critical components like customers, workspace, infrastructure, and services to achieve these goals. Here are some reasons for the rise in digital transformation trends. 1. Cost reduction and pro?t increase : Cost reduction is the primary bene?t of digital transformation. By digitizing operations, businesses can improve their e?ciency and productivity, reduce overhead and production costs, and respond faster to changing market requirements. More productivity with less cost equates to an increase in pro?ts. 2. High quality with speed : By putting digital technologies and strategies in place, companies can deliver a quality product that will stand out in the market. Process automation helps to shorten the product lifecycle. Nowadays, teams adopt modern software development methodologies, such as DevOps and Agile, for rapid development and roll-out of new features and functions to sync with market needs. This enables organizations to release their products to market much faster; in other words, it accelerates speed-to-market. 3.Enriched customer experience : Digital transformation enhances the customer experience by improving customer service, which can set a company apart in the market. Utilizing customer data to understand preferences and complaints allows companies to make improvements and deliver greater value to customers quickly. Companies can provide 24/7 support through channels like chatbots, interactive voice response (IVR), emails, and video calls. 4.Improved collaboration : Connecting and collaborating with people across geographies is no longer a barrier due to the widespread use of mobile devices and apps. Engaging with customers, employees, and partners frequently is now easier. The modern means of digital communication help in frequent discussions, meetings, feedback gathering, and quick addressing of issues. 5.Data-Driven decision-making : Companies can collect and analyze data to derive actionable and revenue-generating insights with advanced digital technologies such as Arti?cial Intelligence (AI), Cloud computing, Machine Learning (ML), the Internet of Things (IoT), and Automation tools. Decision-makers can now make accurate and fast decisions based on data-driven facts. 6.Better resource management : The transformation of the paper-based record-keeping system into digital records is one of the most popular use cases of digital transformation. It offers businesses ease of record management, greater ?exibility, and scalability, saving time and cost towards storage. Likewise, digital transformation encompasses every area of a business. Rather than having scattered software and databases across departments, digital transformation can integrate applications, databases, and software into a central repository (like data warehouses and data lakes) that helps companies to eliminate siloed resources. Leading-edge data management tools and platforms can combine software, databases, and apps into a single repository for business intelligence. This is also known as (big) data management. Conclusion The human mind never settles on anything and discovers ways to make living and working easier and better. The miraculous journey of humankind from the stone age to the digital age proves that every https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 31/34

32. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave beginning has an end, but every ending triggers a new start. Likewise, today’s digital transformation era will reform into an even more advanced digital age with cutting-edge tech and science, and the cycle will continue with no de?ned endpoint. PREVIOUS POST Step Up Your Business Game: Embrace B2B Omnichannel Commerce Today! Search here.. RECENT POSTS Understanding Digital Transformation and Its Importance in Today’s Business Landscape Step Up Your Business Game: Embrace B2B Omnichannel Commerce Today! SAP Commerce Cloud 2211: The Ultimate Solution for Your E-commerce Success! Surviving the Storm: Overcoming Current Challenges in Fintech Product Companies Crafting Your Vision From Product Page to Purchase: Design Guide Part 2 CATEGORIES AMS Analytics Arti?cial Intelligence AWS Big Data Blockchain BPO https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 32/34

33. 6/5/23, 5:35 PM Understanding Digital Transformation and Its Importance in Today’s Business Landscape - Techwave Cloud Company Announcement CRM Digital Digital Transformation EIM EMI Engineering EPM ERP Events Featured Fintech IoT IT infrastructure SAP SAP AMS Validation ABOUT TECHWAVE Techwave is a leading global IT and engineering services and solutions company revolutionizing digital transformations. We believe in enabling clients to maximize the potential and achieve a greater market with a wide array of technology services, including, but not limited to, Enterprise Resource Planning, Application Development, Analytics, Digital, and the Internet of things (IoT).  https://techwave.net/understanding-digital-transformation-and-its-importance-in-todays-business-landscape/ 33/34

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