Published on 05/27/2021. Translated by Reinaldo Zaruvni.

Technology has advanced a lot, and it led businesses productivity, and profitability to take on new parameters, challenges, and developing ways. Companies must change their mindsets and their organizational cultures to reach positive results related to the two mentioned fields, actions which go far beyond adaptation of resources, far beyond digitalization. This is Digital Transformation.

However, do deep changes must necessarily be linked to the development of customized digital products? Besides, are Digital Transformation, and digitalization synonyms? We will make it clear through this content.

Here, you will find answers for the following questions:

• What is Digital Transformation? What are its types?

• What is the importance of digitalization of business?

• How to apply digitalization of business to your company?

• Does Digital Transformation depend on digital products?

Let us start!

What is Digital Transformation? What are its types?

Digital Transformation is the process by which a certain company defines technology as a business key structure to improve its results, therefore a strategic, deep, and continuous action. It goes far beyond the adaptation of a single department, the acquisition of new technological tools, and the processes digitalization.

Improvement of performance, results, organizational culture, and customer satisfaction can be achieved when a company digitally transforms itself. Technology becomes just a part of it.

Digital Transformation types

Every Digital Transformation is deep, and strategic, but there are many ways of changing an organizational culture through technology. Here, we present you two of them.

Processes transformation

One of the paths to a company update goes through internal processes innovation. This is not a simple task, and it cannot be accomplished by a single department. All the departments must, in an analytical manner, identify improvement spots, and the most modern, and technological solutions to each step of each process.

This kind of transformation starts with a thorough diagnosis from the choice of new resources until their deployment. Benchmarking your business with other ones which have already changed helps you a lot to go faster through it while achieving better results.

Business model transformation

Another option to boost a business with Digital Transformation is to invest in changing the business model, in structurally changing the company, in implementing new technologies to create a scalable and accelerated expansion model.

Startups are good examples of companies which were born with a Digital Transformation DNA, but other ones, already established in the market (and which did not start their journeys this way) can also invest in operational models’ innovation.

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Digital Transformation vs. Digitalization of business

There is some confusion around “Digital Transformation”, and “digitalization of business” concepts, especially between those who are now entering into the innovation universe. It may seem like both are synonyms, or that they refer to the same process.

Actually, digitalization is a part of Digital Transformation. In many cases, the first step of it.

What is digitalization of business?

Digitalization of business concepts is related to the movement of turning processes into digital ones, which implies taking content, day-to-day practices, and technologies to digital environments. It is also constant and requires periodic reviews of tools and methods. With it, companies always seek improvements.

Why does it matter to organizations?

Digital Transformation is totally linked to digitalized businesses, however it goes beyond digitalization, since insights provided by it allows changing every aspect of a company. If one intends to digitally transform, his or her business must necessarily face digitalization.

More than just a first step to such a structural, and strategic change, digitalization of business alone brings many benefits, like costs reduction, more stability concerning industry environment, sustainable and long-term growth, and the possibility of scaling up operations, as well of building a production base and a database that can be accessed and improved from anywhere, anytime.

How to digitalize your business?

An analysis of corporate processes, and of patterns of a company is the kickoff for turning businesses into digital ones. After mapping all actions of every department, it gets easier to understand updates needs, and improvement opportunities (even those related to processes which already make use of technology).

Digitalizing businesses does not mean just implementing new technologies. It means also making use of the right ones, the ones which will deliver better results according to what each company needs. Not every technological solution delivers what is needed, and it is very common to find organizations investing a lot in ineffective resources.

Then comes to the step of choosing, and implementing new tools, and they can be off-the-shelf software (standardized software applications that are mass-produced, available to the general public, and fit for immediate use), or customized ones (from the moment of conception, the ones developed, created, and designed to meet the objectives, reality, and needs of each business).

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Does Digital Transformation depend on digital products?

Of course, creating a digital product, customized according to your business needs, is a big leap inside the market you are in. However, a step like this depends on some factors. For example: company’s current situation, pain points to get solved, available resources, goal, and level of digital maturity.

It is important to keep in mind that off-the-shelf solutions may solve some problems, even though those who will make use of them must learn and understand how to do it. In other cases, pre-made tools which provide customizable modules, and processes are the best choice for an organization.

However, totally customized digital products are the only ones which help a company to overcome some issues. That is because they cover specific gaps of specific needs, and the software market does not offer any resource capable of addressing them. Besides, at some point, its owner may provide it to their customers or even sell it as desired.

If we take all these possibilities into account, diagnosis, and analysis of a business needs become even more crucial. If you do not want to see your company to be left in the dust and wish to improve its competitiveness by meeting the needs of our highly digitized world, start investing in innovation! Being part of this environment will allow you to boost opportunities and to transform your results.

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