Why Digital Transformation Statistics Matter
Today, transformation is an important area of business. Business is undergoing a drastic change with more people working from home and increasing competition in the market. To survive in this changing scenario, business is increasingly relying on information technology and is rapidly exploring ways to improve its performance. The integration of digital technologies into business processes has led to significant improvements in productivity, while reducing operating costs. For business managers, information technology transformation statistics are a valuable way to understand current trends and potential future directions for their business.
Business managers should be aware of key areas of business that are undergoing digital transformation. They must also develop strategies to deal with these changes. The emerging digital transformation statistics can help in identifying opportunities and threats, in assessing organizational performance, and in planning strategic actions. These statistics will aid in decision making, both by providing critical insight and helping managers to make informed decisions. This article provides an introduction to digital transformation statistics.
Digital transformation refers to the introduction of new digital information technologies into an existing system. One of the most common examples of digital information technology is the adoption of desktop software for document management. Desktop software is designed to efficiently manage the files on a computer by consolidating the files into a single, central “repository” and allowing users to make changes to the digital information that resides on the files. A similar example is digital telephone systems that allow users to exchange voice messages digitally. Digital systems also often include enhanced file sharing functionality to allow users to access information stored on the network much more easily. A related type of digital information technology is Wide Area Networks (WAN), which are used to connect two or more Local Area Networks (LANs).
Digital transformation also encompasses the movement of data from traditional sources to a new medium. Typically, when data is moved from traditional data collection methods to a new location, it is done so in a step-by-step fashion. The main challenge is improving the workflow associated with the process, which leads to improved production quality. Improved workflow can reduce both labor costs and potential downtime for the business.
Businesses also face a problem when they try to make long-term decisions based on old data. These decisions may not reflect the business’ needs in the future. It is also important for companies to be able to forecast their sales and expenses. The use of historical data or the snapshot approach does not provide this capability.
Digital transformation provides managers with the ability to test processes during the early stages of their development. This allows managers to evaluate the return on investment (ROI) of their business processes. Businesses can also determine which processes are more profitable than other processes during their early stage analysis. This ability also allows managers to pinpoint costly mistakes that they can then eliminate before they become costly liabilities for the business. By eliminating unnecessary steps, the risk of introducing undesirable processes and procedures is reduced, which also saves on cost.
Digital transformation also represents an important business intelligence tool. By viewing transformation metrics in a digital format, managers can make informed decisions about the running costs of their business. Changes in data can significantly impact ROI. A key performance indicator (KPI’s) can then be created using the metrics to show a business the effect of changes in data. Understanding transformation metrics can help managers align their business models with the changing world of data.
A digital transformation tool creates powerful business intelligence tools. They allow business owners and managers to make strategic decisions about their data and their businesses. Metrics are a critical component of any digital transformation effort. Without a well-defined framework and the accurate metrics to represent it, a digital transformation strategy can fail. Transformational change management requires both knowledge and skill.
Deepak Wadhwani has over 20 years experience in software/wireless technologies. He has worked with Fortune 500 companies including Intuit, ESRI, Qualcomm, Sprint, Verizon, Vodafone, Nortel, Microsoft and Oracle in over 60 countries. Deepak has worked on Internet marketing projects in San Diego, Los Angeles, Orange Country, Denver, Nashville, Kansas City, New York, San Francisco and Huntsville. Deepak has been a founder of technology Startups for one of the first Cityguides, yellow pages online and web based enterprise solutions. He is an internet marketing and technology expert & co-founder for a San Diego Internet marketing company.