Key Strategy or Just a Marketing Buzzword?
Digital transformation means converting analog and manual processes into their digital counterparts. It is a complex change that affects various aspects of an organization’s operations: from physical activities and cognitive processes to internal culture. This process requires careful preparation; it is neither simple nor quick, making it a challenge for many companies.
Market analyses indicate that as many as 78% of enterprises in Poland do not have a formal document related to digital transformation. They lack both process maps and digitalization strategies. Poland ranks among the lowest in Europe in terms of digitalization, with a decline from 4.8 to 4.4 on a ten-point scale. This means that competitive pressure on Polish companies is increasing.
The Benefits of Digitalization
Automation of processes and implementation of digital tools can significantly increase operational efficiency. ERP and BPM systems help streamline business processes, making operations faster and more efficient.
Converting processes to the digital space allows for better data collection on customers, analysis of that data, and its use for service personalization. In this way, companies can more effectively meet the needs and expectations of their customers, thereby increasing satisfaction and loyalty.
Digitalization enables companies to more easily reach new markets and customers through the Internet and digital platforms. This opens up opportunities to expand their business on a global scale, often without the need to invest in traditional distribution channels.
Thanks to access to advanced analytical and technological tools, companies can accelerate the process of creating and implementing new products and services. Digital transformation fosters creativity and innovation, which help maintain a competitive edge.
Fot. Weronika Dyląg
Digital solutions can significantly improve data and IT infrastructure security management. Appropriate digital tools help monitor, detect, and respond to potential security threats more effectively than traditional methods.
In a world where changes occur very rapidly, the ability to quickly adapt to new market conditions is crucial. Digital transformation enables companies to continuously track market trends and flexibly adjust to them.
In the long term, digital transformation can contribute to reducing operational costs through automation, better resource management, and process optimization.
In summary, digital transformation is not only a means to increase efficiency but also a strategy that enables companies to innovate, manage risks better, and adopt a more strategic approach to customer service and business development.
How to Take the First Steps Towards Digital Transformation?
1. Understand Your Organization | Diagnostic Phase:
Sometimes, at first glance, it may seem that digital transformation does not apply to our organization, especially if the business is traditional, such as industrial manufacturing. However, the first impression is usually misleading. Processes like land classification can be effectively automated using computer technology and satellite images. It's worth taking a very close look at the supply chain, business processes, and quality control processes. Many of these can undoubtedly be optimized through digitalization.
2. Inventory Your Processes | Diagnostic Phase:
Process inventory allows you to understand the interdependencies within the organization and identify potential bottlenecks, which are areas prone to human or procedural errors. Precisely defining and mapping these areas enables decision-making based on solid data and planning the optimization and digitalization of selected processes. You can inventory processes yourself or with the help of our business analysts, using techniques such as event storming.
3. Prepare a Strategy | Planning Phase:
After thoroughly understanding the state of the organization, it's time to define the goals and vision for digital transformation. These goals should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound). Next, a detailed action plan must be developed, including the selection of technologies, resources, and partners necessary for implementing the transformation. This is a crucial moment for every CTO, requiring full commitment.
4. Implementation and Monitoring:
The implementation phase, where new technologies and processes are introduced, often in stages to minimize operational disruptions. The main challenges include costs and employee resistance, often due to fear of job loss resulting from automation. Acclimating employees to new tools is therefore as important as the investment in technology itself. Monitoring progress and flexibly adjusting the strategy is an ongoing process that ensures the maximization of benefits from digital transformation and continuous improvement of the organization.
In summary, digital transformation is not just a means to increase efficiency, but also a strategy that enables companies to innovate, manage risks better, and adopt a more strategic approach to customer service and business development. It is worth preparing for it thoroughly!