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In this article; we will answer questions such as; What is digital transformation? How digital transformation concept started? Why is digital transformation so important? At the same time, we will talk about the companies that have successfully implemented digital transformation, also goals of digital transformation, the benefits of digital transformation, and digital transformation tools.
What is digital transformation?
Digital transformation is a rapidly developing concept with the development of technology and the introduction of the internet into our daily lives. In short, it is the sum of the technological changes for individuals and companies. We started to reflect these changes into our private lives or business life to adapt to new processes brought by the developing technology.
Digital transformation, which is now one of the most important agendas of companies, has revealed many new terms. Concepts such as artificial intelligence, business intelligence, machine learning, robot, big data, innovation, e-commerce, e-government, e-invoice, e-signature, e-delivery note, which we frequently use today, started to mean something very recently. Today, senior executives who are not familiar with these concepts should forget about dreaming of being rich or bright career path J
According to Gartner research - includes technology predictions of 2021-2025 – at least 25% of CIOs (Chief Information Officer) will replace the COOs (Chief Operations Directors) in 2024. This shows that senior executives who do not follow information technology concepts and who are far from digital transformation will be easily replaced.
In order to be able to define digital transformation, it is necessary to go back to the first times of the internet by rewinding the movie. In the 1980s, - the first emergence of the internet – it started with the efforts of the American, British and French governments to establish a network connection between computers. Internet began to be used as we know it today, dates back to the mid-1980s. Later, internet access to our homes for individual use started with private internet service providers.
Although it sounds very interesting today, the internet connection was in the form of a dial-up phone connection. I am sure even while reading this article, many of you started to hear that connection voice coming from the early 2000s J
Internet was the first step of digital transformation. The development of computer technologies has increased the importance of the internet & computers in the way of businesses. Transformation entered our lives and our pockets through mobile phones 20 years ago. Now reached the ability of many devices to communicate with each other.
Keeping up with these changes and using new technologies in business activities has recently begun to be expressed with the concepts of Industry 4.0 and digital transformation.
Why is digital transformation so important?
To answer this question, it is enough to read the statements at the beginning of the article. Rapidly developing technology has transformed all business models in a destructive way. Many concepts that the previous generation said “will never change” are now out of our lives. If even big and well-established companies want to survive today, they have to adapt to technological developments by redesigning all their business processes and implement digital transformation as soon as possible. The future is dark for companies that resist this technological change.
For example, - today no matter how great retail giants you are - to survive just by selling products from the store is impossible. All major retail brands have launched their own e-commerce sites. In addition to this, they also have to reach their customers with the market places in popular private e-com sites such as amazon.
In short, companies that resist digital transformation need to make sure that they risk their own future.
What are the goals of digital transformation? Where to start digital transformation?
We are sure that you have frequently heard about technological developments, Industry 4.0, information technology, mobile application, artificial intelligence, business intelligence, machine learning, robot, big data, innovation, e-commerce, and many similar concepts in the recent past.
We can clearly see that many company executives we interviewed focus on this issue seriously such as “We started the digital transformation, we invest in technology, we have a mobile application, etc.” We can also say that the increasing number of such discourses is very pleasing for the information technology ecosystem and the future of the country.
However, digital transformation should be set up separately for each company and different objectives should be approached with different technology strategies. For example, a successful transformation project for company A may not produce the desired results for company B. Or, the mobile application solution planned for a retail-oriented company may not be OK with the activities of wholesale companies.
This is exactly why, when determining digital transformation goals, a master plan should be made within the framework of a vision that covers a wide spectrum from business owners to senior managers. Basic variables such as the company's needs, the point it aims to reach, its technological infrastructure, and the budget it plans to spend are the determinants of the success of the digital transformation project.
If we want to define the successful digital transformation project shortly, we would say that "Projects that aim to make a difference against their competitors by producing innovative solutions to company needs. The project should be defined by analyzing accurately and in detail, focusing on returning the investment, and creating value-added services.
The most important point to be expressed exactly at this point; Companies need a reliable and expert technology solution partner to realize their dream vision. The power of your technology development partner, software development team, management staff, and cross-sector experienced consultants are very important variables that make a difference in your digital transformation journey
What are the tools of digital transformation?
If you follow business magazines or read technological articles, you may have heard many of the concepts mentioned below; business intelligence (BI), artificial intelligence (AI), machine learning (ML), virtual reality (VR), robotic process automation (RPA) big data, mobile application development, platform development, etc.
The most fundamental thing in all these concepts is data or as today's popular definition is big data. Now, besides the financial strength of the companies, the power of the data they have is one of the variables that make the difference. You've heard the news a lot too often like hackers sneaked into company X and gotten all their data or countries paid millions of dollars for y data etc.
Data management has just started to gain more importance on the agenda of companies. The critical issue here is not to have a lot of data, but how you collect that data, where you keep it, how you process it, and how you integrate it into your activities.
The benefits of digital transformation are really too many. It would not be wrong to define exactly in this way. We will explain the benefits in more detail within another article. Shortly we can say that digital transformation extends the life of your business.
What are the common features of companies that have successfully implemented digital transformation?
The companies' perspective on change is actually parallel to the answer to this question. As Seth Godin said, "There are a lot of striking ideas, what is missing is the desire to realize them." The desire for this issue lies at the heart of digital transformation. The most fundamental characteristic of companies that have achieved this is their passion for change.
The second biggest concept is talented human resources. It is not enough that only a top manager or boss in the company wants digital transformation. The vision put forward must be supported by a skilled and willing workforce that can realize this. That's why all companies that have succeeded in their digital transformation journey have employed very talented people.
Being fast and being active in reacting is another common feature. Digital transformation is not a concept planned once and done. It needs to be improved by constantly renewing itself with the development of technology. At this point, it is very important for companies to get fast reactions.
Fourth but not least a customer-oriented approach. On the basis of successful digital transformation philosophies, the customer is in the center. Although it may seem like a transformation inside the company while determining the goals, all this digital transformation is actually to reach the end-user in an optimum way and to gain loyal customers.
Remember that in today's business environment where competition is very intense, your competitors will not wait for you to act on this road by laying the red carpet in your way.
Unfortunately, every day you do not take action on digital transformation will take you one step back from the competition. You should also take into account the fact that your competitors who advance with the right strategy can accelerate on a logarithmic scale.
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