The Four Forces of Digital Transformation
It’s become a cliché, but digital transformation is a reality. It’s not just that every company needs to be digitally enabled; it’s increasingly apparent that every company needs to be a technology company. The question is, how do you transform? In this article, we’ll look at the four forces of digital transformation.
Digitization
Digital transformation is the process of transforming the business and its processes to take advantage of software, automation, and data analytics. It’s a change in the way business is done.
The first force that drives digital transformation is digitization–the ability to create value from data through automation and software. Digitization enables companies to collect information from customers or other sources like sensors or drones, store it as data sets in databases (structured or unstructured), analyze those sets using advanced algorithms and machine learning techniques like neural networks or deep learning algorithms (or even just plain old regression analysis), then use what they learn about customers’ needs so they can provide better products/services at lower cost than competitors who don’t have access to this kind of information.
Automation
Automation is the use of software to automate tasks. It can be used to reduce costs and increase efficiency, improve quality and accuracy, or improve customer service.
Automation is a force because it helps you achieve your goals faster than manual processes would allow. For example:
- Automated testing allows you to test more frequently with higher confidence in your results because the tests are automated by computers instead of humans