Digital transformation has become an indispensable concept for every business in recent times. So what is digital transformation? And how important digital transformation is that business owners talk about a lot. So let’s check the answer in this article!
1. What is digital transformation
1.1 Digital transformtion
Digital transformation is the innovation in business through changing the traditional business model to a digital one. Digital transformation can apply new technologies such as cloud computing (Cloud), big data (Big data), Internet of things (IOT), and so on. This has a positive role for businesses in bringing about an efficient workflow and promoting revenue growth and brand.
Besides, digital transformation is not simply changing the way of doing work from the traditional manual to applying technology to reduce human effort. They play the role of evolving business thinking, operating methods, and organizational culture,….
1.2 Current digital transformation application fields
Currently, digital transformation is being applied in many fields. There are two main fields: goverment agencies and private enterprises.
Digital transformation in goverment agencies
Digital transformation can be easily realized when implementing countries’ increasingly advanced administrative procedures. With the policy of developing e-government, State employees can easily manage people’s information. At the same time, this also minimizes excess time from outdated administrative procedures.
Digital transformation in private enterprises.
Using task management applications such as ClickUp, Trello, and others to save data in the cloud,… These are characteristics of a company applying the digital transformation. This business transformation will aid in the optimization of time and money when managing projects, controlling work progress and assisting firms in developing and creating competitive advantages.
2. Importance of digital transformation in business
2.1 Change thinking about management & organizational culture
Digital transformation will help increase connectivity between functional departments within the company. Departments with related tasks and goals can easily capture information on the standard system. This helps increase transparency in the business and optimize the work schedule of all organisation members.
2.2 Provide information and data quickly
When businesses perform the digital transformation, information and data are uploaded to the organization’s standard data system. As a result, management levels can monitor and update info quickly for timely handling.
At the same time, you can make highly accurate decisions for your organization. Especially in a volatile time like the Covid epidemic, this transformation will help businesses manage work remotely without being present at the company (Work from home).
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2.3 Reduce operating costs
When implementing digital transformation, many jobs in the traditional model will be replaced by technology. For example, the data information will be uploaded to the computer system, reducing the amount of paper for printing. The company will save a cost on this operation. Or some other job will no longer be relevant in digital transformation. For example, the company will not need many clerical assistants to organize papers because there is management software to support it.
The trend of digital transformation is taking place every day, every hour around the world to develop business and bring good quality services and products to users. Hope the article has helped you answer the question: what is digital transformation and the importance of digital transformation in the 4.0 revolution.
Furthermore, digital transformation delivers numerous other benefits, such as increased employee productivity. These advantages significantly contribute to continuous business because automation helps individuals shift into more creative and higher-value work, and more agility enables firms to define better opportunities and pivot resources to grab them.
2.4 Increase the competitiveness of the business
Currently, digital transformation is not an option, it has become compulsory for every business. Digital transformation is a task for companies in the technology revolution. In fact, another study in the USA showed that 93% of businesses confirmed digital transformation as a necessary job in their development.
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