Perhaps one of the most used terms in conversations about technology in recent years is digital transformation.
Digital transformation, which is sometimes confused with digitization or digitization, enables us to lay the foundations of the world of the future today.
Thanks to the digital transformation, which is predicted to change not only the future of technology companies but also the lives of everyone, all behaviors of people regarding working, living and entertaining reach a different dimension.
Moreover, this transformation is happening at an incredible speed. While we are still trying to understand what digital transformation is, innovative technology elements that support digital transformation are entering our lives every day. So what is this digital transformation?
Much More Than Digitization
Digitizing data means converting analog or manually stored information into digital. The concept of digitalization refers to the process of applying the work done so far in daily life with digital technologies, and therefore the basis of digital transformation.
Digital transformation covers the process of adopting and transforming innovative technology and digital tools in processes including supply chain, operations, ERP (enterprise resource planning), customer services and many more.
Essentially, digital transformation connects objects, spaces and employees and ensures that all other elements involved in the process produce better results.
The history of digital transformation begins with the transformation of archives consisting of handwritten data into more analyzable, processable and shareable digital data.
With the inclusion of the Internet in business and daily life, data sets have reached unmanageable sizes and this brings with it the need for larger data management and analysis processes.
At this point of need, digital transformation continues its journey, which we do not yet know how far it will go, around three basic elements: physical, cognitive and cultural.
Examples of physical transformation include the transition of work from manual to digital, artificial intelligence, robotics and machine learning applications.
Digital transformation, which is a cognitive process, also changes the roles of analysts and data scientists with advanced data analysis options.
The cultural dimension of digital transformation consists of the elements of employees working together with smart machines, valuing the transformation, and being competent to carry out the transformation in question.
Examples of the Effects of Digital Transformation
Business processes: Digitalization of traditional processes increases efficiency and reduces errors. For example, moving paper-based business processes to digital platforms makes data sharing easier.
Business models: Digital technologies contribute to the transformation of business models. Thanks to digital transformation, a retail business that uses online sales channels as well as physical stores can reach new customers and increase its revenue.
Products and services: Digital transformation enables the digitalization of products and services and the emergence of innovative solutions. For example, a publishing house that offers digital books as an alternative to traditional books may appeal to a new market segment.
Customer experience: Digital technologies aim to provide customers with more personalized experiences. For example, making recommendations based on users’ preferences on an e-commerce platform can increase customer satisfaction.
Workforce and work culture: Digital transformation requires developing employees’ skills and adopting new ways of working in the workplace. Practices such as teamwork, flexible working hours and remote working can lead to changes in work culture.
Advantages of Digital Transformation
- Increased operational efficiency
- Reduction in operating expenses
- Elimination of errors caused by human errors
- Ensuring a high level of operational sustainability
- Consistency in business model
- instant analysis
- Automation
- Artificial intelligence support is among the advantages of digital transformation that can be counted at once.
Digital transformation, which shapes the future of both the business world and human life, from production to retail, from healthcare to smart cities, is expected to pave the way for new trends in the coming years.
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