Currently, the economy and the job market are undergoing a true revolution, driven by digital transformation. More and more companies are realizing the need to adapt to this new reality to remain competitive.
Understand what Digital Transformation is
Because it's a relatively new topic, understanding what digital transformation means in companies can be a bit confusing.
It is nothing more than a transition process, where companies study and incorporate new technologies to transform their businesses and increase the dynamism of their markets.
A common example in our daily lives are banking apps that allow us to perform transactions directly from our cell phone screen.
Digital transformation is more about mindset than a specific task.
We can also mention Google Hangouts, an instant messaging and video chat platform developed by Google in 2013, which even makes international calls for free.
Therefore, we can conclude that the implementation of Digital Transformation generates benefits not only for organizations, but also for employees and society as a whole.
It should be implemented as quickly as possible, regardless of the size or segment of your company. This is because it's an investment that takes time and involves not only technology, but also changes in thinking and mindset.
It's not an easy task, but it's definitely worth it.
Understand the difference between Digital Transformation and Digitization
This is the case of Apple, Microsoft, Amazon and Facebook, considered four of the world's great powers. And, outside the USA, occupying seventh position, we find the giant Alibaba Group, in the e-commerce sector.
Is Digital Transformation in companies an option or a matter of survival?
With so many benefits for companies, employees, and society in general, digital transformation in businesses is here to stay.
Below, you can find everything your business can achieve through Digital Transformation:
Benefits of Digital Transformation for your business
Companies from all segments can benefit when they focus on digital mobility as a way to increase sales, build customer loyalty and increase employee satisfaction.
So, let's see, below, the most important reflections of TD:
Expansion of the business model
Many companies are able to expand their business model through the digital revolution. A good example is e-commerce, where stores can, in addition to their physical address, also have a virtual address to sell their products.
The omnichannel strategy , as a way to make the shopping experience more flexible, is here to stay. And it's not only in terms of convenience that e-commerce excels.
Through it, it is also possible to offer more payment options, where companies offer the possibility of paying in installments via credit card or even the use of bitcoins. By breaking down these barriers, your business will reach a larger and more qualified audience.
Process automation
Machine learning is one of the greatest achievements of technological advancement. Through process automation , responsibility for a service is transferred from an employee to a machine.
This action reduces the chance of human error and allows employees to focus on more strategic activities.
Flexibilidade e mobilidade
Let's begin by analyzing how applying digital transformation in companies can change the way their employees work, guarantee a better quality of life for them, and greater savings for the company. In this sense, the greatest impact the Internet has brought is the shift towards knowledge-based work. That is, the digital economy is not based on physical strength, but on brainpower and learning. Therefore, the biggest trend is working from home and online professional development courses.
The professional, even if linked to a company, works from home and, according to a survey carried out by the company SAP, Brazil has more than 20 million home workers. Many activities that previously could only be carried out in the workplace can now be carried out from anywhere.
From the companies' point of view, the advantage of this type of work is the savings with transportation vouchers and food vouchers, for example. Furthermore, the company also saves costs related to infrastructure. Without the need to have an office to allocate employees, the entrepreneur saves on water, electricity and equipment.
From the employee's perspective, they tend to feel more valued when the company believes in their intellectual potential, which significantly reflects on their productivity. The biggest benefit, however, is the improvement in your quality of life, as you will not have to deal with traffic problems and traffic jams and you will have more time to take care of yourself and carry out other activities.
increase in revenue
We have already seen above a good example of saving resources and, consequently, increasing revenue. But, in addition, we can give another example, which is investing in a good online FAQ. This reduces the need to hire employees for the SAC.
These measures will, without a doubt, improve your company's customer support image, generate more sales and significantly increase profits. If you want to have other ideas, there is nothing better than hiring specialized consultancies and, in this, the Bytebio can help you.
More effective internal communication
We don't have to go far to understand how digital transformation in companies has improved the internal communication of a company's employees. Want a very common example?
What would we do without an internal communicator, like the one in Bitrix24, in companies? Or even without email? A company with mindset aligned with Digital Transformation, it saves effort, resources and has a much more fluid process, reflected in the product delivered to the customer.
Competitiveness with large companies
Anyone who owns a small company and has not yet gained a good share of customers in the market can count on the help of tools to change this reality. Digital Marketing came to revolutionize the way companies interact with their customers and potential buyers.
In addition to them, other Big Data tools and data analysis such as Bitrix24 PowerData exists to improve processes and results.
Increased customer satisfaction
Nowadays, customers no longer consider the quality of a product as the main differentiator. As shocking as it may seem, this represents an obligation to the company for them.
On the other hand, in the midst of the Customer Era, they value interactions, the way they are treated, and the experience of their journey as a whole.
Offer better experiences through an optimized CRM system, as is the case with Bitrix24, for example, is the most visible aspect achieved by TD.
This will build consumer loyalty and help your company build great brand value.
The current digital landscape
The current scenario has some very peculiar characteristics, which must be taken into consideration:
- There are more connections between cell phones than between people in the world;
- Nowadays, more people have access to a cell phone than have access to a bathroom.
This can be proven, for example, if we analyze the Siberian region, in Russia. It is a place considered "almost the end of the world", where the population is nomadic and lives in precarious sanitation conditions.
However, in 2018, during the World Cup in Russia, a news report showed residents having access to connected cell phones and computers. This demonstrates how essential it is to have a strategy aligned with a Digital Transformation mindset .
Panorama of Digital Transformation around the world
A study carried out jointly by the Fletcher School, Mastercard and Harvard Business Review (HBR) mapped the Digital Transformation scenario around the world based on around 60 countries.
Among the questions that served as the basis for the research were:
- What are TD standards around the world? What factors explain these patterns and how do they vary from region to region?
- Which countries can be considered the most digitally competitive? Are the main drivers of competition part of the public sector or the private sector?
- How do countries accelerate their growth in the digital area?
The chart below was then created, divided into four zones: Stand Out Zone, Stall Out Zone, Break Out Zone, and Watch Out Zone.
This is perhaps the first model that comes to people's minds when we talk about The Highlight Zone countries stand out in the era of Digital Transformation and are in a period of full productivity.
They are leaders in innovation and, consequently, face the great challenge of maintaining this prominent position for years to come. Otherwise, they will fall into their comfort zone and join the next group we will see, the Stagnation Zone.
Among the countries in the Stagnation Zone we can highlight Norway, Sweden, Switzerland, Denmark and Finland.
These nations have a high degree of digital advancement, but are not at their full productive capacity.
The digital advancement of countries in this area has undergone disorderly growth and, currently, their biggest challenge is to reinvent themselves.
The countries that are part of the Takeoff Zone are led by Bolivia and Kenya and have low scores in terms of digital transformation. However, they are already chasing development.
These countries, at the moment, have an underdeveloped infrastructure and little qualified labor.
However, it is clear that, with a financial injection, they tend to develop quickly.
They are, therefore, very attractive for new investors, and could occupy the position, in the near future, of the countries in the Highlight Zone.
The countries in the Alert Zone face many challenges when it comes to Digital Transformation in companies and are falling further and further behind, due to a lack of incentive in this area.
The population of most of these countries does not even have a cell phone connected to the Internet.
Based on this study, we conclude that there is a fine line between opportunities and risks in Digital Transformation, and that some notable factors can be highlighted:
- Three of the world's most important economies—the US, Germany, and Japan—are threatened with falling out of the Prominence Zone and into the Stagnation Zone. Therefore, it is essential that they recognize the current situation and look more carefully at digital development.
- The region with the greatest potential for digital development is Asia, with China and Malaysia standing out.
- Business leaders from South American countries should unite to learn some lessons together from countries like Colombia and Bolivia, which are developing rapidly.
Data on Digital Transformation in Brazil
Based on the graph above, we can see that the situation in Brazil is far from favorable and that, despite the digital economy accounting for 22,5% of Brazil's GDP in 2016, many measures need to be taken.
Firstly, we must recognize that public policies are essential for success towards a digital country. The best example of this are countries that are part of the European Union, which occupy a prominent position because they have greater incentives from the Government.
In this sense, in 2017, the Ministry of Science, Technology, Innovations and Communications (MCTIC) took the first step. He launched the Strategy for E-digital, a program that aims to encourage the use of new technologies in various sectors of the economy.
Other ideas that can be adopted are measures to reduce social inequality, public-private partnerships in the digital innovation sector and investment in education and retraining of workers.
In parallel, we need the support of the private sector and digital entrepreneurs . They can make more investments in the area and allocate limited resources intelligently.
Therefore, we are going to show you a success story to inspire you on this journey of digital transformation in companies. We will see?
Digital Transformation Success Case: Unicred
With Unicred's Digital Transformation , almost everything can be resolved online.
Thanks to Big Data, Data Analysis, Internet of Things, Artificial Intelligence technologies, among others, there is no longer a need to go to a bank branch or business unit.
According to Fernando Fagundes, CEO of Unicred do Brasil:
It's possible to solve almost everything in the palm of your hand, through a smartphone. Besides seeking effective ways to acquire new clients, we need, above all, to strengthen ties with our current members, and the mobile world greatly assists in this mission.
Through the Unicred app, members can pay their bills conveniently by typing or using their cell phone camera as a PDF reader. Furthermore, you can check balances, transactions and statements, make transfers and analyze all your investments.
And, for those who are not yet members, the Unicred Associe-se app was created. It does all the work in a simplified and quick way, saving the customer time as they do not need to travel to a business unit.
According to Febraban's 2017 Banking Technology Survey, carried out by Deloitte, mobile banking has already surpassed internet banking and accounted for 34% of banking transactions.
This only proves the importance of Digital Transformation in companies and the need for investments in technology and information security.
And for those who think that TD is only possible for huge companies with large investors, we wrote a complete article on how digital transformation can also help small companies and startups, as is the case with fintech Nubank.
The bank, which is 100% digital, is proof that, with innovative ideas, anyone can apply digital transformation to their business and take a giant leap forward compared to the competition.
Signing Off
This was a comprehensive text that focused on showing what Digital Transformation is and the benefits a company will gain by employing it. It was possible to note that industry and commerce, in whatever their sector, have always kept pace with the evolution of society.
Given this, we analyzed the situation of the digital era in the world and in our country. We show that Brazil is taking very short steps and that a businessman who wants to stand out nationally can explore this issue.
Therefore, the tip is that great entrepreneurs will drive the economy in the future. To achieve this, it is essential that they develop strategies focusing on digital trends to increase the return on sales and constant profits.
Want to know how Bytebio Can it help employ digital transformation in companies and boost their business?
So, do as many other clients we have served throughout our years of operation have done, and contact with us to learn about tools like Bitrix24 and our specialized consultancies.
Want to implement digital transformation in your company? Talk to us.
