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What is digital transformation?

By Tiago Moraes 7 minutes reading
What is digital transformation?
What is Digital Transformation? It is an evolution that should also be applied to e-commerce.
What is Digital Transformation? It is an evolution that should also be applied to e-commerce.

What is Digital Transformation? Digital Transformation is the integration of modern digital technologies to a company or institution in order to optimize it, that is, to improve its performance as a whole.

Well, this is for all types of organizations, including e-commerce ones, as you can read later in this article.

In fact, Digital Transformation is a very important topic both for those who already have a company and for those who want to open one, whether wholesale or physical and online retail, or both.

Therefore, we have prepared this article, which contains the following topics:

Come calmly, and I'll show you the way.

WHAT IS DIGITAL?

In the field of computing, digital is what operates in two digits, 0 (zero) and 1 (one). That is, it is a binary system. It is different from what is called analog, which assumes multiple intermediate values.

As said, a digital system processes and stores binary information, which can be converted into texts, numbers, photos, videos, audios, colors, commands, etc., which, in turn, can be visualized on screens or trigger other systems. physical or virtual automatics.

Fundamentally, digital systems are less expensive and require less processing time than analog systems. Hence, the need for Digital Transformation.

Digitization of work processes and resources is essential
Digitization of work processes and resources is essential

WHAT IS DIGITAL TRANSFORMATION: A BRIEF HISTORY

Digital Transformation in companies, and also in government institutions, begins with the development of the first digital computers and also the first software in the 1940s, 1950s, 1960s and 1970s.

Since then, the need to digitize documents that were printed and stored in physical files became evident for the improvement of processes.

And that's exactly what most organizations have done.

Subsequently, with the evolution of software, hardware and communication technologies such as the internet, new opportunities for Digital Transformation emerged, which now involve all work processes within a company, from Marketing, through customer service, by the areas of IT, logistics and Accounting, among other sectors, to after-sales.

Everything now requires digital technology, preferably one that can be operated online from the great cloud of computers.

And the more “cutting edge” (newer and more refined) that technology is, the better.

Furthermore, just for the record, in 2018 in Brazil, approximately 30% of business owners said they had paid more attention to digital technologies in their corporations, according to a study conducted by the consulting firm Gartner . This represents a 12% increase compared to the previous year.

STEPS OF DIGITAL TRANSFORMATION

According to the North American entrepreneur, Peter Diamandis, digital innovations go through six stages, which I summarize in this way:

  1. Digitalisation : transformation of analog to digital data and processes;
  2. Disappointment: adaptation to newly installed digital technologies and processes;
  3. Disruption: first positive effects caused by digital innovations;
  4. Dematerialization: previous analogue solutions become obsolete;
  5. Demonetization: making products and services cheaper for the consumer;
  6. Democratization: popularization of products and services.

As can be seen, a company that goes through a process of Digital Transformation automatically starts to demand larger markets.

What is Digital Transformation? It is a six-step process aimed at the implementation and integration of digital technologies.
What is Digital Transformation? It is a six-step process aimed at the implementation and integration of digital technologies.

But not only that.

There are other advantages involved.

ADVANTAGES

Okay, now that we have an idea of ​​what Digital Transformation is, let's go a little further.

Anyway, let's see some of its benefits.

When it comes to a company like yours, Digital Transformation can offer advantages such as:

  • Faster execution of work processes
  • More process automation
  • More practicality to develop and optimize products and services
  • Reduction of process errors
  • Reduction of intermediaries in carrying out processes
  • Reducing ignorance
  • Greater empowerment of your company's employees
  • Greater development capacity
  • More practicality to serve customers
  • More practicality in dealing with your suppliers
  • More practicality in dealing with investors
  • More practicality for training and dealing with employees
  • More scalability
  • Greater integration of work teams
  • More creativity in problem solving
  • Less bureaucracy
  • Easier to measure performance in all sectors of the company
  • Fewer printed documents
  • Productivity increase
  • Easier to adapt to market demands
  • Easier to adapt to different economic scenarios
  • Time and money savings

There are, of course, situations that can be tough in a Digital Transformation, such as the need to invest in equipment, processes, training and technologies.

What is Digital Transformation? It is a process that, if well applied, undoubtedly allows a company to increase its creativity for innovation and problem solving.
What is Digital Transformation? It is a process that, if well applied, undoubtedly allows a company to increase its creativity for innovation and problem solving.

However, the benefits are much greater.

WHAT IS DIGITAL TRANSFORMATION IN E-COMMERCE

Digital Transformation can also be applied to e-commerce .

Despite operating on the internet through digital e-commerce platforms, a virtual store has an internal side, with different administrative sectors, such as Accounting, Law, Marketing, Human Resources and Logistics, for example.

  • Remember if: e-Plus Agency is a digital marketing agency and e-commerce that can help you in various Digital Transformation processes.

In addition, a company may have a physical store and other sales channels, in addition to the virtual store, that need and should be integrated in order to obtain a better management performance.

Digital Transformation in e-commerce makes it possible to integrate all these things.

For this, it is necessary to use hardware and also software such as:

  • Enterprise Resource Planning (ERP)
  • Customer Relationship Management (CRM)
  • Supply Chain Management (SCM)
  • Product Lifecycle Management (PLM)
  • Supplier relationship management (SRM)
  • Human Capital Management (HCM)
  • Warehouse management system (WMS)
  • Radio Frequency Identification (RFID)
  • Software and processes Digital Marketing Management

Finally, these are just a few systems that can be not only deployed, but integrated with each other and with your e-commerce platform/webshop.

HOW TO MAKE A DIGITAL TRANSFORMATION IN YOUR BUSINESS

To carry out Digital Transformation in your company, take into account the following factors:

  • Create a Digital Transformation Plan
  • Discover and test promising digital technologies
  • Choose and implement the most appropriate digital technologies
  • Train your employees in new technologies
  • Integrate new technologies with each other
  • Insert Digital Transformation into your Organizational culture (in the part that addresses the Values ​​of your company) and always innovate

Finally, it is important to say that Digital Transformation is not an option, but a survival factor for companies. Therefore, I recommend that you start thinking about it now.

Do you want to apply this?
In your operation?

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