Digital transformation What you need to know

What does digital transformation mean?

Digital transformation is a fundamental shift in the economy and society towards digital solutions. In terms of companies, digital transformation means that more and more processes and business models are being changed or newly developed through digital technologies. Digital transformation is often used synonymously with digitalization, but this is not entirely true. Digitalization refers to the conversion of analog data and processes into digital formats. If you no longer write a letter, but an e-mail, if a form is no longer printed, but filled out electronically and if documents are stored digitally – then you speak of digitalization.
 
The digital transformation goes much further. Here, comprehensive digital solutions for new and old challenges are sought. For example, when the telephone customer service is replaced by an AI-supported chat system, when corporate divisions are networked with each other through innovative software solutions or when new digital business models such as online shops, apps, streaming services or cloud computing emerge – then we speak of a digital transformation. Smart devices (“Internet of Things”), blockchain technologies, artificial intelligence and robotics are also important developments in the field of digital transformation.
A company whose business model is based on digital technologies is called a “digital business”.
 

What are the challenges of digital transformation?

A company that wants to successfully assert itself in the market today is well advised to rely on new digital technologies. But that is easier said than done. Because: The variety of options can be confusing.
 
If you want to launch an app, you have to decide, for example, whether it should be a native app, a hybrid app or a progressive web app. If you want to manage a website, you have the choice between numerous content management systems. And there are so many different tools available for automating business processes that it’s hard to decide on one.
 
Como As a full-service digital agency, we are personally familiar with these challenges and help you to make the decisions that are right for you 🙂 digital estamos familiarizados con estos desafíos y estamos encantados de ayudarle a tomar las decisiones correctas para su empresa:-)
 
In addition, customers’ expectations are increasing. Customers want digital and mobile solutions. Nobody wants to be on hold, everything should be done quickly and as intuitively as possible with the smartphone. A winning user experience is becoming increasingly important.
 
Digital transformation is, therefore, also changing the process of product development. Instead of tinkering for months and then bringing a finished product to the market, agile and iterative processes are required today, in which products are created quickly and in close exchange with users – and are constantly being developed further.
 
This, in turn, means that a change in the company culture becomes necessary. It is not enough to introduce some agile methods like Design Thinking or Scrum here and there. If decisions are still embedded in old hierarchical structures, the company does not become agile.
 
Many believe that digital transformation is expensive. But that is only partly correct. Of course, it costs money to hire an agency to sort out the data chaos and to develop a comprehensive digital strategy. But it is an investment in the future. If outdated business processes are improved and accelerated by innovative digital technologies, you save time and money.
 
In addition, there are a variety of funding opportunities for companies that want to digitalize their business processes – for example, “go-digital”, a program of the Federal Ministry of Economics and Energy, or “Digital Now” of the Federal Ministry of Economics and Climate Protection. Small and medium-sized enterprises (SMEs) can also benefit from these offers. We have put together an overview of the most important funding programs in Germany here.
 
By the way: Not every software solution has to be expensive. At codafish, for example, we are very successful in using open-source applications such as Pimcore, which are available for free and are constantly being improved by dedicated developer communities. Which brings us to the next challenge…
 
The digital transformation never ends! Anyone who thinks about digital transformation as a project that can, eventually, be successfully completed is engaging in limited thinking. Digital change is an ongoing process in which it is always important to react quickly and innovatively to current changes. Nevertheless, this should not discourage you! Get an agency on your side that has an eye on the latest digital developments and that can help you, at any time, to use them for your business goals. Then, you can look confidently into the future!