Digital transformation What you need to know

Digital transformation: what you should know

Do you sometimes feel that the world is always turning faster? Are new apps and software solutions, smart devices and social media trends making you dizzy?
Then you are not alone! “Everything flows and nothing remains the same” – the Greek philosophers knew that.

Computers and the internet have made this change occur even faster – and the era of COVID-19 has further accelerated this process. We are in the midst of a digital transformation: all areas of our lives are being changed by digital technologies. This is challenging on the one hand, but also a great opportunity on the other. And you should use them for your company! In this blog article, we want to explain why digital transformation is so important for companies – and how it helps them to succeed.

Are you already digital?

We support you not only with the digital transformation. Find out all about our services.Services

Are you already digital?

We support you not only with the digital transformation. Find out all about our services.Services

Are you already digital?

We support you not only with the digital transformation. Find out all about our services.Services

The most common questions about digital transformation

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!
 

Comprehensive digital transformation is important for your business because…

  • …all data can be centrally-managed and networked
  • …departments can better interact
  • …important workflows can be automated and optimized
  • …many business processes either become faster or obselete
  • …productivity can be measured, resources targeted, and costs reduced
  • …digital project tools simplify team collaboration
  • …cloud technologies and real-time synchronization enable location-independent and hybrid working
  • …your employees have more time for creative tasks
  • …you can target and better interact with your customers using modern data analysis
  • …it enables you to react faster to changing customer needs
  • …it is immediately apparent which products are successful and which are not
  • …through innovative digital business models, new target groups and sales markets can be won and you can increase your sales
  • …it is the only way that you can stay competitive

 

Which processes can be digitalized in a company and how is the digital transformation made successfully?

how is the digital transformation made successfully?
In short: A lot! And certainly much more than you expect at first.
 
There are now innovative digital solutions for all relevant business areas – from recruitment to product development to marketing, and from accounting and sales to customer service. Whether you use a project planning tool to keep an eye on your to-do’s or you have important customer data organized and assessed using a CRM system: Modern software solutions today that are based on cloud technologies can, therefore, be synchronized in real time and accessed from different devices regardless of location.
 
For example, we at codafish, like to work with Zoho One. This is a cloud-based software package with over 40 applications specifically designed for companies. This allows many different business processes to be digitalized, automated and networked. You can subscribe to these tools individually, in bundles or you can get the total Zoho One package right away.
 
We also use open-source software, such as Pimcore, which can be used to collect, manage and analyze large amounts of digital data – free of license fees. Networking again plays an important role here: All data that is generated in a company is centrally-managed by Pimcore and synchronized in real time so that all company departments can access it simultaneously.
 
Digital transformation can only succeed if you and your employees are open to new ideas. Of course, you can start small: Digitalize some data here and use some new software there. But it makes much more sense to develop a comprehensive digital strategy that saves you time, resources and money. Get professional support from a digital agency – from us, for example. Because we are able to quickly understand which digital solutions are suitable for your business goals.
 
We support the conceptualization and integration of these applications in your company and take care of your ongoing development needs. At the same time, we also advise you on which funding programs are available for your digital transformation

How does digital transformation change company culture?

The change brought about by digital technologies affects the entire company – including the people who work there and, thus, the company culture.
 
Company culture even plays a key role. Because fundamental changes can only be implemented if thinking, communication and methods for collaboration also change – when departments no longer exist in isolation from one another (“silo thinking”), when traditional hierarchical structures are replaced by teams with flat hierarchies and when the company, as a whole, becomes more agile and customer-oriented. Soft skills such as creativity, curiosity, courage, flexibility, personal responsibility, pragmatism, empathy, communication and the ability to collaborate are extremely important in this context for employees and managers.
 
Communication in companies has been increasingly occuring online – most especially since the Corona Virus pandemic. The tools needed should not be missing in any company. Messenger or chat apps ensure fast exchanges between individuals and groups.
 
Project planning software shows employees what to do and what has already been done. Online conferencing technology and cloud computing enable remote work. And there are many other ways to make your company and your employees fit for digital transformation. Contact us and we will be happy to tell you more!
 
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Are you already digital?

We support you not only with the digital transformation. Find out all about our services.Services

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