Digital transformation: What it is and why it matters
What is digital transformation?
Digital transformation is the practice of using modern digital tools to enhance business processes, products and services.
This could mean optimising your online presence by creating an aesthetically pleasing website or introducing automation and artificial intelligence (AI) into your operations. Digital transformation facilitates the delivery of existing services and provides opportunities to create and deliver new ones.
Why digital transformation matters:
Ensure profitability
Digital transformation is essential for businesses of all sizes, especially if you want to remain competitive in today’s ever-changing market.
Investing in digital transformation helps optimise processes, save time and reduce expenses, which helps ensure profitability.
Improve customer service
By introducing automation, AI and machine learning into your operations, you can make sure customers get the personalised service they deserve.
This could mean faster response times and more personalised interactions, which can help build customer loyalty and trust. You can use technology to provide seamless customer service across platforms and analyse customer behaviour to ensure you meet their needs.
Maximise efficiency
Integrating technology into your existing processes allows you to automate repetitive tasks, freeing up your team to focus on more important ones. This can help increase productivity and efficiency, leading to cost savings.
For example, you can use automation to:
create reports
handle customer inquiries
process orders.
Digital tools such as analytics can also help you identify additional opportunities for improving efficiency.
How to create a digital transformation strategy
A digital transformation strategy defines how you’ll use technology to meet your goals. It includes:
governance structures
management strategies
risk mitigation practices.
When creating your strategy, it’s important to:
1. Take inventory of existing digital resources.
Assess the strengths and weaknesses of existing resources to find gaps in functionality and usability.
2. Identify processes that need improvement or have potential for growth.
Analyse current processes to identify areas where digital solutions could provide greater efficiency and performance.
3. Develop a digital transformation roadmap.
This roadmap should include specific objectives, timelines, metrics and key performance indicators (KPIs) that’ll help you track progress.
Take the following steps to help ensure success:
Define who’s responsible for implementing new technology.
Establish clear goals by defining what you’re trying to accomplish.
Oversee vendors and ensure they meet your requirements.
Train personnel to use new digital tools.
Key trends in digital transformation for 2023
Hyperautomation
Hyperautomation is an innovative strategy businesses use to automate processes quickly.
It’s also a critical piece of digital transformation, as it reduces human error in routine tasks and provides insightful data.
Hyperautomation is essential to building organisations that can quickly pivot and remain competitive.
It includes the use of:
AI: This technology can help you identify opportunities for improvement in your systems, create automated quality assurance and accurately predict customer needs based on previous patterns.
Business process management (BPM): BPM allows you to model, analyse and optimise your business processes from start to finish.
Event-driven architecture (EDA): EDA is an approach to software development that initiates operations in response to specific events. It helps you create applications that are more responsive and easier to scale, allowing for quicker responses to customer needs.
Intelligent business process management suites (iBPMS): A combination of business process management (BPM) software and AI, iBPMS help automate processes.
Integration platform as a service (iPaaS): A cloud-based platform, iPaaS can help businesses connect applications and data, allowing them to share information quickly and securely.
Machine learning (ML): This technology uses algorithms to identify patterns in data sets, allowing you to make better decisions. Businesses use ML for various applications, including cyber security, facial recognition, search engines and virtual reality systems.
Robotic process automation (RPA): RPA is software that simplifies the development, implementation and operation of robotic programs that imitate human behaviour when interacting with digital systems or applications.
Businesses are increasingly turning towards automation to stay ahead of the competition and manage the rising cost of staff. But it’s important to remember that automation isn’t a substitute for employees.
It’s an invaluable asset to help them work smarter and more productively. Using automation can also fuel career growth and prevent burnout by allowing employees to engage in more stimulating tasks rather than tedious and redundant ones.
Cloud computing
Taking advantage of cloud computing is like having the world’s most powerful computer at your fingertips.
The internet gives you on-demand access to remote data centres managed by a qualified cloud services provider (CSP). The CSP typically charges a monthly subscription fee or bills customers based on usage of these resources.
Cloud computing offers many advantages over traditional on-premise systems, including:
Cost savings: Cloud computing eliminates the need for hardware investments, reduces IT infrastructure costs and allows users to pay for only the features or storage they use.
Increased collaboration: Cloud-based solutions allow multiple users to access applications, data and services wherever they are. This makes collaboration easier and more efficient.
Security: Cloud computing providers have robust systems to protect data and ensure compliance with industry regulations.
Cloud computing among small-to-medium-sized businesses will continue to grow over the next few years because of its compelling benefits. Cloud enterprise resource planning (ERP) solutions are becoming increasingly popular as they offer businesses a way to manage their operations more efficiently across multiple locations and departments.
MYOB’s cloud-based ERP solution, for example, helps businesses streamline their operations and access real-time insights into customer, finance and inventory data. It’s a comprehensive solution that can help businesses manage their operations more effectively, resulting in better customer service and increased productivity.
Need support?
Digital transformation doesn’t have to be a daunting task. Many resources are available to help businesses of all sizes.
Courses and toolkits
Keep up with the latest technologies and trends in the digital transformation space by taking online courses.
Toolkits, like the one the South Australian Government offers, can also help businesses map out and manage their digital transformation strategy.
Digital transformation consultants
Find a digital transformation consultant who can work with you to create an effective and tailored strategy.
They can assess your current systems and processes to identify areas for improvement and provide guidance on implementing changes. Services like MYOB Consulting help maximise productivity, so you can continue delivering high-quality services that exceed your client’s expectations.
Grants and programs
Grants and programs can help cover the costs of new technologies, training and other investments. Use the Australian government’s grant and programs finder to learn what’s available.
Australian Small Business Advisory Services (ASBAS)
The ASBAS program provides one-on-one advice to help businesses develop an effective digital transformation strategy.
Find a digital solution provider near you.
Transform your business processes with MYOB
MYOB is a business management platform that allows you to digitise and automate your business processes across all your key workflows — your customers, employees, projects, supply chain, finance, accounting and tax.
With MYOB you can leverage the power of technology to become more efficient and productive, while gaining visibility and insights into all areas of your business’ operations and performance. Only pay for what you need today and scale your platform as your needs change tomorrow. Be future-ready with MYOB.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.