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Writer's picturePablo Tellaeche

DIGITAL TRANSFORMATION IN COMPANIES AND ORGANIZATIONS

Updated: Mar 22

Digital Transformation in companies
Digital Transformation in companies
 
Extract

Digital Transformation in Companies and Organizations, more than an option, is a necessity for business success in the current digital era, requiring the adoption and integration of digital technologies in all areas of the business to improve efficiency and productivity; and implies a comprehensive organizational change, with a well-defined transformation strategy, an evolution of processes towards best practices and a high-performance culture with transformative leadership.


Contents

 

The New Reality of Industries to Achieve Business Success

In the digital era in which we live, Digital Transformation has become a critical factor for the success of companies and organizations in all sectors and industries. This transformation consists of the integration of Information and Communications Technologies (ICTs) in all areas of the business., fundamentally redefining the way it operates and delivers value to its customers.


Technology adoption is no longer simply an option, but a necessity imperative to survive and prosper in a constantly evolving, increasingly competitive and globalized market. Those organizations that embrace Digital Transformation have the opportunity to improve their operational efficiency, increase their competitiveness, expand their market reach and create new revenue streams.


This process goes beyond simply adopting new technological tools involves a cultural and organizational change that affects all facets of the organization in search of adapting and taking advantage of the opportunities that technology provides for long-term business growth and sustainability.



Exponential Development through a True and Positive Digital Transformation

Each company is unique and has specific needs on its path to success in its market. Therefore, It is essential to carry out an exhaustive analysis of the current conditions, realities and capabilities of the organization to achieve a successful Digital Transformation. The result of this analysis should identify areas of improvement in which digitalization is an integral part of your solution.


Key Features of Digital Transformation

A Transformation strategy well-defined that formalizes, documents and communicates business objectives, as well as integrates digitalization as a central part of innovation. This strategy can be broken down into three key points:

  • Strategic planning that integrates the company's business vision with its conditions and realities, allowing the alignment of the organization towards achieving the growth and profitability goals of the next 3-5 years.

  • Management by Results that defines, measures and analyzes key performance indicators (KPIs) and behavioral indicators (KBIs), thus allowing you to clearly and effectively identify any deficiencies and take action to improve business results.

  • Comprehensive operations management that achieves organizational synergy and ensures an efficient, fluid and effective way of working with a vision towards maintaining the sustained profitability of the business.


A Evolution of processes that substantially reduces downtime due to lack of release of restrictions that may prevent the start, execution and/or completion of activities. This evolution can be broken down into three key points:

  • Systematize operations studying, documenting and standardizing business processes taking into consideration the existing technological architecture at the User - Process - Applications - Infrastructure level.

  • Optimize and integrate technologies and methodologies that enhance business results to achieve successful implementation of continuous improvement techniques with greater impact on results.

  • Automate, develop and integrate tools and systems that allow the team to focus on processes of greater value for clients without losing the administrative and documentary control necessary to operate appropriately.


A High performance culture that prepares the organizational structure to develop and sustain the achievements achieved with digitalization and replicate them organically and independently with a focus on the company's human capital. This culture can be broken down into three key points:

  • Institutionalization that formalizes the composition of the company, marking the interactions that occur at macro (departments), intermediate (areas) and micro (positions) levels to clarify the functioning of the company.

  • Training and Education that trains internal staff through information content that covers specific soft skills and hard tools based on the role they perform within the organization and will be necessary to develop and sustain a digitalization process.

  • Support and Coaching that emphasizes the exercise and optimization of communication, leadership, decision making, teamwork, use of emotional intelligence and team motivation to generate a Lean Culture with high-performance work teams.


As work ecosystems change and customer expectations evolve, companies must remain adaptable and willing to generate disruptive changes in their business models to remain relevant and competitive.


Key Considerations of Digital Transformation

Digital Transformation, while promising, comes with inherent challenges that businesses must address to ensure their long-term success. In addition to the fundamental characteristics already mentioned, It is crucial to consider other key aspects that can significantly influence the final result of the transformation.:

  • Access to Digital Talent and the Development of Digital Maturity: Not all people have the same level of skill in the use and adoption of Information Technologies, which is accentuated by generational differences in the human capital of a company and can affect collaboration in digital ecosystems that must be addressed quickly.

  • Adoption of Integrable Solutions: Each technological solution has particular languages, platforms, connections and other factors related to its programming behind it, which are often difficult to scalable and interoperable, thus making the correct integration of the systems difficult and forcing companies to use “bridge” applications such as Excel to connect the different parts of the business.

  • Digital Risk Mitigation and Data Protection: The growing threat of cyberattacks and data breaches involves the implementation of firewalls, data encryption, intrusion detection systems and other cybersecurity technologies to protect sensitive company and customer data.

  • Transformative Leadership: At the heart of any effective Digital Transformation process is strong, visionary leadership that not only guides the path towards digitalization, but also inspires and empowers its team to embrace change by creating an environment conducive to change, innovation, growth and adaptation in a constantly changing business world.


By taking these key aspects into account in the development of Digital Transformation and addressing them proactively, companies can make the most of the opportunities offered by the digital era and remain competitive in a constantly changing market.



Digital Transformation in Industries

The investment in time and resources in research and implementation of information technologies will vary according to the needs and levels of technological maturity of each company and industry, thus...

  • The Construction Industry It has several technological tools such as drones, scanners, among others that use Construction Information Modeling (BIM) as a basis, the implementation of which requires a joint effort by all the key actors in the projects to achieve a true implementation and digitalization of construction focused on improving efficiency in planning, project management and communication between work teams.

  • The Manufacturing industry They face a wide variety of combinations between products and services that can range from prospecting to commercialization, and their digitalization is focused on generating intelligent and connected work spaces that allow all parts of the organization to monitor, predict and control the production to optimize the supply chain, and improve operational efficiency and product customization to meet market demands.

  • The services face increasingly sophisticated and skilled consumers in the use of Information Technologies, which forces them to constantly reinvent their value propositions to continue being relevant in a digitalization focused on improving the customer experience, offering more solutions. personalized and accessible through digital platforms that adapt to changing user preferences.


Digital Transformation in all industries is a continuous, multidimensional process that requires a comprehensive approach and a continuous improvement mindset. Those companies and industries that embrace this challenge with determination and strategic vision will be best positioned to achieve success in the 21st century digital economy. In the future, new uses for technologies will be created, and as they arrive, we will have new ways to take advantage of them.



Conclusion: The New Reality and What's Next

Digital Transformation is an imperative to thrive in today's digital economy. Those who manage to adapt and take advantage of the opportunities provided by technology will be better positioned to achieve long-term success. However, it is important to understand that Digital Transformation is a continuous and constantly evolving process, which requires a long-term commitment and a mentality of continuous improvement.


Some technologies to take into account for the near future are:

  • Artificial Intelligence (AI) stands out for its ability to emulate human behavior through learning and automation.

  • Immersive Virtual, Augmented and Mixed Reality Technologies are emerging as the next dominant technological wave after the era of mobile applications.

  • Metaverse which merges various technologies such as augmented reality, the internet of things and artificial intelligence, creating an immersive and socially interactive environment.

  • Internet of Things (IoT) With a network of interconnected devices equipped with sensors and internet connectivity, it is transforming both business operations and the quality of personal life.

  • SuperApps with Integrated Application Ecosystem offering a wide range of personalized services.

  • Blockchain which offers transparency and immutability, being used in various applications such as product tracking.

  • Edge Computing for real-time data processing for greater efficiency and lower latency.

  • Distributed Cloud in different physical locations, maintaining centralized responsibility and control.

  • 5G for wireless communication, designed to provide superior performance, lower latency and massive scale capability.


These technologies are not only generating new job opportunities, but also require the acquisition of new skills for their implementation and management, such as managing automation systems and developing efficient algorithms for smart contracts on blockchain. The synergy between these technologies promises to further drive innovation and radically transform the way we work, interact and live.


We must not be left behind, we must not lag behind. Let's make the application of ICT a priority to take advantage of the productivity results so necessary today. The transformation is in our hands!


 

Want to know more? Visit our Blog: https://www.consultoriatacs.com/en/blog

Ready to transform your company? Write to us at: contacto@consultoriatacs.com

Contact us today and find out how we can grow your business together!


About Pablo Tellaeche (Author):

Owner and main consultant of TACs Consultores, Speaker and University Professor; seeks to bring a true and positive Lean Culture and Digital Transformation to every company with which he has the pleasure of collaborating.

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