What is Digital Transformation? Why is it important for your business?
Many prominent people in the community is using “Digital Transformation” notion more frequent recently. Among fancy words it sounds quite exciting, isn’t it? But how successful we are to implement to our daily lives and business model. That’s for sure controversial topic.
In this article, we will start with definition of Digital Transformation. In the initial parts we will talk about our digital assets, how to promote them and how to commercialize them. Then we will tell you a story about our new “Digital Day” routine. And finally, we will inform you about some topics that would probably shape our close future.
What is Digital Transformation?
“Digital” means numeric bases and it comes from the “0 and 1” that forms the basis of programming. On the other hand, “Transformation” stands for getting in a different format than it used to be. Together “Digital Transformation” is used for the ability to adapt internet era in today’s world.
Charles Darwin who has broken a fresh ground with “Evolution Theory” has a well know quote, “It is not the strongest of the species that survives, nor the most intelligent; it is the one most adaptable to change.” Here he emphasizes the vital importance of adapting to changes. As businesses the issue is not different also for us. The companies in fortune 500 or the ones which has highest margins won’t be able to survive, the ones that could realize the changes and take actions would be the ones that could survive. Thus, none of days top 5 valued companies, Apple, Amazon, Google, Microsoft and Facebook doesn’t exist decades ago.
What are Digital Assets?
Digital assets are the platforms that defines us, explains our services and underlines the value we are adding. All these platforms are placing that people could find us while they are searching for us. They equal to our address and building in digital world. General costs of building a website (hosting, domain) are low. However, user friendly site with a professional look and capability could need proficiency and budget. Social Media has also included platforms that enables clients to reach your business. They assist to you take attention and keep continuous contact with your audience. Quality content would increase your brand awareness and population of your engaged community. Local directories and review sites could also make you got found. Your online reputation is directly effected by the comments of these sites.
What is Digital Marketing?
Digital Marketing aims to present our Digital Assets, increasing brand awareness and power in various channels. The search engines that we are asking tens of questions every day is one of them. SEO (Search Engine Optimization) is about increasing our search ranking in non-paid (organic) ways. Its reliability is more since it is not an artificial ad. SEM (Search Engine Marketing) is the paid version of increasing ranking in search results. Pricing based on bidding and could shape up to demand. It has benefits such as defining potential clients, determining keywords and paying per click. Similarly, you could advertise on social media by defining your target customers but more in detail this time. In social media we all give many information such as our gender, birthday and things we like. So these platforms use all these data to announce your message to the people who are interested in your services or products. One of the trendiest method is Inbound Marketing which solves the problems of your potential clients with quality content. By the way you engaged with the brand and reach them when required. Viral marketing is also another way of content marketing.
What is Digital Trading?
Digital Trading is the point where all efforts turn into results. The brands and companies have to keep margins and turn cashflow in order to survive. Companies in any scales have to learn how to analyze data. The companies using processed data would know consumer habits, organize production capacity considering demand and optimize stocks in order to earn a unique competitive advantage. It is known by trade experts that you earn money while you are buying. So global procurement of inputs and sourcing optimization is crucial for companies. Also, B2B trade platforms like Alibaba plays an increasingly important role in global trade. And finally B2C retailing platforms are getting more common by the help of more secure payment systems and thriving capability of logistic operations.
Let’s tell a story about our daily routine to understand the place of “Digitalization” in our lives. This is the story of John. He wakes up in the morning with the alarm clock of this smart phone. He is informed about weather condition just after the alarm ring. While he is brushing his teeth, he checks the traffic condition in the mirror. He finally arrives office and enjoys the coffee that complimented by his employer in return of on time arriving. He checked the project he is working on in a mutual sharing platform. He replied the questions and completed his talk to have lunch. He ordered his favorite Chinese food from an application and checked headlines to stay up to date. He finished the noon shift. He listed the songs that an algorithm picked considering his taste. John met with a friend in dinner and paid from his mobile phone. While wandering on shopping center he received a notification that the drone he is searching for is in the store with an exclusive discount for him. It is not difficult to reach the shelf with mapping instructor app. When he is back home he planned a trip to the other city for the weekend. So he checked sightseeing places list and pick the hotel from reviews. Now time to sleep for another digital day. This is not an imaginary future projection. All these possibilities are reality even in today’s world. Just imagine what possibilities we have in future.
Now time to talk about the technologies we will talk more in close future. All the topics could be explained in a separate article but I guess it is good to know about them with a couple sentences. I will start with “Cloud IT” to this summery. It is about keeping the data in servers which is accessible with internet. Multi data entry programs, license shares and even sharing hardware which enables virtualization is a part of Cloud IT. “Big Data” is the data collected by internet-based tools such as search engines, social media platforms and blogs. We are creating a footprint in any second with our smart phones and computes we have. This data will be increased in the upcoming years. The companies who have and analyze these data will have a significant competitive advantage. They will know more about upcoming trends, consumer habits and predict the future. So “Free” platforms with “huge” market value like Facebook and WhatsApp are not actually free at all. We share quite valuable information with them any moment we spend in using them. Another important topic is IoT (Internet of Things). Here the machines produce data without any assistance of human being. And they share these data with other machines automatically as programmed. Internet is a must in our smart phones and computers. We heard that air conditioners and fridges could even get connected to internet. And what about our toothbrush or glass we drink water? How could all these items make our life more comfortable and easier when connect to the internet?
Another popular topic is “Chatbots”. From Customer Relationship Management to internal Data Flow usage of chatbots are increasing day by day. We are facing these robots in many corporation websites. But what about talking bots that are supported by artificial intelligence. Google has announced a service that could imitate humanoid errors on the phone. For sure it will be improved but is already quite successful. “Blockchain” technology is beyond popular digital currencies such as Bitcoin and Litecoin. It has developed a non-centric crypto system that enables safe data transfer. Especially the industries which works as middleman like banking, notary and finance would expected to be effected directly. And finally, “3D printer” technology will break ground initially design process then production process. Now it is much easier for a designer to see the paper works in reality. In close future we might just purchase a design file and get the product from the 3D printer in our home for any kind of item.
Almost every day we are facing a shocking improvement in technology. Digital Transformation will not be going to slow down but seems to increase the speed. The main question is “How could we adapt this new Digital Era?” We could understand the truth of the saying of Charles Darwin as we also mentioned in the beginning “It Is Not the Strongest of the Species that Survives But the Most Adaptable to change”.
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