Many challenges facing modern-day businesses have become so complex that they must embrace either a digital transformation or a business transformation approach to remain competitive.
Business Transformation and Digital Transformation are the most frequently used new business models that increase revenues or reduce costs. However, they are not the same thing. You need to be aware of a thin line between business transformation and digital transformation if you want your business to succeed in today’s ever-changing landscape.
Have you ever wondered what differentiates them from one another? Which is more critical to your company?
The current post will explain the difference between these two processes and how to know what’s right for your business!
Business transformation is a change in organizational structure, strategy, culture, or process to improve efficiency, effectiveness, customer service, or competitiveness. In other words, it is a change designed to make an organization more effective at what it does for its customers.
The method will transform how you interact with your customers, suppliers, employees, partners, and other stakeholders. The common goal of this type of transformation is to improve customer satisfaction which can be achieved through increased productivity and improved customer service.
Digital transformation is a large-scale, organization-wide initiative that changes a company from within. It encompasses every aspect of an organization, including product development, marketing, sales, customer service, and more.
In general, digital transformation reshapes how we work, how we live, how we interact with one another, and how we use information. The goal is to use information technology to create new products or services, improve the customer experience, create efficiencies in operations and take advantage of trends.
Digital transformation can be broken down into two types: business transformation, which focuses on changing company operations, and digital experience transformation, which focuses on improving customer service.
Business Transformation Vs. Digital Transformation
Let’s understand the key differences between business and digital transformation based on strategies.
-The Difference in Scope of Work
The scope of business transformation encompasses everything from enterprise-wide business model innovation to new product development. On the other hand, the scope of digital transformation is much narrower, limited to the use of digital technology to improve customer experience.
-The Difference in Focus
Business and digital transformation are essential for any company looking to survive in today’s fast-paced world. However, they differ in their focus: while business transformation is focused on traditional business models, digital transformation is more focused on leveraging digital technology to gain a competitive edge.
For example, if you’re launching a new product or service that could disrupt your competitors, this would be an area of focus for digital transformation. Whereas, if you’re considering what new opportunities might arise from shifting customer needs and changes in global markets and customer preferences, then it would be an area of focus for business transformation.
-The Difference in Frameworks
Business transformation is a more traditional approach to change. It’s more of a company-wide initiative that focuses on optimizing internal systems and processes. The most challenging part of business transformation is letting go of old ways of doing things.
Digital transformation, however, focuses on leveraging digital technologies to improve customer experiences. Digital transformation can be seen as an evolution rather than a revolution. It replaces outdated processes with new ones that are more streamlined and efficient.
The difference between these frameworks is significant because they tackle different parts of an organization.
-The Difference in Outcomes
Business transformation refers to a company’s strategic process of changing the way it does business, often in response to disruptive technologies or changing market conditions. It is a process that typically takes years, with outcomes that can be positive or negative.
Digital transformation refers to a company’s strategic process of rapidly adapting its technology and business processes to take advantage of digital opportunities within 12 months.
How Will Business Transformation Boost Your Business?
Running your own company can be challenging and rewarding, especially in today’s competitive market. According to analysts, one of the best ways to stay competitive is to transition from traditional business models and develop an agile, flexible company that can quickly respond to changes in the marketplace and new growth opportunities.
These five advantages of business transformation are worth considering before making a decision.
Increase return on investment
Investing in your business transformation will increase the return on investment you can expect from your company. The ROI from a successful change will have a positive effect on the value of your company as well as its cash flow.
Improve customer experience
One of the great things about a business transformation is that it opens up new avenues for customer engagement and creates a better experience. The process can involve changing your layout, advertising more, or even creating an app to make things easier for your customers. The possibilities are endless!
Continuously improving your business practices is essential to staying competitive. Innovation, in general, can help you stay ahead of the curve and outpace the competition. In today’s business world, it’s all about speed and agility.
Businesses that can adapt quickly will be able to move faster than their competitors. A fundamental way to keep up with innovation is through business transformation.
Transformation is a great way to reduce risk by helping you focus on just one product or service, allowing you to better plan and predict the potential success of your company. You’ll have a clear, detailed roadmap to follow once the process is complete, which will help you to ensure you’re following the proper steps and taking care of everything.
Reducing Operational Expenses
Automating certain functions within your business, including IT operations, marketing, and internal communications, will save time and money on your operating costs. It will also give your staff more time to understand how specific projects drive value.
How Will Digital Transformation Boost Your Business?
In today’s hyper-competitive world, businesses are constantly searching for ways to improve their efficiency and make business processes more efficient.
Digital transformation will help you become more agile by improving the speed at which you deliver value to your customers and saving your business money through streamlined operations.
Here’s why digital transformation suits your business, regardless of your field or industry.
Digital transformation has the power to increase customer engagement. 61% of consumers say they would like to interact with companies via social media. Businesses must be active on social media and responsive to customers’ questions and comments. That way, they can build trust and loyalty through customer interactions.
Improved Customer Experience
Digital transformation is all about providing your customers with the best experience possible. You’ll be able to provide instant assistance, which means you won’t have to lose your customers.
By integrating chatbots and other AI technology into your customer service, you’ll be able to handle some of the everyday tasks for employees so they can focus on high-value customer interactions.
Increase in Sales
Digital transformation improves productivity. With less time spent on operational and administrative tasks and more time on marketing, you’ll have more opportunities to generate revenue.
Digital technology can streamline the most tedious aspects of running a business and free up your time to focus on what’s most important, like attracting new customers. As a result, you’ll have more opportunities to make sales or get in touch with the end users.
Cost reduction is one of the most apparent ways a company can benefit from digital transformation. Businesses can make more effective use of their resources, resulting in decreased operational costs.
For example, IT departments may be able to streamline their processes by consolidating tasks, eliminating redundancies, and automating manual, labor-intensive processes. The process can result in significant savings on power, infrastructure, people, and other resources that would have been used to complete these tasks manually.
The advent of digital transformation has made it possible to reach customers worldwide. There are no geographical boundaries regarding marketing, sales, or service now.
You can sell products or services to someone on the other side of the world without worrying about physical logistics like shipping and import duties.
Digital transformation also opens up new opportunities for collaborations between businesses.
Which is best for your business?
Transformation depends on the type of business you’re running and what your goals are. To get a better idea, ask yourself three questions:
1) Why do I want to transform my business?
2) What is the goal of my transformation?
3) Will the transformation be easier with a digital solution or business transformation?
While digital transformation is a great approach to jumpstart your business and provide it with the newest technologies, it isn’t always necessary. Many companies have succeeded with a business transformation, which entails adding new features or revamping old ones.
For example, if you’re considering upgrading your IT infrastructure from a traditional server model to one based on cloud computing, you’re undergoing digital transformation. But your business is transforming if you want your staff members to work remotely instead of being tied down by an office building.
It depends on what needs to change and how far you’re willing to go when making these changes.
Ultimately, business transformation is about embracing technology to automate processes that humans traditionally do. It can be as simple as updating your email marketing tactics to ensure you get the most out of your outreach efforts.
However, if you want to follow a more holistic approach to transforming your business, digital transformation is for you! It will require a deep dive into how customers interact with your company: what they see on social media platforms when they visit your store or website, etc.
Get the best digital transformation services at a reasonable price by contacting us today!