Digital Transformation: What it is and How it is Done

Surely you have heard of digital transformation in companies. It is a concept that haunts us. But what is digital transformation? What is this phenomenon? How can I apply it in my organization?

We will answer these questions. But first, it should be noted that Human Resources should lead this process.

Of course, more than this department will be able to complete the digital transformation. The support of the company’s management is essential if we want it to be a success.

What is digital transformation within companies?

Digital transformation is the process of integrating technology into the company’s different areas. This implies a radical change in our way of operating and offering more value to customers.

The company lives a constant challenge. We have to challenge the status quo and experiment with technological innovations.

This process may involve changes to our products, techniques and strategies. If we want to get the most out of the transformation, it is easy to rework them.

The supply chain and workflow will change. The staff will need new skills, and management will start new discussion processes. It also changes the way you interact with customers.

Behind it, there can only be one goal: to remain competitive. It helps us to continue growing at the pace of the market and meet customers’ needs.

In other words, digital transformation in companies allows us to adapt to a changing environment. Technology is constantly evolving. If we update ourselves, we can catch up to the competition.

Differences between digital transformation and digitization

Now that we know what digital transformation is, we must differentiate it from digitization. These are concepts that often need clarification. However, they imply essential differences that you should be aware of.

As we have seen, digital transformation in companies is a paradigm shift—a different way of working.

Instead, digitization consists of converting physical elements into digital ones. For example, the form previously filled out on paper becomes a digital form.

The digitization of the company is part of the digital transformation. Embracing new technologies is only the first step.

When management takes that step, Human Resources must take action and start the transformation process.

Characteristics

To better understand the role of HR in the process, you need to know the characteristics. We will not limit ourselves to adopting new technologies. HR must play a key role in changing the business paradigm. To do this, there are five key elements:

Customer experience

Our ultimate goal will be to offer the best customer experience. Therefore, we will only adopt an emerging technology once we know it thoroughly.

People

The workforce cannot feel threatened by technology. Innovations are still helpful, and they must be able to use them.

Change

We have already said that digital transformation implies changes in the organization. Some changes must be the result of planning.

Innovation

It goes hand in hand with digital transformation. Internal communication is vital. We will help workers to experiment, to develop their ideas.

Leadership

Proactive leadership is critical to the success of the digital transformation. Managers and team or department leaders must look to the future and be open to new ideas and technologies.

The sum of these five pillars leads to a culture of innovation. The result will be a staff committed to their work and eager to offer the best customer experience.

Phases of the transformation in companies

Since we decided to take the step to complete the digital transformation in companies, four stages must be overcome. It all starts with the diagnosis phase.

An analysis of the current situation will be followed by strategic formulation.

From here, digital initiatives will emerge. In this third phase, the industries, plans, objectives and means we will use will occur.

Finally, we enter the phase of execution and change management. HR will empower workers to implement initiatives and digital strategies.

Types of digital transformation

To better understand the examples of digital transformation that we find in our environment, it is necessary to know its different modalities.

We can identify up to 4 types of digital transformation. Four ways to complete the process in our organization. They are the following:

Processes: New technologies, data, analysis and automation allow for reinventing processes in the organization.

Organizational: A complete long-term change. It implies a new mentality in the company and changes in processes and talent.

Business model: It represents a change in traditional media, delivering value in the industry.Business domain: We redefine our products and services, removing industry boundaries.