Unless you’ve been living under a rock, you’ve no doubt come across the term ‘digital transformation’. In fact, even if you’ve been living under a rock, there’s a high chance you’re still familiar with the term (although we feel like we should ask if you’re doing OK?).

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That’s because digital transformations are all the rage right now, with the latest forecasts by IDC estimating that global spending on digital transformations is set to reach $3.4 trillion by 2026. And for good reason: a survey by McKinsey found that companies implementing digital transformation see a 20-30% increase in customer satisfaction and economic gains.

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Understandably, this data is enough to pique the interest of any traditional business owner, but to unlock similar benefits for your business, there’s just one small matter to attend to: what actually is a digital transformation?

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It’s all very well and good being told that digital transformation is a vital part of today’s professional landscape, but without understanding what this looks like and why it matters, the potential it offers your business will never fully be understood. And that’s before you’ve begun trying to decipher all the technical jargon and complex ideas often thrown around in discussions on the topic.

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But that’s where we come in.  

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Here at Land Digital, we know a thing or two about helping traditional businesses take a leap into the digital world, meaning we understand the knowledge barriers, skill gaps, and limitations many companies face when undergoing a digital transformation.

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That’s why we’ve put together this post introducing you to all the fundamental need-to-knows that are paramount to your business’s success. Consider it your Hitchhiker’s Guide To Digital Transformations, and consider us the Ford Perfect to your Arthur Dent, helping you to navigate all the trials and tribulations of today’s digital age.

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(And before you ask, no - the answer to all your digital transformation questions isn’t 42).

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What is a digital transformation?

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Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how businesses operate and deliver value to their customers.

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It’s a holistic approach that involves rethinking and reimagining business processes, models, and cultures to better compete in an increasingly digital world and meet evolving business and market requirements.

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So what’s all the hype about?

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With three quarters (74%) of organisations worldwide considering digital transformation a top priority, it’s clear that there’s a significant benefit to undergoing a digital transformation just waiting to be unlocked.

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But just what exactly is all the fuss about?

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The biggest strategic advantages we see businesses capitalise on when embracing a digital-first mindset and reimagining traditional approaches to their teams, strategies, services, and culture include:

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• Greater innovation and agility: Digital transformation enables businesses to innovate rapidly and become more flexible to respond swiftly to market changes.
• Enhanced customer experience: Transformations bolster customer satisfaction by providing more personalized and efficient services.
• More operational efficiency: Digitalisation streamlines operations, reduces costs, and increases productivity.
• Bigger competitive advantage: By undergoing a digital transformation, businesses can stay ahead of competitors by adopting new technologies and business models.

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How did we get here?

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In the beginning, there was…alright, we don’t really have the time to recall the complete history of business, but having some understanding of the historical context behind digital transformations can be helpful in understanding why they’re considered so important across today’s professional landscape.

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Here’s a brief timeline of how we got here:

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When pitting the pre-digital and digital era against one another and comparing the specific impacts this evolution has had on business processes and operations, there’s only one winner. If the digital era is the Rocky Balboa of business, the pre-digital era is Tommy Gunn (and if you’re wondering “who?”...exactly).

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Let’s take a look at the scorecard:

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Where are we going next?

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Of course, the most exciting thing about the digital era is that it doesn’t stop there. By its very nature, new tools, capabilities and innovations continue to evolve each day, each bringing with them a wave of new exciting possibilities for your business.

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That’s why digital transformations aren’t considered a one-and-done project, but an ongoing journey. For example, some of the hottest trends that have recently emerged include:
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• AI and Machine Learning: Increasingly used for predictive analytics, customer service, and automation.
• Cloud Computing: Facilitates scalability, flexibility, and remote work capabilities.
• Internet of Things (IoT): Connects devices and systems for better data collection and analysis.
• Big Data Analytics: Enables businesses to gain insights from large volumes of data.
• Cybersecurity: Growing focus on protecting digital assets from cyber threats.
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Why digital transformation is essential for traditional businesses
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So with a better understanding of what digital transformations are and how they became so prominent in today’s digital-first business world, you’ll likely have a clearer picture of why they’re so important for traditional businesses too.

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Of course, while new start-ups can future-proof their businesses from day one by implementing the processes and infrastructure best suited to today’s digital age, for traditional businesses, this can often pose a greater challenge. But with such a significant return, digital transformations are a journey that these businesses simply can’t afford not to take:

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• Market relevance: As customer expectations evolve, traditional businesses must adapt to remain relevant and meet these new demands. In many cases digital transformations aren’t just key to a traditional business’s growth, but to its survival.
• Efficiency and cost savings: Digital tools and automation can lead to significant cost savings and improved efficiency.
• Data-driven decisions: Access to real-time data allows for better decision-making and strategic planning.
• Risk management: Digital transformation can help identify and mitigate risks more effectively.
• Sustainability: Implementing digital solutions can contribute to sustainability goals by reducing waste and optimizing resource use.
  
  

Building this foundational knowledge is vital to your ability as a traditional business owner not just to understand the value of digital transformations; it’s also a fundamental building block to begin more detailed discussions around strategic planning, implementation, and driving objectives in an increasingly digital-first landscape (and don’t worry - we’ll cover all of that in later posts in this series!).

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Better yet, building upon this understanding won’t just ensure you remain competitive, but by showing a willingness to adopt a digital-first approach to all areas of your business, it also offers significantly more value both internally and to your customers. And ultimately, that’s what digital transformations are all about.

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Of course, there’s plenty still to learn! So if you’re eager to find out more about how to make digital transformations work for your business, sign up to ensure you don’t miss the next installments in our Digital Transformations For Businesses series.