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horizon | insights

What is a digital transformation, and why does digital transformation matter?

Updated: Jun 21, 2022

Digital Transformation is such a broad concept that it can take many forms. However, in general terms, we define digital transformation as Transforming your business from manual processes to technology and the digital tool. Integrating digital technology into all areas of business results in fundamental changes to how companies operate and deliver value to customers.

According to Association Success, the 4 Main Areas of Digital Transformation includes:

  • A strategic aim that lines up the digital transformation effort with the organization’s overall strategy.

  • A customer aim helps to create a customer experience that is consistent, unified, and modern.

  • A culture aim that secures the workforce has the proper mindsets, attitudes, and behaviors to accommodate transformations.

  • A data aim that makes sure the organization can use data and analytics to make informed decisions, enhance business processes, and more.

Nike is one of the well-known companies that found digital marketing increased revenue and improved stock value. Nike applied a substantial digital transformation of the company’s mindset, supply chain, and brand, which helped them connect better with its customer base. Nike concentrated on more robust data analytics and data science projects to update its e-commerce strategy, created more powerful digital marketing campaigns, and ramped up its direct-to-customer sales. Applying more efficient and effective use of digital consumer data brought Nike to open concept stores, create more membership opportunities, and improve the customer experience online and through apps.

According to the 2020 International Data Corporation (IDC) Worldwide Digital Transformation Spending Guide, IDC foresees that global spending on digital transformation (DX) of business practices, products, and services, will grow 10.4 percent in 2020 to $1.3 trillion. As reported in a Deloitte survey, 50% of businesses anticipate that more than half of their current processes will be automated by 2025. Digital transformation ensures your company will never lose that institutional memory, capturing years of intelligence in manufacturing while also making the process more structured.

Moreover, digital transformation delivers organizations with the added speed and agility they need to carry on competitive. Tying product design and manufacturing operations together, critical phases of the product development lifecycle propel new products to market 20% to 40% faster.

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