Demystifying Digital Transformation: A Beginners Guide

 The phrase “Digital Transformation” is probably one you have heard in today’s constantly evolving technological world. But what exactly is it, and how can it benefit your business, especially if you’re just getting started?

LET’S BREAKDOWN DIGITAL TRANSFORMATION

So what is digital transformation?
If you type that question into Google, you’ll get billions of results. There may be a misconception that digital transformation is just about technology, but that’s not the case.
Digital transformation means reshaping how your business operates using technology. It’s about using technology to streamline, enhance customer experiences, and grow. It’s a disruption to the ‘traditional’ way of operating to become more digital; it’s also about cultivating a digital culture and upskilling the people in your company or business, as it takes a team to work through a transformation.

let’s differentiate between Digitization, Digitalization and Digital transformation
They are, no doubt, very similar, but they are different.

To digitize, or digitization, is the process of making something digital or creating it in a digital form. E.g., we have Google Forms that you fill out online, and then you have physical forms. You also have paper-based magazines and digital magazines (online versions of the paper-based magazines).

Digitalization is about using digital technologies to change your business model or provide a new stream of revenue. It’s about using online technologies and channels to become a digital business. A simple example is converting your typical documents written in paper with a pen to having them in online spreadsheet format, PDF format, etc.

Digital transformation is a process of reinvention. It looks at leveraging digital technologies and processes to build new systems, cultivate a digital mindset, and exploit new opportunities.

EXAMPLES OF DIGITAL TRANSFORMATION

• A government agency may digitise its records and implement an online platform to streamline citizen services such as paying taxes or renewing licences.
• An educational company (or school) may shift traditional classroom learning to online platforms, increasing their audience reach and providing flexible learning opportunities. Online learning platforms like Coursera and edX have transformed education.
• Travel: Airbnb:

• Airbnb transformed the travel and hospitality industries by offering a platform for individuals to rent out their properties.
• Travellers have more diverse and cost-effective accommodation options.

• S&B London Beauty, UK, is a further example that you can see below. We, the digital agency, assisted S&B London Beauty, UK, in transforming digitally by enabling the sale of their brands’ cosmetics online via an e-commerce website.

(Uber) transportation
• By offering a mobile application-based digital platform that links passengers and drivers, Uber upended the taxi industry.
• This innovation has made it easier and more efficient for people to find transportation and for drivers to earn income.

Let’s take a short journey with a tailoring business called “Sylvia’s Apparels.”

Sylvia’s Apparels says

“Hey I need to expand beyond my physical store”. 

She imagines providing tailoring services not just to locals but to clients worldwide.
This is officially her Step 1, “Dreaming Big”.

Step 2: Sylvia Apparels conducts research and looks for technology tools that can assist her.

Step 3: She seeks help to get an e-commerce website where customers can explore fabric options, see tailoring examples, and, most importantly, place orders from the comfort of their homes. It’s like having a tailor shop that’s open 24/7!

Step 4: Then she leverages social media and showcases all she has and shares the URL where customers can comfortably choose their sizes and check out prices.

Step 5: Sylvia’s Apparel can use online ads to let people know about their fantastic digital transformation. It is similar to hanging large, eye-catching posters around town, but online!

Step 6: Then finally, Offer top-notch customer support through digital channels. Imagine Sylvia’s Apparels as digital assistants, ready to assist customers with their fashion needs anytime, anywhere.

So, with these steps, Sylvia’s Apparels have transformed from a quaint tailor shop into a digital fashion powerhouse!

Did you hear of the Pandemic Boost?

COVID-19 accelerated digital transformation in 2020! According to an online survey conducted in 2020 and 2021, 81 percent of consumers in Nigeria have been shopping more online since the beginning of the pandemic. The health crisis led to an increase in demand for e-commerce in Africa. Kenya and Ghana registered an increment of 79 percent in online purchases. In South Africa, online shopping grew by 68 percent. Over half of consumers reported that they were buying more groceries and clothing items online.

Source: Statista

And even when the pandemic had gotten subtle and business went on as usual, people continued shopping online in 2021, as seen above.

According to Digital Commerce 360, if the pandemic hadn’t happened, online sales wouldn’t have reached that level until 2023 (after 2 years).
As a result of the pandemic, companies turned to digital technologies and networks to reach and serve customers. For businesses that were already present online, this meant upscaling operations to meet demand. For those who had just started on their digital transformation journey, this called for an unexpected pivot.

DIGITAL TRANSFORMATION MISTAKES TO AVOID

1. Resistance from staff: When staff do not understand the reasons and benefits of change, there will be pushback. Make sure your workforce knows the motivations for a digital transformation and the benefits to the business and customers.
2. Underestimate costs: The digital transformation process obviously involves money as it is a reinvention of a business. Make sure you approach it with a budget that can deliver on your expectations and goals.
3. A lack of commitment: This is a process that will take time and commitment. Make sure your business has a plan to guide the process and an expectation across the company or business that time is required.
4. Lack of skills : To transform your business requires manpower and often companies do not have the knowledge and skills required. Training is super important and can have an impact on staff skills, so think about creating or bringing in a tailored program that covers the specific areas your company needs to thrive.

SUCCESS IN DIGITAL TRANSFORMATION FOR YOUR BUSINESS OR WORKFORCE.

Digital Transformation can be a complex process especially when starting from scratch and the people part of it is just as important as the technology. At TDA, we can help you give your business that push to transformation.

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