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What are the fundamental pillars of digital transformation

Digital Transformation

Digital transformation has become increasingly present on our daily lives. Knowing the pillars on which it is based on allows us to deepen even more this philosophy that undoubtedly supports the new way of doing business.

Although the term “digital transformation” has been around for a long time, it is now more prevalent than ever and may be developing a new meaning.

Organizations have finally understood that technology is a tool and not the objective, that the digitization of processes is not enough and that it is necessary to adopt new types of business models that revolve around an entire digital culture.

The five pillars of digital transformation

In congruence with the previous approach, it can be said that at the core of digital transformation we have people, technology and business involved, interrelated and intertwined to form its five fundamental pillars. Let’s see what they are:

1. Culture

Digital transformation goes hand in hand with a change in culture. The philosophy of the organization and the mindset of its employees must be aligned. Having a team open to adapt, learn and perform in new digital environments and ways of working, is essential.

A key element is that the leadership for this reform comes from senior management, rather than the IT staff. This is because digital transformation goes far beyond the acquisition and use of technology.

This restructuring also implies deep planning, financial investment, as well as the adaptation of internal and external processes and relationships. Ideally, the transformation plan design should be done jointly by the organization’s leaders and IT experts.

2. The “super” customer paradigm

We are in the era where the consumer is the one who dictates the rules of what he expects. Today’s customer handles more information and uses more digital channels to interact and get closer to brands.

His decision-making power is now based not only on obtaining a product or service but on all the experience that is derived from the process. For example, some customers are loyal to a commercial brand because they identify with its values, ​​such as respect for the environment or because of their social contributions.

3. New business models

Offering solutions according to the increasingly demanding requirements of customers suggests focusing efforts on providing greater comfort and ease when meeting their demands.

Enabling operations in the virtual field and proposing options for digital products are two ways to transform the business model according to current trends.

In any case, the true competitive differential is the experience that companies can provide to the people who purchase their products and services. Precisely online environments and digital culture are appropriate to meet and perhaps exceed customers’ expectations.

4. Analytics and data

With the increasing use of electronic devices and applications, an exorbitant amount of data is generated which constitutes an invaluable source of information for business.

This is where Business Intelligence (BI) and data analysis solutions take center stage. Definitely reducing the time of data extraction and information management speeds up decision making and the production process.

5. Innovation

The search for something new is also an essential part of digital transformation. Competitive business advantages are born from the different and the special, the result of creative processes where research and discovery play important roles.

After all, the path to the virtual world is synonymous with evolution as a result of the creation of ideas, which certainly should be innovative.

After reviewing these five pillars of digital transformation it is clear that there is no going back. The change is no longer a project to become a way of working, relating and living. And the biggest challenge is not the implementation of the technology as such but rather it is a cultural issue. Educating people is the greater challenge.