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Why is Digital Transformation Important for Businesses?

By CIOReview | Thursday, January 23, 2020

Digital transformation is a broad term when it comes to businesses. Its role is shifting from driving marginal efficiency to being a catalyst of innovation and disruption.

Fremont, CA: Digital transformation has been on the agenda of organizations for years, and 2020 is going to be crucial. Transformation means to move from one state to another, but digital transformation is a journey from inflexibility to “permanently agile” condition. Reaching that point might require the adoption of new programming, infrastructure, or the Internet of Things advances. The biggest reward accumulates from reimaging workflows to accommodate prolonged change and creating a mechanism that continuously measures results. New technologies are challenging the old business models, and more automation is happening to fulfill business requirements. Artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) are getting matured, improving efficiencies.

Digitalizing Economy

Digitalization prevails not only in the enterprise world but in all the aspects of life acts as a catalyst for digital transformation. The systems and processes need to upgrade themselves, as data is close to completely being stored as digital. The technological advancements like increasingly faster broadband connections have cleared the difference between the physical and digital world.

There are various drivers of digital transformation. The first being 4G and 5G networks might open new opportunities for the digital economy to expand. The adoption of cloud computing, infrastructure-as-a-service (IaaS), and software-as-a-service (SaaS) being another. The enhancement of the network of underwater cables throughout the world has provided a platform for people to build cloud or Internet-based businesses.

Reduction of IT Complexity

Generally, companies go under a digital transformation to better the vital processes in their business. Companies that do ‘re-platforming’ utilize a new direction to how they use technology in the business. Shifting to a digitally sound organization is a significant project.

The IT systems used by the businesses are fragmented systems, which results in a lack of efficiency in the processes or lack of data transparency to name some issues. Hence there is a requirement for a simplification of the landscape in any business of a substantial size. By taking such measures, a company can reduce its operational risk by equipping itself with a modern technology platform.

All the technologies and its implementation have to improve the lives of the people as this is one of the most fundamental gains from digital transformation.

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