The Role of Digital Innovation and Transformation in Business Growth
Innovations and transformations are often used interchangeably to define any shift from one standard to another. However, they are different in the digital world. Usually, innovations and transformations are bound by a cause-and-effect chain, meaning that innovations lead to transformations, and transformations are the results of innovations. Digital consulting services can prove invaluable for companies in changing their system, workflow, procedures, and even the technology they utilize.
While innovations bring new opportunities, transformations turn those opportunities into viable solutions. In the digital world, innovations mean a sudden spark of creativity and incipient actions that add a new dimension to a company’s strategy.
On the other hand, transformation is a term used to describe processes, procedures, and ways of doing things, unlike any creative spark.
An Illustration of Digital Innovation and Transformation:
Here’s an example of innovation and transformation.
Recently Domino, the popular pizza-delivery chain, has shown an instance of digital innovation. Their success is due in part to the alignment between digital business innovation and the company’s digital strategy. When Covid-19 made it impossible for customers to pick up their pizza orders, mobile app orders surged to 80%, a record high for the company.
As for transformation, we can refer to the success story of Desktop Metal, a reputable 3D printing and manufacturing company.
The company is revolutionizing manufacturing with its innovative digital technology for 3D-printed metal. Automakers have already made substantial investments in this new technology. In addition to automotive, there are uses in the medical, dental, aerospace, and luxury industries.
Importance of Digital Innovation:
There is a digital component in almost every aspect of human activity, whether for professional or personal use. Daily, we are surrounded by digital innovation, whether we hail a Lyft, order something from eBay, ask Alexa what time the game is on, or plan a trip on Airbnb. The use of digital technology and applications to improve productivity and provide access to better services at cheaper costs is fast becoming a global phenomenon. End-to-end solutions are the key to digital innovation. It’s a perpetual process to stay ahead of the curve, innovate, and drive positive impact in your digital transformation journey.
Importance of Digital Transformation:
Before the COVID-19 pandemic, the primary focus of digital transformation was the customer experience. It is now the focal point of operational efficiency and innovation across the firm. According to research, the growth rate of enterprise IT leaders is two times that of the average company. The leaders use essential cloud technologies, such as AI, blockchain, and IoT, to drive digital transformation that enhances the customer experience, increases efficiency, reduces costs, and improves innovation.
Digital Innovation vs. Digital Transformation:
Digital transformation focuses on the broad picture. The goal is to foster a lasting digital-led culture that prepares the company for what lies ahead. It becomes easier for employees to work productively and efficiently by making extensive changes to the overall culture.
By 2023, 90% of enterprises worldwide will prioritize investments in digital technologies to enhance physical environments and assets with digital experiences.
Frequently, the objective of digital transformation is the long-term improvement of business operations and the ability to adapt to changes in the competitive landscape. This requires the delivery of measurable outcomes that contribute to the organization’s overall well-being.
Transformation and digital innovation have comparable objectives but on a smaller and more immediate scale. Innovation might refer to changing a product line to make it more competitive and boost short-term income. It focuses on the concept of “newness,” and when organizations execute it successfully, they establish themselves as industry leaders. However, transformation demands consistency. In other words, the effects of innovation will only last for a while, and you’ll soon need to invent again, particularly if rivals can imitate it.
1) Improving Customer Experience
The core focus of digital transformation is the customer experience. According to research, 35% of corporate executives believe digital transformation enables them to fulfill consumer expectations better and increase operational efficiency (40%), and 38% of executives want to spend more on technology to make it their competitive edge. The journey begins through digital innovation, where companies use analytics, BI, and data science to get a 360-degree view of the customer.
The newness of digital business models keeps competitors at bay as companies monetize existing assets in new and innovative ways. Eventually, the innovative approach leads to becoming a customer-centric enterprise that empowers people to reinvent the industry.
2) Enhanced Data-Driven Insights
You can monitor KPIs and evaluate data captured during digital marketing campaigns when you go digital. Digital innovation allows you to use analytical software that automatically generates reports on website traffic, conversion rates, and mobile marketing.
Keeping the above observations in mind, businesses must select digital transformation strategies following business objectives. Using data-driven insights may help gain a deeper understanding of consumers and rethink company strategy, facilitating improved decision-making and paving the way for a greater return on investment.
3) Greater Interdepartmental Cooperation:
Greater collaboration across departments DT provides a fantastic chance for organization-wide cohesion when organizational leaders implement digital coherence. With the right digital innovation, collaboration tools, and organization-wide cultural diversity, businesses can encourage staff to work more fluidly in pursuit of their digital goals.
There will be a smooth and seamless transition when everyone is united with a single goal. As a result, businesses can witness transformative and exponential growth that benefits all constituents in the company. Rather than a siloed approach, modern digital transformation strategy incorporates shared digital networks and platforms across departments, enabling businesses to fully reap such efforts’ rewards.
4) Enhancements to Agility and Innovation
With DT, companies thrive on innovation and multiply. 68% of businesses regard agility as one of the three most essential aspects of DT projects. On the other hand, digital innovation is critical for companies to maintain their leadership in their markets and to provide the IT infrastructure and access to essential data required by all business users. Modern businesses adopt an innovative approach to bring about transformation in the digital sphere to continually improve customer engagement, deliver a competitive advantage, and drive growth.
However, applying and sustaining these transformative changes in today’s volatile, uncertain, complex, and ambiguous (VUCA) world is challenging because the environment keeps changing. Worse yet, when you’re tracking an ever-changing target, you never get to “refreeze” the systems to the new normal. Hence, it is critical to align your business transformation programs to the speed and cadence of the digital age so you can enjoy sustainable success.
Organizations must innovate digitally or adapt to changing consumer and business trends to avoid becoming obsolete. In fact, according to a study, 90% of businesses want to embrace a digital-first corporate approach. In a time when building commercial online and mobile apps does not require months or years of writing extensive, complex code, it is imperative to disrupt or be disrupted.
If you are looking for a partner to help you with your digital transformation and need to innovate or adopt, look no further than us. As a leading digital transformation consulting service provider, we offer custom solutions for business owners and entrepreneurs who want to stay ahead of the curve and keep pace with emerging technologies. To know more, book a call today!