Digital transformation has become a buzzword in recent years, but it can still be a confusing concept for many business owners. Marguerite Fleming and her team have written a blog post that outlines the difference between updating technology and digital transformation, and why the latter may be the best thing for your company.
Updating technology is essentially modernizing the tools and processes that a business already uses. This might involve moving from a fax machine to email or using Slack instead of a bulletin board. While these updates can make a business run more efficiently, they don't fundamentally change the way the business operates. Users are typically left to figure out the new technology on their own after it has been implemented.
In contrast, digital transformation involves a more holistic approach to incorporating technology into a business. It requires rethinking the way the business operates and finding new ways to deliver value to stakeholders, customers, and employees. This may involve changes to multiple departments and processes, and it requires everyone on the team to be open to change.
The COVID-19 pandemic has accelerated the need for digital transformation in many businesses. With so many people working remotely, companies have had to find new ways to collaborate and stay connected. The IDC predicts that worldwide spending on digital transformation will reach $2.8 trillion by 2025, highlighting the importance of this process.
One example of a digital transformation is using MS Teams as a full HR tool. This might involve downloading an extension to manage time off requests, sign-ins, and shift changes. By introducing "how-to" videos and other training materials, the project team can ensure that everyone knows how to use the new features. This can improve efficiency, communication, and collaboration across the team.
While updating technology can be helpful, it can also cause a gap between what a business is doing and what it could be doing. Focusing on digital transformation instead can help a business fill these gaps and find new opportunities for growth. It's important to approach digital transformation as an ongoing process rather than a one-time project, as technology is constantly evolving and changing the way we work.
In conclusion, digital transformation may be the best thing for your company if you're looking to improve efficiency, agility, and collaboration. It requires a holistic approach to incorporating technology into all aspects of the business and a willingness to embrace change. While it can be a daunting process, the potential benefits are significant and can help your business stay competitive in a rapidly changing digital landscape.
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