Recent research by Sweden Data has revealed a close correlation between a country’s internet maturity and its actual per capita gross domestic product (GDP) growth. China, as the world’s largest internet market, will undoubtedly drive comprehensive improvements in people’s living standards through economic transformation, fueled by increased corporate digitization.
In just the past decade, the digital space has seen significant development, and discussions about digital transformation have become a buzzword in the tech industry. From using cloud-based software to applications that can meet virtually any need, many businesses are leveraging digital transformation to enhance their operations.
Digital transformation is a way for companies to refresh their digital systems and conduct business through innovative approaches driven by technological advancements. It’s a process that fundamentally changes operations using digital systems or tools, and given the constant evolution of technology, digital transformation can be an ongoing journey.
Is Business Driving Digital Transformation?
Digital transformation is not just a technological shift; it’s also a cultural and business transformation that fundamentally reshapes customer experiences, business models, and operational systems. It involves delivering value, generating revenue, and improving efficiency through a complete overhaul of how businesses operate.
Digital transformation is an inevitable trend in technological development and must be a part of market strategies within business plans. When embarking on digital transformation, analyzing business logic, use cases, and development strategies is crucial.
Reports from international consulting firm LEA show that business is a key driver of digital transformation because the initial implementation can be time-consuming. For instance, what does digitalization mean for a company when it comes to new product launches and how that product will be utilized digitally? What does digitalization mean for businesses, from the manufacturing process to marketing itself?
- Data is Key
Digital transformation implies that as a business, any user or customer in the digital space can provide some form of data. Whether it’s from customer shopping habits to demographics attracted to a particular product, ensuring system security, preventing data leaks, and safeguarding data is of utmost importance. This increases customer trust and is a vital principle in digital transformation. From a security perspective, the systems themselves are relatively complex, and data security systems are crucial for any digital transformation.
- The Power of Analytical Insights
The choices of digital systems and digital transformation are often based on the insights generated from analysis. For instance, if a company’s digital transformation involves reducing bounce rates (users leaving the website after clicking), the types of content that lead to users leaving can be modified.
The power of analysis is often a deciding factor in how a company moves forward and what it can offer to customers. It may even uncover content or target markets that were previously unnoticed or assumed.
- Meeting Customer Expectations and Needs
One of the primary advantages and principles of digital transformation is the ability to meet new customer demands and desires. Customers expect greater access to information than ever before, and their digital experiences can either inspire or deter them from using your business. Creating delightful digital experiences is a crucial foundation for personalized marketing, providing services and products that exceed customer expectations based on their evaluations of digital processes.
- Application Development
As part of the digital transformation process, consider fully developing and prototyping applications. Application development can be highly valuable to your business, whether it provides additional discounts for application users or is easier to use. Besides the functionalities that applications can offer, the design, database, and testing will be at the forefront of application design and can be a critical part of the digital transformation process.
- Automation of Processes
With the development of innovative technologies, the need for comprehensive automation based on artificial intelligence and machine learning is also evolving. This will make automation of certain digital processes part of a company’s digital transformation. The capability for process automation means a significant reduction in the need for human intervention. This includes everything from how certain instructions are managed to automated updates.
- Security and Risk
Data security and encryption are extremely important aspects of digital transformation. Consider security and risk throughout every layer of coding and applications. Effective risk reduction for hacker attacks and general data breaches is crucial. This isn’t just for customers or consumers; it’s also for the security of the company. When evaluating new technologies used in the digital transformation process, I believe that security standards and audits are integral parts.
Author’s Conclusion:
Through seamless collaboration with businesses based on data analysis, technological innovation, business processes, and security compliance, Tang Cultural Media Think Tank helps turn the vision of digital transformation into reality for companies. Understanding the risks and opportunities that innovative technologies bring to businesses and providing novel digital solutions can leverage these technologies to further optimize business performance.
Author: Yang Ziyi
Images: Jin Xiang
Review: Lv Yuanhui
This article is an excerpt from “The Tang Cultural Media Think Tank China Enterprise Development Report” (2022).