The Path to the Future: Digital Transformation

Digital transformation is no longer just a buzzword – it is changing business models, processes, and entire industries.

But what does that actually mean for your company? Find out how to successfully shape the digital shift and what opportunities and challenges lie ahead. 

Almost everyone is familiar with the term digitalisation. However, this primarily refers to the use of technology to automate already existing analogue processes in order to increase a company's efficiency. The term digital transformation, on the other hand, is much broader. 

The implementation of digital transformation essentially takes place on three different levels.  

• Digitalisation of business processes 

Every existing company has a wide range of business processes that take place daily and often escape the conscious awareness of decision-makers. For this reason, it is especially important to digitalise all existing business processes within the organisation as much as possible, in order to lay a solid foundation for the further implementation of digital transformation processes. This includes not only core business processes but also other operations such as marketing, HR management, or accounting. 

• Digitalisation of products 

As already mentioned, the expectations of all customer groups are changing as part of digital transformation. The market demands digital solutions wherever possible. The goal should be to offer digital products and services or to expand existing offerings with digital features or additional services. 

• Digitalisation of business models 

For the medium-term strategic planning of your company, it is important to regularly review your business model to determine the extent to which your offerings meet the needs of a digitally connected market. New market gaps and opportunities for developing business models arise almost daily thanks to new technologies. Identifying them in time and using them profitably for your business is the major challenge of digital transformation.

To ensure that digital transformation is successful in your company, there are a number of factors to consider. After all, it is a complex and ideally sustainable process that changes the fundamentals of your organisation and makes it fit for the future. The following points should be taken into account when redesigning your organisation’s infrastructure to meet digital developments:  

• Fundamentally, the strategy and vision of your company should be adapted to the current state of research and expected technological developments. This is the only way to ensure that your strategy is geared for long-term success. 

• A common stumbling block in implementing digital transformation processes is employee communication. Even the best-planned changes will fail if employees are not properly involved and the corporate culture is not adjusted to align with newly defined goals. A good communication plan is essential to any digital transformation. 

• It is also important that your company not only provides the latest technological solutions but also ensures that all affected employees have the skills to use them effectively. Training and workshops should be offered early and on a broad scale. 

• The choice of the right technology and infrastructure for your company determines how efficiently digital solutions can be used in daily operations. Rely on experts and take your time when selecting technological applications that will work well for your specific organisation. 

• Once the technology is in place, existing organisational processes must be adjusted accordingly. Agile restructuring and the smooth integration of legacy systems play a crucial role in this. 

• Even the best digital transformation will miss the mark if it does not take the customer into account. Always keep your customer groups and their key interests in mind and provide digital interfaces for your customers as well. 

• Digitalising your organisation also requires an orderly and, above all, legally compliant data management system. Customer data must be protected, and organisational data must be used effectively. 

• No innovation is without risks. Effective risk management is essential in the course of digital transformation and can help prevent unpleasant surprises that might not have been predictable based on previous legacy structures. 

The Internet of Things (IoT) also plays a key role in digital transformation. IoT refers to a network of “smart” devices and systems that communicate and interact with each other without human involvement. As such, IoT is especially relevant for making corporate structures more efficient. Smart logistics, smart warehouse management, predictive maintenance, automated approval processes, and smart machine servicing are already transforming the daily operations of many industries. 

If you want to prepare your company for successful digital transformation and make it resilient for the future, the knowledgeable, effective, and efficient use of IoT technologies is absolutely essential. A sound understanding and the strategic use of connected systems help to optimise processes, unlock new potential, and respond flexibly to market changes. Those who keep an eye on technological developments lay the foundation for sustainable economic success.