In the most basic sense, digital transformation (DX) is the general application of digital technology to solve traditional business problems. CIO Magazine, however, better defines DX as a necessary disruption. While an apt descriptor, the concept of disruption sparks trepidation for many executives, especially within those who need to move to the digital age. It’s unnerving leaving the trappings of tradition behind, but when your competitors are doing it, the risk of not following suit (or leading the charge, for that matter) can only leave your business behind.
Think we’re exaggerating?
IDC, a premier global provider of market intelligence for the IT industry, reports that worldwide spending on digital transformation will be nearly $2 trillion by 2022 and that by 2020 30% of G2000 companies will have allocated at least 10 percent of revenue to fuel the transition. This is not just an enterprise-level call to action mind you, as IDC also states that two-thirds of SMBs are expected to include DX as a key part of their IT strategies. Simply put, increased digital adoption is no longer a luxury (was it ever?) but a necessity.
If you're already convinced, head over to our Digital Transformation page to contact us today. Read on if you need some more information.
4 Reasons Why Your Organization Cannot Put Off Digital Transformation Any Longer
You’re In An Industry That Needs it Most
Data also defines key industries that need to be especially mindful of DX starting today. Among the four industries responsible for nearly half of worldwide DX spending in 2019 are discrete manufacturing, process manufacturing, transportation, and retail.
If your business falls under the wide umbrella of the above, you need to ramp up the transformation process right away. However, don’t make the mistake of thinking that your SMB is removed from this call should it not fall directly under the top four industry descriptors.
It doesn’t take much to identify a lag in digital transformation. Do you ever experience inventory issues for products or supplies? Have you lost/missed appointments with customers/clients? Are you experiencing staff scheduling conflicts? Can’t track what remote workers are doing? Have trouble finding important documents from years, months, or even weeks ago? Are you not able to take all common forms of online payments? Has there been a data or website breach at some point over the last two years? These are just a few indicators. The list goes on and on, and there’s a good chance that if your business is experiencing any sort of a problem, it can be traced back to poor digital adoption.
The New Kids Are Coming
If retailers had a crystal ball many years ago they would have seen Amazon (etc.) coming, and been able to adapt early enough to keep a bigger piece of the online pie instead of collecting scraps. No matter what your business provides, there is some startup or evolving business, whether a contender or pretender to the throne, that is fully digital and ready to take your customers/clients because they provide more options for product/service selection, payment, delivery, and more.
It doesn’t matter how loyal you think your customer/client base is. A family dentist will eventually lose patients to the new dental clinic down the road that offers advanced digital 3D imaging for improved diagnostic capabilities and treatment planning. Investment firms that take human bias and error out of the equation are attracting customers by using artificial intelligence to help them better manage their money and plan for retirement. These are just two examples that show no matter how loyal, customers will leave if they find their experience and overall quality of life will be improved by transitioning to a brand that leverages technology.
Transformation Means Protection Against Cybercrime
Take a look around our blog and you’ll find that we spend a lot of time discussing cybercrime prevention. It’s within this theme that you may find the most pressing need for digital transformation.
Businesses that depend upon traditional methods of cybercrime prevention still employ antiquated antivirus subscriptions and firewalls, which is why 60% of small businesses continue to get hacked each and every year. Now take a look at this list of the biggest industry targets for hackers in 2019. Within, we’ve identified hospitality, health & medical, retail, and the tech sector, with “honorable mentions” including agricultural production, construction, education, energy, finance, legal, manufacturing, media, real estate, and telecommunications. As a prime target for cybercriminals, the scope of industries that need to increase digital transformation invariably gets a lot wider.
So how does your business mitigate this risk? By leveraging AI for enterprise-level security and advanced threat protection for all business applications, including the ones you’ve depended on for years, such as Office applications (Word, Excel, PowerPoint, Outlook), and other tools. Any endpoint security solution that claims to detect zero-day threats and protect against advanced malware is worthless without leveraging AI to do so.
This is a prime example of how digital transformation will not only help but may outright save your business. In fact, it can be said that DX is required if your company expects to be truly PIPEDA compliant in 2019 and beyond.
Your Supply Chain Is Doing It
A chain is only as good as its weakest link. Is your business the liability when it comes to DX? The vendors, suppliers, manufacturers, processors, and shippers that you depend upon to run a successful business are among those increasing digital transformation in 2019/2020. You need to be on the same page so that the supply chain runs smoothly for all involved. Not only does slow adoption negatively impact the process, but it can also get you blacklisted and should potential negligence (i.e. lag in cybersecurity) result in harm to a third party in the supply chain, you could be held liable in claims court. No matter how you look at it, your business cannot afford to not keep up.
For more information, please visit our Digital Transformation page.
Ready to disrupt operations? Still have questions? At the very least, you can get the ball rolling by contacting Fully Managed for a noncommittal conversation about how we can help with your digital transformation.