Business Transformation in the Conditions of Digital Economy

The uncertainty of the external environment, the high speed and continuity of technological changes, as well as new scientific discoveries have become part of the daily life of society and business, regardless of its scale, the field of activity, and territorial location. Since 2010, the Fourth Industrial Revolution and related technologies have become the main driving force behind the world’s most important technological, socio-economic, and environmental transformations.

The topic of digital transformation has entered the strategic agenda of the largest corporations. Furthermore, the COVID-19 coronavirus pandemic has given an additional impetus to digitalization projects in the segment of small and medium businesses. Therefore, if you are looking for effective digital transformation solutions, you can hire swift developers right now and bring the most original ideas to life.

This article details the tools of the business transformation process, its features, benefits, etc. Try to read the information carefully. 

Features of the Organization of Business Processes in the Context of Digitalization

Digitalization involves transitioning business processes to a digital environment using modern information technologies. This includes the simplest business processes, such as:

• Conducting various events (meetings, conferences, seminars, personal interviews) through video communication;
• Ordering goods and services without physical presence when making a purchase;
• Consulting and customer support through Internet channels, messengers, and social networks;
• Advertising of products with the help of virtual and augmented reality, informing about the services and activities of the enterprise through a site, etc.

Tools of Business Processes Digitization

The transition to a digital environment involves an all-encompassing and large-scale phenomenon that affects all aspects of the business organization’s activities – digital transformation. This phenomenon is considered a process of transition to a new level of doing business, with a change in models of functioning, management, and business processes.

The manifestation of business processes digitization can be expressed using the following tools:

• Information and communication technologies for unified communication and independence from the place of residence (Zoom, Viber, Telegram, Skype, WhatsApp);
• Software products (BAS, BAS ERP, Bitrix 24);
• Technologies of electronic data exchange (EDI – Electronic Data Interchange);
• Methods and techniques of analysis and processing of big data (so-called Big Data technologies);
• Cloud and fog computing technologies;
• Intelligent technologies such as artificial intelligence;
• Implementation of hybrid activity solutions.

Key Advantages of Digital Transformation for Business

The purpose of digitalizing business processes is to optimize the available resource potential and work time costs and increase the efficiency of business processes. This, accordingly, leads to an increase in the efficiency of economic activity.

Among the main advantages of digital business transformation, the following can be distinguished:

• Remove bureaucracy in internal business processes;
• Reduce time spent on processes at the enterprise;
• Optimize (reduce) the number of employees and hierarchical levels in the organizational structure;
• Transfer paper document flow to electronic cloud systems;
• Increase the speed of processing customer requests and, accordingly, their service;
• Increase consumer loyalty;
• Reduce advertising costs by abandoning such expensive types of advertising as billboards and TV advertising, as well as start using a much cheaper type of advertising in social networks;
• Automate the generation of reports and control each stage.

Areas of Business Most Affected by Digitization 

Different areas of business are changing under the influence of digital strategizing. Firstly, it concerns marketing lead generation strategies and interactions with consumers. It is primarily about digital marketing, which uses digital channels to attract and retain customers.

Competitive strategies are changing. Pioneers and their immediate successors usually win in the digital economy. They open the market for consumers based on innovation. As technological leaders, they conquer the market and convince consumers of the advantages of their product even at the stage of new product development.

HR strategies are adapting to change. The main focus is on the smart working model, which uses new technologies to increase productivity and employee satisfaction from work, including remote and digital workplaces.

Innovative strategies are also undergoing changes. For example, Digital technologies can become the basis of new competitive advantage. For example, a new quality of customer service due to access to global digital platforms, gaining access to new customer databases and new technologies, etc.

Negative Consequences of Business Digitization

Despite a number of positive aspects, the digitalization process entails negative consequences. They especially concern society:

1. Increase in unemployment (emergence of a whole class of ‘extra’ people, total retraining of personnel, destruction of usual mechanisms of ‘guarantees of the future’ (decent pension, guaranteed social security, etc.));
2. A decrease in the level of the general well-being of the population and, accordingly, the solvent demand. This, in turn, can lead to a slowdown in the development of certain sectors of the economy.

Conclusion

Digitization does not consist of the full implementation of technologies but of the deep transformation of business strategy. This is a complete renewal of the current business model, rethinking the activity’s mission, processes, tools, and means. A business can choose any direction of development, guided by its mission and available tools for influencing processes. 

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