According to IDC, an analyst firm that offers global, regional and local expertise on technology and industry opportunities and trends, digital transformation is the process of transforming decision making with technology. They break it out into three categories:
1. Transforming: New sources of innovation and creativity to enhance experiences and improve financial performance. (Simply modernizing the technology underpinning existing systems is not transformation.)
2. Decision Making: Using information to create an evidence-based culture. Companies should plan on doubling the productivity of their knowledge workers by using information more effectively.
3. With Technology: Digital transformation is not to be confused with digital technologies. But it does use third-platform technologies, such as cloud, mobility, big data and social – as well as innovation accelerators including the internet of things (IoT), robotics and 3D printing.
The world we live in is a digital, mobile first world – customers with smartphones can buy, browse, ask voice assistance and research anytime, anywhere with just a few clicks. Using social media networks, they can instantly share their opinions about products and services they buy, shaping the perception of your brand in the eyes of others (for better or worse).
The digital-first revolution was already well underway before the pandemic. And especially in the wake of the novel coronavirus, digital transformation has taken center stage. For retailers, it’s about using information and new technology platforms to engage consumers digitally and physically in new and exciting ways, while giving retailers the flexibility to keep up and adapt with the pace of change.