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Data and Digital Transformation

Data and digital transformation need to work together. Why? And how? Keep on reading to know more.

Data and Digital Transformation

Today, companies collect and use data to make decisions about many aspects. Their customers, employees, products, services, and suppliers. The need for data is vital in making better decisions. This is why it is important to understand the meaning of data and digital transformation.

Data is information that has been captured, processed, and can be used to make decisions. Data collection starts with the customer. It can be the number of customers visiting a store every day. The total transactions are done in an online store. Or the number of people who watch an ad online. When companies collect this data about their customers, it becomes big data.

All this information in big data gives companies valuable insights on how they can improve their products or services to meet their consumer’s needs and wants better. This is what is meant by data and digital transformation.

Data is the fuel of digital transformation. It is what allows companies to make better decisions about their business.

Digital transformation is a new phenomenon that has been growing over the years. It refers to a change in a business’ way of operations through technology or any other innovative means. Also, it makes the company more efficient and competitive in its industry. It gives them a competitive advantage over their competitors.

Digital transformation allows companies to cater to their customers on a grander scale than before by using data collected from them. It also helps companies improve their decision-making process by using data gathered from different sources that they have not used before. 

This change in customer experience is what makes companies succeed in their industries and grow more revenue every year. Data and digital transformation are closely linked because without data, there can be no digital transformation.

What Kinds of Data is Crucial?

Yes, data is crucial. But not all data is necessary. In fact, not all data is the same. There are different kinds of data. And they are very important in digital transformation. Without them, companies can’t make better decisions about their businesses.

Data is then categorized into 3 major types:

1. Structural Data. – This kind of data includes information about a person’s name, address, phone number, and more that companies need to have a customer relationship.

2. Semantic Data. – This kind of data includes details on customer preferences and behavior that can help companies understand what their customers need and want from them. It also helps companies know more about their customers’ demographics so they can better tailor their products or services to them.

3. Behavioural Data. – This kind of data refers to the activity done by a customer online. It includes how often they interact with a company’s website or app as well as how far they go into a company’s website or app. 

Behavioral data is crucial for digital transformation. Because it allows companies to collect information on customers’ needs and wants from different sources such as:

  • social media channels
  • social media ads
  • referrals from other customers
  • and more

Top B2B Digital Transformation Trends

There are several trends that facilitate the B2B digital transformation and create new dynamics in an evolving market. Find out the best of those trends here. 

Technology

Like in any other project, the desire to execute digital transformation (DT) isn’t enough. You must acquire and successfully deploy the right technology to be successful. Moreover, management and maintenance skills are also a must. 

However, there is a skills shortage in the IT sector. As result, B2B companies began exploring external possibilities. This has put a deeper emphasis on cloud-based solutions, managed services, and automation. 

Artificial intelligence (AI) continues to be increasingly important. Yet, many organizations still view it as a conceptual technology that may be of interest for years to come. They are still waiting for viable use cases from AI implementation at other companies. Until that time comes, their IT spending will focus on other areas. 

Automation is another popular yet necessary technology in the B2B digital transformation. Many companies have already begun implementing robotic process automation (RPA) projects. RPA is popular in almost any industry due to the many benefits it brings. 

It’s crucial to start small with AI instead of viewing it as a magnificent concept. Starting small builds the confidence and momentum needed for changes. Moreover, B2B companies often achieve faster results in doing so. Concentrate on areas with existing capabilities. Furthermore, clearly define your objectives and acquire executive buy-in to yield quick wins. 

Content 

Consumers don’t recognize B2B companies as much. Content and the creation of brand narratives may strengthen your digital presence while fostering brand recognition. Moreover, it may widen your audience reach and create more brand loyalty. Furthermore, publishing great content establishes your company as a thought leader and expert in the field. 

Leverage this trend by implementing a clear content program. It must define all the necessary aspects that customers will need to make purchasing decisions. This move will result in revenue. 

Data

Data analysis is essential in B2B digital transformation and in understanding your customers better. It will enable you to make better decisions like where to make investments in people and technology. Many companies believe that the more data they have, the easier it is to extract actionable insights. 

While that may be somewhat true, going overboard on collecting data won’t bring anything good to your company. This means you need to extract value from the volumes of data you collect. Otherwise, you’ll turn into a “data-rich, intelligence poor” company. 

The objectives and the resources to implement data analytics must be clear. Furthermore, user and stakeholder requirements (e.g. people that will handle and analyze the reports) will influence the selection of software and services. 

Customer Experience/Engagement

The most important goal of DT is to make customer service better, faster, and modern. This includes finding where your customers are and giving them a personalized experience. 

Marketplaces

The number of marketplaces is rapidly growing. Thus, it is crucial to maintain the integrity of your products that are being sold by third parties. This means you need to implement continuous monitoring, oversight, and diligence.

Digital Transformation Case Studies

Are you having doubts about transforming? Are you struggling in developing a strategy? Let these digital transformation case studies help you. 

The COVID-19 pandemic has made digital transformation (DT) a means for survival for companies. We’re now living in an “automation first” era. Businesses and employees now use software robots to increase efficiency, free employees from mundane tasks and generate better revenue. Who knows – maybe every human will each have a software robot of their own. 

Implementing DT requires a change in mindset and culture. Moreover, it is a complex journey that requires careful planning. Hence, the best way to develop a DT strategy is to learn by example. This article features digital transformation case studies that highlight the benefits of transforming and the consequences of failing to do so. 

Nokia 

The company began as a paper mill in the late 1800s. In 1967, Nokia merged several jointly owned businesses to form the Nokia Corporation. The company launched the world’s first international cellular system in the early 1980s. Nokia released some of the first mobile phones. However, those phones were heavy which made mobility a little uncertain. 

Things were really going well for Nokia. By the late 1990s, they were the world’s top cell phone provider. Furthermore, Nokia achieved paramount success due to its investment in research and development (R&D). 

Moreover, they were even the first to develop a touch-screen, internet-enabled phone. In 2007, Nokia hoarded over half of all the profits in the mobile phone industry.

However, Nokia dominated not because of their smartphones. Nokia let other phones like Apple and Google surpass them. Users wanted phones with better software and improved user experience. Nokia was not able to provide that as they believe their hardware would keep users loyal. 

This shows that your success today does not guarantee your success tomorrow. You must be willing to depart from success and unafraid to take risks if it would mean innovating. Failure to do so will lead to failure, even for the biggest companies. 

Unilever

Unilever is one of the biggest companies in the consumer packaged goods (CPG) industry. However, the industry has been experiencing a steady decline since 2013. Unilever acknowledged this change and started pulling away from its declining food business. After 2010, the company moved toward health and beauty. 

Traditionally, companies buy customer data from market-research firms. However, Unilever broke the norm and built its own database. They gathered anonymized information from different sources like store loyalty cards, customer registrations, and third-party sites. As result, Unilever got over 900 million individual customer records. 

Hence, the company now has a massive amount of data to back up its DT and product development strategies. This has enabled Unilever to spend less and sell more. 

What can we learn from Unilever? Disruption won’t end. Thus, your willingness must not stop, too. Moreover, Unilever focused on efficiency and implemented new technologies. You must also be prepared to adapt continually.

These digital transformation case studies taught us that innovation will either make or break your company. 

Digital Transformation Data Strategies That Will Make You Successful

How is digital transformation data fueling your success? And what are the best strategies that can help you? Read this article to find out.

Digital Transformation Data

Which would be desirable? Would you like more customers or satisfied customers?

Satisfied customers are, of course, the ultimate option. Because satisfied consumers eventually attract customers, kicking off a massive growth spiral.

So, how can companies make their customers happy? The answer lies within data. 

Companies are changing how they interact with customers. And the key to a proper engagement is using data analytics.

No doubt, businesses of all sizes are leveraging the power of data. That’s why many engaging innovations and tools are fueling digital growth.

Companies with big data history are happy with business success. But they are still struggling. They also find it challenging to comprehend how to turn data into valuable insights.

According to the report, 92 percent of companies are happy with the business results enabled by data analytics. And about all (94 percent) claim their big data adoption fits their goals.

Every company focuses on actual data. So, it can support its business systems and practices. Analytics is a key driving force for digitalization now.

Business leaders are also making better-informed strategies. And it enables them to make customer-centric decisions as a result of this.

As per Gartner, data analytics are the biggest factor of an organization’s transformation. Modern big data analytics assist organizations, too. 

For one, it helps in creating analytical tools better and more efficiently. So, it gives them a strategic strength.

DX not only accelerates and enhances business operations. It also opens up new growth plans.

We have compiled a list of key points to explain how big data is driving digital transformation.

Digital Transformation Data Strategies

Retaining Existing Customers

You may have a large customer base in your account. But if you do not meet their demands, your business will struggle. But, it is vital to get consumer habits data and give on what your customers expect.

Netflix, for example, uses Big Data to save $1 billion each year on member retention.

Big data analytics helps to check a variety of consumer patterns and trends. Keeping existing consumers is much more cost-effective than acquiring new ones.

Easily manages risks

Big data analytics gives you access to big volumes of user data. Whether it be historical records, previous transactions, or actual data. Big data analytics controls concerns effectively and fluently.

It gives risk analysis solutions to companies. At the same time, it enhances the accuracy of risk analysis models. With the help of big data tools, businesses can now easily and quickly analyze and estimate risks.

Businesses can benefit from big data analytics by monitoring customer buying habits. They can now foresee and plan for unforeseen events.

Conclusion: Data Fuels Digital Transformation

Data has the potential to transform industries and drive growth. How? By identifying future business trends. 

Data analytics projects have risks and challenges. But, it also has many benefits.

Regardless matter which industry you are in, data analytics can help you. In implementing digital your business by boosting your business activities. Then, using the changes and opportunities created by digital technology.