Posted BY:
2020 took an unexpected turn with a little virus called the coronavirus that somehow revealed to be a much bigger problem than initially expected. The current COVID-19 has been allowed the leading digital business to further succeed while the other businesses had to go through digital transformation.
Of course, not every business was able to succeed like Airbnb which almost lost the entire business that it spent years building. Although tough news, the reality is that numerous people have lost their jobs due to the pandemic and now businesses have to either adapt towards digital transformation or see themselves slowly fade into losing the economic challenge.
COVID-19 has affected businesses in general around 5 different specifics. These specifics have resulted in businesses being pressured to transform. Now is the perfect time to break traditional businesses (if followed) and move towards following the leading digital companies.
What has Changed Because of COVID-19?
Physical businesses
Limitations. Now because of the different set of limitations, the way a physical business like a restaurant, a retail store, or even a laundry store does business. The once fool-proof practices of solid traditional business have now been the very reason that these businesses are suffering.
Consumer Mindset. Due to the change in mentality due to the rampant COVID-19, even the consumer mindset has become a bit more direct as consumers try to get directly in contact with the products or services they want through online platforms. The leading digital businesses have been able to capitalize on this. Currently, Amazon is one of the richest companies due to the pandemic.
Advertising
Mode of Purchase. Pre-COVID-19, people could simply walk around and if they spotted something, they would then either buy the product or avail of the service. Nowadays, with the limits on tourists as well as the limitations on consumers not just in what they purchase, but HOW they purchase.
Consumer Behavior. The change in consumer behavior has prompted the need for digital transformation for every type of company that aims to stay in business. Without advertising through the digital platform, this could cut the regular customers of any business by a significant number.
Communication
Mode of Communication. The way people communicate has become different. Instead of simply dropping by to inquire, most consumers try to search online for the perfect product and if a business does not have a strong online presence, they fall behind.
Communication Transcations. Communication is very important in business not only as a form of advertising but also the transaction itself. With a more traditional transaction (long lines and etc.) this could probably turn off impatient and more convenience-seeking customers.
Supply Chain
Deliveries. COVID-19 has also changed the way businesses source out their products. For the food industry, instead of being able to scroll down through the grocery everytime a particular product has to be sourced, having the produce delivered has become one of the more practical moves.
Logistics. Although the logistics business has grown during the pandemic, not being able to take advantage of the whole have-everything-delivered platform could cost a company a significant amount of money.
For some businesses, digital transformation is one of the hardest things to do. This is why there are certain leading digital businesses that focus specifically on digitalization. A common misconception is that what leading digital businesses do with digitalization is just for the customer’s end.
The truth is that digitalization covers all edges and even allows the system to run smoother within the whole parameter of its functionality. There are a number of advantages of digitalization that are undeniably good for business.
What is the Role of digital transformation?
1. Efficiency of communication
A business runs much better when better communication is established. Not only does digital transformation allow businesses to better communicate with their customers, they also allow employees within the business to better communicate with each other.
2. Wider audience reach
Digitalization allows a business to reach a broader audience since it is no longer limited to the physical location of the business only able to cater to customers around the area. With a better online platform, businesses will be able to better reach a bigger audience and gather more potential customers.
3. Simplification
While the common misconception is that technology complicates everything, although it may do so to an extent, digital transformation actually simplifies a lot of things making the whole business easier to run as well as smoother to manage.
The big question remaining is how does digital transformation take place? With the help of the leading digital businesses, most traditional businesses can ask for consultation, advice, and help on how to digitally transform the business.
Although this might not be an easy task to do, the benefits of digitalization, as well as the disadvantages of not going digital due to the COVID-19, are good enough reasons to do so. With no clear timeline as to when the COVID-19 pandemic’s effect will end, businesses are now advised to undergo digital transformation.
How Does Digital Transformation Work?
Understanding the business
In order to properly digitize a business, what needs to be done first is to understand the business by dividing it into parts and looking for a digital substitute for all of these parts. For example, delivery can be outsourced, instead of physical promotion, the monitoring system can be done online, and a few other data-related segments.
Find the right services
Once the parts that need to be digitalized have been identified, it is important to find out how to digitize these parts. Businesses could consult leading digital businesses that specialize on this service in order to get a better idea.
Begin the transformation process one step at a time
It is important that the digital transformation process is done correctly from the start. Although it might take a while, it is still important to invest in digitalization in order to upgrade your business into the digital world.
ICTS is a Vietnam-based software development boutique that focuses on cutting-edge technologies. We help SMEs (small and medium enterprises) digitize their business and handle the digital transformation in the most professional way, at a reasonable budget.
Contact us and discover what benefits we can bring to your digital transformation project.
Information Source:
Image Source 1:
https://www.pexels.com/photo/man-using-stylus-pen-for-touching-the-digital-tablet-screen-6335/
Image Source 2:
https://www.pexels.com/photo/black-samsung-tablet-computer-106344/