Digital Transformation: Definition and Best Practices

You may have heard the phrase “digital transformation” being thrown around at business meetings or on the web, and thought it sounded vague and mysterious. We’re here to remove the mystery from this phrase and reveal what it means for a business to undergo a digital transformation.

As the name suggests, when you embark on a digital transformation for your business it means getting rid of outdated technology and getting started on a path of strategic innovation. Assessing and modifying digital technologies to make improvements in efficiency, cost, and user experience is a critical part of this transformation process. But, technology isn’t the only thing that evolves in a digital transformation, cultural shifts happen, too.

Organizations that leverage modern technological advancements to improve their business are able to innovate, and make their digital transformation a crucial turning point in their success.

In the aftermath of the Covid-19 outbreak, many businesses around the world were forced to innovate to survive, or else risk irrelevance and obsolescence. Businesses were pushed onto a path of digital transformation by the pandemic, with many of the most successful organizations placing new focus on web user experience, cloud capabilities, and remote-friendly technology. 

Innovative companies were able to take the problem that Covid-19 presented, and rework it into a solution for their business. It became a cause for modernizing technology, and still continues to spark digital transformations today. If an organization is unable to keep up with the pace at which their competitors are innovating and growing in the face of a challenge, it will undoubtedly falter. In today’s technological landscape, digital transformation is becoming inextricably linked to a business’s ability to survive. 

Prioritize innovation

In order to create an environment where digital transformation can be possible, organization’s must make a point to prioritize innovation and modernizing technologies. This is easier said than done, so for many companies there needs to be a shift in culture and the way that teams view change. By being open to new technologies, strategies, and processes that will help the organization thrive, IT and business teams can stay ahead of the game, preventing friction that will cause delays.

Focus on the customer

An effective digital transformation should start with figuring out what the customer needs, and implementing changes that will improve their experience. Maybe that means spending some much-needed attention on your mobile site, or doing some tests to make sure that your application isn’t lagging. Either way, the customer experience should inform the priorities of your organization’s digital transformation. That means innovate, lose your customer base to more digitally-advanced competitors.

Align IT teams and business teams

Clear, effective communication across teams is critical for a successful digital transformation. While your organization is modernizing its technology and shifting into new processes, there are bound to be some hiccups or unexpected obstacles. IT teams that communicate well with each other, as well as businesses teams, are able to align more quickly on projects and tackle business-critical tech updates with ease. Additionally, you want to make sure that IT teams clearly understand the business goals behind your digital transformation, which is where business analytics can help.

Use business analytics to measure success

Your digital transformation strategy should leverage BiQ data to your advantage. Business performance monitoring can help provide some much-needed context for organizations that need to modernize and pay close attention to customer needs. By gaining insight into the user journey and customer interactions with your site, IT teams are armed with data to support an effective digital transformation. If any aspect of your site is causing difficulty for customers, business analytics give you that knowledge at your fingertips so you can implement new technology to fix the problem.

AppDynamics Business iQ delivers business performance monitoring and observability for every layer of your tech stack, so that you can work as one to prioritize what matters most. Surface only the most relevant insights so you know what issues to fix first, what to rebuild, what to expand, and what to optimize. 

With AppDynamics Business Performance Monitoring, you can: 

• See your data through the lens of business impact to prioritize business-critical issues

• Use business journey mapping to see how your end-user experience translates to your bottom line

• Release updates and new efficiently with release validation metrics