Companies embrace the idea of digital transformation for the many benefits that the strategy has in store for them. 70% of businesses have a digital transformation strategy or are thinking of incorporating it. In the coming days, almost half of technology expenditures in companies will be directed towards digital transformation.

Companies that have invested in digital transformation have had success in creating new business models. These companies are looking forward to getting value from the transformation and know that it will play a significant role in their operations and even customer satisfaction. 

What is digital transformation? 

It entails the incorporation or integration of technology into the different areas of business operations. This is intending to transform the way businesses operate and provide value for their customers. 

Digital transformation focuses on four main areas: technology, process, data, and businesses' ability to make organizational change. Technology is the driver for digital transformation. Data, on the other hand, plays the role of the fuel. The process determines the system that supports digital transformation, and the ability of an organization to embrace change determines the success of the digital transformation. 

The four components should therefore work together to enable digital transformation. With this in mind, you will have a better understanding of digital transformation definition.

The four steps of digital transformation

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Importance of digital transformation

Digital transformation is imperative for businesses, regardless of the size. Why is everyone going digital? Well, digital transformation allows companies to use technology and innovation to give their businesses traction.

It is an opportunity for businesses to enhance their processes, increase their productivity and achieve higher customer satisfaction. By getting digital transformation services, you will be growing your business and increasing your competitiveness.

Advantage of Digital transformation

Both small businesses and large corporates are keen on investing in digital transformation. Many companies are already transforming, and others have it in their pipeline. This is an indicator of how imperative it is.

Digital transformation goes a long way in changing how businesses operate daily, their processes, systems, culture, and workflow. 

Here are the benefits companies that are keen on digital transformation are enjoying.

1. Better insights on customers

Data is valuable, and more so, that of customers. Note that businesses exist because of customers and their operations aim at giving value to their customers. Data plays a huge role in helping companies unlock ways to satisfy their customers.

Digital transformation looks to refine data, organize it and manage it for better analytics. The use of structured and unstructured data gives companies valuable customer insights that help them make informed decisions and strategies. The insights support the delivery of value and business growth. 

2. Increased profits

Digital transformation has made it possible for businesses to realize improved profits. Remember that for a company to be profitable, it should satisfy its customers and efficiently manage expenses. 

The transformation ensures the efficient use of resources. Businesses that have completed their digital transformation process have reported an increase in their profits. 56% of CEOs have stated that digital transformation improves revenue.

3. Improved productivity

Productivity contributes to employee motivation, customer satisfaction, and revenue. A successful digital transformation strategy will enhance productivity across all departments. 

We are talking about quick turnaround by using eSignatures and signoffs, automated HR systems, data use for HR management, and optimizing the customer experience.

Digital transformation does not only increase revenue for your business. Its impact is felt across all operations.

The Benefits of Digital Transformation

Digital transformation challenges

While digital transformation comes with all the mentioned benefits, the strategy's success does not always come easy. Here are some of the challenges that businesses face.

1. Barrier to change

One of the biggest challenges faced during digital transformation is employee pushback. Resistance to change is something that businesses face anytime they try to change the status quo. Employees and other stakeholders often love to be comfortable and introducing change breeds some level of doubt. 

To combat the challenge, there is a need to be open with stakeholders and involve them in the process. Educate your employees on what the transformation means and how it could be beneficial to the organization. This will go a long way in bringing them onboard.

2. Budget constraints

Budget constraints have barred most businesses from successfully implementing digital transformation strategies. The process usually requires significant investments in technology and even expertise. 

You can work with a digital transformation solutions provider to help you point out your company needs and help you come up with a reasonable budget. This way, you will be able to implement your strategy without hurting your cash flow successfully.

3. Lack of expertise

A lack of talent can be a barrier to digital transformation. It may be hard to deliver the strategy or transformation strategy if you do not have the talent to implement it in your organization.

The best remedy for this is working with skilled digital transformation services providers. Working with an unskilled team may have financial implications and discourage the process and consume a lot of time.

Why you should outsource digital transformation

Organizations outsource digital transformation more often than they do it themselves. Through this, they can ensure time and cost-efficiency. 

1. Skilled workforce

Outsourcing allows businesses access to more manpower, which lifts the burden from their IT departments.

It is also a way of avoiding lack of talent, which is a significant barrier to digital transformation. Outsourcing companies have a mix of skilled experts capable of handling complex and various digital transformation domains. 

2. Better security and technologies

Outsourcing companies have a dedicated workforce and high-end technologies that guarantee the success of the project and security. They are also aware of potential risks, and they can mitigate them early enough.


All businesses need to prioritize and invest in digital transformation. It allows them to enhance their competitiveness in the market and enhance their businesses. That is from improved productivity to enhanced value delivery to customers.

Like many other projects, digital transformation is faced with risks such as resistance to change and shortage of resources. Outsourcing digital transformation services will ensure the success of the project.