The importance of using digital transformation
Posted on Oct 07, 2021 at 07:10 AM
The amazing development of smart devices, machines, and systems will reduce time and costs, achieve greater flexibility and efficiency in the production process, great capacity in processing data and artificial intelligence. These developments will expand development and change and bring unprecedented transformation in the economy, the labor market, and the industrial sector.
The concept of digital transformation:
It is defined as the transition of government sectors or companies to a business model based on digital technologies in creating products and services innovation, providing new channels of revenues that increase the value of their products.
Steps of Digital Transformation:
It starts with building a digital strategy and improving the status quo by measuring current digital capabilities and identifying the best business structure of digital marketing activities in the institution.
After that, requirements of investment plans and barriers of digital integration are determined in order to create a comprehensive plan for all circumstances. Finally, it is necessary to have change management for digital transformation, because it is a key requirement to achieve strategic objectives.
The benefits of digital transformation:
- It saves cost and effort, improves and regulates operational efficiency. It also improves quality and simplifies procedures to provide services to beneficiaries.
- Digital transformation helps government and corporate organizations to expand and spread reaching larger customers and creates opportunities to deliver innovative services.
Digital transformation is a necessity to improve the efficiency of institutions:
It links government or private sectors together where joint actions are implemented with high flexibility. The need for a digital transformation has become more urgent, and this is basically because of the rapid development of using information technology tools in all domains of life, whether related to transactions with the government or the private sector, or individuals.
Digital transformation governance:
The governance framework includes the regulatory relations package, auditing and accounting laws in the institution, and the need to provide an integrated system of performance measurement standards. The institutions seek to provide homogeneity between their various administrative units through the government of its internal and external operations.
It is a clear way to facilitate business in a way that keeps pace with development and ensures a proportionate balance among stakeholders, achieving strategies and objectives and creating promising opportunities.
Application of digital transformation:
It is applied through:
- Technologies: It is built by using a system of hardware, operating systems, storage media, and software. It requires ensuring a suitable level of service for members, customers, and suppliers in the institution through hiring professional teams responsible for managing the technical system and network infrastructure, whether this system is local or cloud.
- Data: Institutions should undertake data management and analysis efforts effectively to provide reliable and complete quality information and procedures, also providing and developing appropriate tools for statistical analysis, data search, and forecasting of the future.
- Human resources: They are a vital aspect that facilitates implementing digital transformation in the institution. It is important to hire qualified cadres capable to use and analyze data in order to make effective decisions. It is required to plan visions with a belief in change and development.
- Operations: It is a set of organized and interconnected activities or tasks that produce a particular service for the beneficiaries. Organizations must establish an effective technical structure to develop internal and external processes and to ensure the optimal application of digital transformation. This includes internal and external adaptation and oversight.
Barriers of digital transformation:
Lack of competencies capable to lead digital transformation and change programs within the institution, and the lack of budgets allocated to these programs will limit their growth. Fear of information security risks as a result of using technical means, is one of the biggest barriers, especially if the assets are of a high value.
Digital transformation in the future:
It helps to change business practices in many sectors; such as oil and gas, banking, retail, tourism, and manufacturing into modern methods that can create new and innovative jobs to contribute to significant economic growth.
Conclusion
Digital transformation provides huge opportunities for government institutions and private companies in various aspects and helps to achieve the objectives of the institution and connect them to their strategic vision with fewer capabilities. Digital transformation will help to improve industrial progress and use materials more efficiently. It will also provide greater opportunities after the opening of public-private dialogue and partnership with all ministries.
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