Here's what you need to know about digital transformation

With the rapid development of our country's economy, people's material living standards have been rapidly improved like a rocket, making the market development form a clear layered and staged feature, allowing people to differentiate into different groups in this environment , Also formed different interest habits. The Internet and the subsequent mobile Internet have accelerated this change, making it more difficult for traditional companies to compete in the new era, and have also made upgrading and optimization and providing new products and services that meet the needs of people and the market have become the vane of reform.

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In this ever-changing era, convenience, novelty and differentiation are the magic weapons to quickly capture the market. Who would have thought that in just two decades, or even the last ten years, online shopping, take-out ordering, online online courses, The applications imagined in the future, such as video conferencing, are naturally born in the present, and have been applied on a large scale. The emergence of these different application methods has deepened the influence of digitalization on society, and paved the way for the development of data value, digital economy, and digital transformation.

Why Digital Transformation

When it comes to why enterprises need to carry out digital transformation, they have to mention the changes in the current environment. This environment includes social environment, market environment, economic environment, etc. All these will require enterprises to learn to adapt and face the consequences of different environments through a series of transformation reforms. Impact. The change in the environment here is not just a turn for the worse, it may also be that there are new opportunities in other fields. Enterprises have actively chosen digital transformation to obtain greater benefits and follow the trend of the times.

1. Market competition is becoming more and more fierce

After decades of high-speed economic development, while the market size has continued to increase, more companies have participated in fierce competition. In the past, there was only one company or even no company participating in a field, but now it is no longer seen. Some products of the same type may have several or dozens of competitors, and there will only be more companies participating in the competition and falling down.

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If the economy continues to maintain rapid growth and the market scale expands simultaneously, this kind of competition is not unacceptable to many enterprises. But the current situation is that the overall economic development is far worse than before, and the epidemic has accelerated the decline of the economy, which has caused a major blow to the traditional economy. In addition, due to the ceiling of user scale, many Internet companies that have grown rapidly in the past have also begun to face risks. This is only a corner of the current market competition, and more fields have been affected. This is why enterprises must gain sufficient competitive advantages through digital transformation and use business innovation to gain market share.

2. Rapid growth of the digital economy

The word digital transformation is made up of two parts, one is digitization and the other is transformation. In fact, the transformation of enterprises is very common in history, because the development of enterprises is limited by the environment, so they have to change their management methods and concepts according to the environment. And digital transformation is because of the trend of digital development, which makes enterprises need to adapt to digital development and obtain new development opportunities.

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The digital economy has grown to a new level in the development of these years. According to statistics, the scale of the domestic digital economy has reached 45.5 trillion yuan in 2021, and the proportion of the digital economy in GDP has reached 39.8%. Under the premise of sluggish economic growth, it has provided a booster for the economic development of the entire society and provided new opportunities for domestic economic development. Therefore, for enterprises, of course, this opportunity cannot be missed, and participation in market competition also requires an entry point. Digital transformation is this point for enterprises, and it will also provide more cost reduction and efficiency enhancement, business process optimization, etc. opportunities, which are also important for businesses.

The foundation of digital transformation

The changes in the market are just one of them. The growth of the two aspects of data value and digital economy is the root of digital transformation. First of all, according to statistics, in 2020 alone, the scale of the global digital economy has reached 32.61 trillion U.S. dollars, accounting for 43.7% of the total global GDP. Among them, the scale of China's digital economy has reached 5.4 trillion U.S. dollars and maintained a 9.6% rapid growth.

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Then there is the value of data. Unlike the digital economy, data has become the fifth largest factor of production since 2020, and the application of data has been accelerated through various related policies and subsidies, and data-based data centers and cities have been established. New infrastructure such as the brain has laid the foundation for the digital age. In addition, the value of data is also reflected in the application of enterprises. With the help of digital transformation, enterprises can use data to improve their business development level and decision-making ability, and improve their operating efficiency.

Under the influence of digitalization, data, digital economy, etc., digital transformation has been widely used in enterprises in various industries in a short period of time. Although the overall success rate of implementation is only about 20% or 30%, but As long as the digital transformation starts to lay out and build, it will have an impact on the enterprise, that is, redefine the business, technology, management, culture and other standards of the enterprise, and carry out reforms such as digital supply chain, digital marketing, digital management, and digital factory.

Digital Transformation Thinking

Although reform and innovation is a demand that will appear at every stage of time, the extremely fast pace of the digital age does not give much time for reform. In just a few years, digital transformation has changed from a new term that few people pay attention to to state-owned enterprises and central enterprises. As well as a new system that companies in all walks of life are laying out.

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However, although digital transformation has begun to be applied in full swing in the business world, in fact, digital transformation has not yet been truly recognized by most people. There is only one general consensus, that is, digital transformation is not simply digital construction or digitalization Management, but through digital technology, data-based, user-centered, a subversive reform of the entire enterprise, creating a new business model or reshaping the existing business model of the company .

In the process of enterprise digital transformation, user-centricity should become one of the goals of enterprise culture construction. Here I would like to explain that the user-centricity in the concept of digital transformation is not just "treating customers as God", but sticking to customers through digital means such as user portraits, data analysis, market research and demand feedback, and through data mining The needs that users really need but are not aware of themselves create value for customers fundamentally.

data strategy

For the digital transformation of enterprises, data is the most mentioned word. In today's world, as people realize the importance of data and understand the way and significance of data, data assets have become the key for digital transformation enterprises to master and utilize.

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The value of data is not only important but also easy to be used by enterprises. Take the very common data analysis as an example. Through data analysis, enterprises can convert a large amount of business data into knowledge and information, and use these valuable information to gain insights into business development. The entire process is optimized to improve the operational efficiency of business processes. For example, the sales staff found a good sales model through the data analysis of the sales data, and the sales volume has been improved after adjustment.

And the application of data in enterprises goes far beyond the optimization of business processes, and also affects all aspects of R&D and production, the entire mode of operation and management, and the ideological culture that drives development, etc. The data strategy is to integrate data into the blood of the enterprise itself, and empower all the original enterprises through data. With the development of digitalization, the earlier the data strategy is emphasized, the more growth opportunities the enterprise will be able to obtain.

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Origin blog.csdn.net/weixin_44958787/article/details/131420121