What is Digital Transformation?
Digital transformation is the integration of digital technology into all areas of a business which results in fundamental changes on how businesses should operate and how values are delivered to the customers. It is also a key component of an overall business transformation strategy, and while not the only factor, it is decisive for the success or failure of any industry/enterprise. In order for organizations to adapt quickly, meet new and evolving customer needs, drive future growth and innovation, people, processes and operations are all necessary. An organization must be able to rapidly adapt through the adoption of new technologies in order to remain competitive in a constantly changing global marketplace.
The importance of digital transformation for your organization.
The importance of digital transformation for your organization.
As we enter into this new decade, it has become increasingly apparent that if businesses are to grow and compete, they must take steps to become more resilient, competitive, and responsive. Companies must develop and transform their digital landscape – Beginning with raw materials and the earliest supply chain tiers, to meeting rapidly changing customer demands for more personalized service, to modernizing and innovating traditional business models. Since the pandemic, there is a palpable sense of urgency among business leaders to digitize and modernize their processes and legacy systems. Therefore businesses that leverage digital tools to embrace a more agile, flexible and customer-centric approach will be more successful in dominating their market at this present scenario and also into the future.
Business innovation and three main aspects of digital innovation
Today’s organizations face increasing competition and customer demands that require their operations to become more streamlined and efficient in order to stay competitive. A main objective of digital innovation initiatives is to help business teams and leaders succeed by increasing their efficiencies and streamlining their operations. New technologies play a central role in uplifting the transformation, but so do business processes, business models, organizational culture, and receptiveness to digital innovation.
Any business transformation plan should look at these three areas:
Business process transformation: Long-standing processes and workflows must constantly be modified to meet evolving business objectives, competition, and customer demands.. Business transformation and digital innovation are often synonymous to digital transformation. Digital innovation, on contrary, is part of a technology framework that lays the groundwork for transforming a company’s processes.
Business model transformation: The transformation of business processes and tasks addresses the changes to workflows and tasks, while the business transformation models addresses how value is created in specific industries. Companies have been transforming their traditional business models as a result of digital automation.
Organizational and cultural transformation: Adapting digital innovation to the organization’s culture and values is crucial for success. Neglecting to adopt new digital technologies could result in missed targets, a loss of competitiveness, revenue, and brand value. Additionally, a loss of faith in corporate culture can impact employee performance, initiative, and well-being.
Technology transformation enables business transformation
Businesses should digitize information and processes, improve efficiency, and have an online presence for business innovation, but these are just the tip of the iceberg.
It is technology that has the potential to help you continuously re-imagine what you offer and how you offer it – by shifting how teams collaborate, finding entirely new products and services, and addressing customer needs better, and thereby delivering more instant and personalized experiences.
Digital Transformation Strategy
The new computing infrastructure that enables businesses to do this includes:
- Cloud technologies
- Advanced Analytics with mobility
- Big data with Modern ERP
These core technologies are enhanced by data and insights derived from technologies including:
- The Internet of Things (IoT)
- Advances in AI and Machine Learning
- Innovations like Blockchain
How SAP Digital Transformation helps in Business Innovation
As a leading ERP software for SMEs, SAP Business One continues to evolve into a highly configurable and extensible platform.
The SAP digital transformation strategy provides businesses with a secure and comprehensive ERP solution. It integrates cutting-edge technology to create an ecosystem of customizable, powerful software.
Cloud and Mobile
For a successful enterprise digital transformation of your enterprise, cloud based infrastructure is a crucial component. With central access to all systems, organizations are able to scale infrastructure as needed and rapidly automate and change workflows.
SAP Business One, a flexible, cloud-based solution, your business can access in the public or private cloud via a browser. With the solution, you can access the web-based interface from any device, as well as use native apps with Business One data to offer mobile-specific capabilities for collecting and analyzing sales activity on the go.
The power of advanced analytics comes from combining AI and ML algorithms, which provide insightful reports accurately. Businesses are also able to customize their data analysis configurations according to their needs. This gives decision makers the power to act quickly and decisively – by seizing an opportunity or responding to risk.
SAP Business One version for SAP HANA includes dashboards, interactive analysis and semantic layer for quick and easy reporting instantly. Integration with Business Intelligence tools and resources provides access to data visualizations and analytics. In-depth reporting and analytics is possible through tools including MS Power BI, MS Excel and SAP Business One HANA Analytics.
AI and machine learning were jointly developed alongside Big Data and to process it both of them are required. To provide accurate and meaningful outcomes, both must have large enough data sets for learning and analysis. Hence the association of Big Data, ML and AI add up for Enterprise Digital Transformation Strategy and a successful business innovation.
SAP B1 on SAP HANA enables you to bring unstructured Big Data into one view for analysis, including:
Cash Flow Forecasting: Graphical display of your cash flow, including the ability to manage cash flow forecasting and cash flow timeline estimates in real-time. Quickly configure the dashboard reporting to your requirements based on standard configuration settings. The business benefit – instant access to a better view of your cash flow and cash flow forecast.
Advanced Available-to-Promise: Get transparency about your inventory dynamically, in real-time to minimize costs and improve customer service. When a customer calls your service team they can get answers about inventory availability at the click of a button. What stock is available? When is it being shipped? When is new stock arriving? SAP Business One can provide answers for all these.
Enterprise Search: Locate your business information via freestyle search, and drill down to the documents based on multiple search criteria. The business benefit – instant access to information to keep your team and your customers up to date.
Predictive Analysis: Use Forecasting strategies within your Dashboards to predict future and seasonal trends based on your historical data. The Material Requirements Planning (MRP) module can use these forecasts to help with purchase planning. The end result making sure you hold the right inventory levels to provide great customer service and not lose cash in “over-stocking”.
Though machine learning is still maturing, businesses should work with trusted providers like SAP who are developing solutions to leverage information and evaluate data for machine-based insights and automation. Business One version for SAP HANA includes a predictive analytics module that analyses inventory levels. It optimizes demand based on customers’ purchase history and built-in sales recommendations. Similarly, adopting them gives your organization a firmer footing to explore the IoT or other emerging tech like blockchain.
Enterprise Digital transformation benefits
A modern business integrates every aspect of its operations with the help of digital innovation. Intelligence technologies help in providing the tools necessary to survive and flourish in digital automation.
- Delivers deep insights to inform real-time decision-making: For many businesses, tracking performance and ROI is usually a backwards-looking process. The window of opportunity has long since closed by the time data is gathered, processed, and manually analyzed. With a modern ERP system, businesses can see real-time data and customize powerful analysis algorithms and make timely decisions.
- Improves efficiency and productivity: With the use of advanced analytics, IoT devices and machines constantly send data, machine logs, and performance reports. Hence these data can support predictive maintenance, lower downtime, and improve productivity and workflows.
- Enhanced user experience: Business innovation is beginning to embrace new technologies not just because of their efficiency, but also because they simplify interfaces and provide a more intuitive interaction experience for workers. Enterprise applications with inconvenient user interfaces can make work more difficult for employees, even if the back-end is efficient.
- Helps drive business model innovation: The focus on business model innovation as a means to create value is no doubt increasing in response to changing consumer and market expectations. It is however essential for companies to be able to analyze and implement real-time data. This helps to change business, payment, customer experiences, as well as develop automated and intelligent processes to manage these changes.
However companies today are planning and transforming into digital automation and business innovation processes, and re-imagining their working universe. Having one of the best ERP software supports them on this journey by providing a robust solution that facilitates their business growth while being configured to fit their exact company needs now and into the future.
SkySurge being a Value Added Reseller serving SMEs for more than a Decade, assists you in creating an appropriate business model for your organization. The combination of the above-mentioned capabilities allows the SAP B1 customer to achieve the vision of the “Digital Transformation”. This will help customers empower their employees by doing more with less, and innovate faster than the competition. It also delivers a best-in-class experience to their customers, and breaks new grounds. It introduces new revenue streams and market opportunities. SAP B1 is the ideal inflection point for businesses ready to grow. The solution will support your business to make the transition to a more digitally-enabled business. Helps in cross-functional teamwork, leveraging data, fostering innovation and embracing emerging technologies as they arise.