Tag: digital trends
Today, technology seamlessly weaves its way into every aspect of our daily lives. That’s precisely what digital transformation is all about – a process that enables businesses to harness the power of cutting-edge technologies and revolutionize the way they operate, engage with customers, and flourish in today’s fast-paced world.
Digital transformation goes beyond a mere trend; it’s a profound shift that can reshape the very core of a business. It allows organizations to metamorphose and emerge stronger and more adaptable than ever before.
In this blog, we’ll embark on an exciting journey to understand the significance of digital transformation, explore its key components, and learn from real-world examples of successful transformations. We will understand why it holds the key to shaping the future of businesses worldwide.
Understanding Digital Transformation
Imagine taking your cherished family recipe and giving it a modern twist with new ingredients, cooking techniques, and flavors. That’s the magic of digital transformation – a process that revitalizes businesses by infusing cutting-edge technologies into their core operations, just like the innovative twist to your traditional recipe!
Which digital technologies enable transformation?
Digital technologies, like cloud computing, Artificial Intelligence (AI), and the Internet of Things (IoT), play a vital role in the business landscape.
The cloud is like a virtual pantry that stores all your ingredients and tools, making them accessible from anywhere at any time. AI acts as your sous-chef, analyzing data, providing insights, and making your decisions more intelligent. Meanwhile, the IoT is the magic ingredient that connects everything, enabling devices to communicate and create a harmonious cooking experience.
The Digital Metamorphosis: Embracing the Ever-Evolving Adventure of Growth
Digital transformation is a thrilling quest to become the best version of what your business is capable of becoming. It’s not a one-time makeover or a sudden transformation, but a continuous journey of growth and improvement. Just like you set new goals and work towards them over time, businesses must shift their perspective from considering digital transformation as a one-time project to embracing it as an ongoing process.
This journey requires a mindset shift – instead of seeking instant results; businesses must focus on long-term gains and stay committed to the process. Digital transformation demands consistent effort and dedication, as every step contributes to overall success.
Benefits and Outcomes of Digital Transformation
The benefits of digital transformation are many, and you will discover more of them as you implement it in your business, but here are a few of its main benefits.
- Enhanced Productivity: Digital transformation ensures mundane tasks vanish from your to-do list, leaving businesses with more time and energy to focus on what truly matters.
- Delightful Customer Experiences: Businesses become experts in customer satisfaction through personalized interactions, seamless online shopping, and responsive customer service.
- Unleashing Agility: Digital transformation enables businesses to respond swiftly to changes and opportunities. They can adapt their strategies, offerings, and operations in the blink of an eye, staying ahead of the competition.
- Unraveling Insights: Digital transformation empowers businesses to harness the power of data, uncovering valuable patterns and trends. These insights guide businesses toward smarter decisions and growth like a treasure map.
- Flourishing in the Digital Kingdom: In this captivating realm, businesses hold a golden scepter of competitive advantage. Digital transformation sets them apart from their rivals, like a crown that marks them as the industry’s leaders. They become the beacon of innovation, drawing customers to their kingdom of products and services.
- Securing the Castle: Digital transformation fortifies its defenses against cyber threats and data breaches. It’s like having a strong shield that safeguards their reputation, customer trust, and sensitive information.
- Sustaining Everlasting Success: Digital transformation is not a one-time invocation but a perpetual journey of growth and adaptation. With every step, businesses evolve and renew their charm, ensuring a legacy of prosperity.
Read more: Is Open Source the Crucial Catalyst For Digital Transformation?
Overcoming Challenges and Embracing Opportunities
A digital transformation journey can empower businesses with the tools they need to thrive in a technology-driven landscape. However, this metamorphosis comes with its own set of challenges and considerations. Let’s dive into these hurdles and discover how to overcome them while achieving your organization’s goals.
1. Organizational Culture and Mindset Shift
- Challenge: The resistance to change can be deeply embedded within an organization’s culture.
- Consideration: Cultivate a growth-oriented mindset that embraces innovation and adapts to new technologies.
- Approach: Foster a culture that rewards risk-taking and encourages open communication to build trust.
2. Change Management and Employee Buy-In
- Challenge: Employees may fear the unknown and be reluctant to embrace new processes or technologies.
- Consideration: Engage employees early on in the transformation process and communicate the vision clearly.
- Approach: Encourage two-way communication, provide training and support, and celebrate small wins to build momentum.
3. Legacy Systems and Technology Integration
- Challenge: Integrating new technologies with existing legacy systems can be complex and time-consuming.
- Consideration: Evaluate the compatibility of existing systems with the new solutions you plan to implement.
- Approach: Develop a well-thought-out integration strategy, and consider phased implementations to minimize disruption.
4. Data Privacy and Security Concerns
- Challenge: The digital era brings increased risks of data breaches and privacy violations.
- Consideration: Safeguard customer and company data to build trust and maintain regulatory compliance.
- Approach: Implement robust security measures, regularly audit systems, and ensure employee awareness of data protection practices.
5. Skills Gap and Talent Acquisition
- Challenge: Finding skilled talent with expertise in emerging technologies can be challenging.
- Consideration: Upskill current employees and promote a learning culture to bridge the skills gap.
- Approach: Collaborate with educational institutions, offer training programs, and consider hiring freelancers or partnering with external experts.
Watch now: 7 Deadly Mistakes Non-Tech Businesses Make on Tech Projects
Success Stories: Real-World Examples
As businesses brace themselves for their journey, they seek inspiration from the tales of industry leaders like Amazon and Netflix. These titans have undergone remarkable digital transformations, leveraging technology to disrupt markets and revolutionize customer experiences.
Staying Relevant like Amazon and Netflix!
- Challenge: Amazon began as an online bookstore, and Netflix was a DVD rental service. Both companies recognized the need to adapt and evolve to stay relevant in the ever-changing digital landscape.
- Solution: Amazon expanded its product range, becoming an online marketplace for various goods and services, leveraging technology to optimize customer experience and supply chain efficiency. Netflix transitioned from a DVD rental service to a digital streaming platform, investing in content creation and personalization algorithms to offer a superior streaming experience.
- Takeaway: Embrace innovation and be willing to pivot when necessary to meet evolving market demands. Continuously focus on improving customer experience to build loyalty and attract new customers. Leverage technology to streamline operations and enhance efficiency.
Unifying and Protecting Data in Healthcare like John Muir Health!
- Challenge: Healthcare companies are often concerned about data security and interoperability while implementing electronic health records (EHRs).
- Solution: Healthcare providers invested in robust cybersecurity measures and interoperable EHR systems to protect patient data and facilitate efficient communication among healthcare professionals. An example is John Muir Health, which “leverages a cutting-edge data platform to unify data while also using the cloud to improve real-time patient communication. As a result, patients can ask questions and receive information through their preferred communication channel, such as email or SMS.”
- Takeaway: Understand the unique challenges of your sector and tailor the digital transformation strategy accordingly. Collaborate with industry experts and technology partners to implement suitable solutions.
Creating Seamless Experiences in Retail like Ikea!
- Challenge: Retailers struggled to bridge the gap between physical stores and online shopping, creating a seamless omnichannel experience.
- Solution: Retailers adopted advanced analytics and inventory management systems to optimize stock levels and offer personalized recommendations to customers across various channels. Ikea, for example, tripled their online sales by prioritizing the digital side of their business!
- Takeaway: Continuously monitor and adapt to the changing needs of customers and the market.
Thriving in the Digital Age: Fingent’s Unparalleled Support for Transformation
The key to sustained business success lies in continuous innovation and adaptation. As organizations strive to remain competitive and relevant, embracing digital transformation becomes imperative. Throughout this journey, Fingent emerges as a trusted partner, offering comprehensive solutions and unparalleled expertise to empower businesses and drive growth.
Fingent’s commitment to excellence and wealth of experience in guiding organizations through successful digital transformations make us a beacon of reliability. By understanding the unique challenges of each industry and sector, we tailor our solutions to meet the specific needs of our clients. From industry giants to startups, Fingent collaborates closely with organizations of all sizes, ensuring that no one is left behind in this technological revolution.
By fostering a culture of innovation and providing the necessary support and training, Fingent top custom software development company helps employees embrace the digital shift with enthusiasm and confidence. Our meticulous planning and phased implementation approach ensure a seamless transition, minimizing disruption and maximizing efficiency.
Reach out to us, and let’s lead you to success on your digital transformation journey.
The impact and significance of digital transformation in financial services
Changing customer expectations, increasing regulatory complexity, stiff competition, and other factors are constantly pushing businesses for renovation and innovation. Also, the rising number of FinTech companies and solutions over the last few years have completely transformed the financial services landscape. Rather than just technology, digital transformation in financial services has now become an integral part of a successful business strategy. Digital transformation in the financial industry has improved employee and customer experience by helping meet regulatory deadlines and ensure cost-effective operations while remaining highly competitive.
If you consider how banking has transformed over the years, you will understand how digital transformation in banking and financial services has grown to benefit everyone with convenience. From simple branch offices to ATM and mobile apps, digital transformation has offered greater convenience, choice, and experience. Today, customers are gravitating more towards digital experiences and products.
What is the importance of digital transformation in the financial industry?
According to a recent report by Global Economic Prospects, the global economy will contract by over 5% in 2020 due to the COVID-19 pandemic.
However, the crisis has accelerated economic transformation, leading to an increase in the adoption of digital financial services.
Although the digital transformation was a development priority even before the COVID-19 crisis, it has now become indispensable for both short-term as well as long-term sustainable recovery efforts.
Here are four fundamental shifts that are forcing financial institutions to accelerate the rate of digital adoption.
1. Forced adoption of online and mobile channels
Social distancing and lockdowns are forcing people to stay indoors or go outdoors only to buy essential items. This has forced the rapid adoption of digital technology across the globe.
Deloitte reports that the United States, which has traditionally lagged in digital adoption is experiencing an all-time high in the number of check deposits and mobile logins. Interestingly, the major contributors to this growth are baby boomers and senior citizens who have been typically slower to adopt the digital channels.
For example, Goldman Sachs reported a 25% increase in the number of active users on the bank’s institutional platform. Also, the country has seen a spike in call center interactions as customers seek protection from the financial crisis caused by the pandemic.
2. Digital and contactless payments
The lockdown has witnessed a race among retailers to set up e-commerce capabilities to capture sales. With consumers shifting to online purchasing, there has been an acceleration towards digital and contact payments.
While MasterCard reported over 40% growth in contactless payment across the globe, Visa reported a staggering 150% increase in the U.S alone. Hygienic payment modes such as digital wallets, scanning QR codes, click/tap-to-pay, etc. have taken off well to encourage contactless payments during the pandemic.
Read more: FinTech: Safeguarding customer interest in the post-pandemic world
3. Virtualization of the workforce and ways of working
Previously, financial institutions hardly imagined their workforce working remotely. But, the COVID-19 pandemic has forced financial services companies to build a remote work model.
Wells Fargo and Bank of America have pushed almost 70% of their employees to work from home and have established contingency locations for those employees who are into trading and operations. Standard Chartered Bank has kept most of its employees working from home, increasing its VPN system capacity to 600% to keep pace.
Bandwidth issues aside, this transition has been largely successful due to digital disruption in financial services. Most financial companies have even committed to making the remote working model permanent.
4. Evolution of economies and underlying market structure
Even though financial companies have been enjoying stability for years, the COVID-19 pandemic has fuelled margin pressures for companies.
On one hand, insurers are fighting lowered premiums and high claim costs due to the market scenario, while on the other hand, banks are affected by reduced interest rates. Though it is difficult to predict the duration of the economic downturn, it is forcing financial services companies to operate effectively and efficiently to remain competitive in the market.
Moreover, as the market dynamics continue to evolve, “big tech” is likely to reinforce its foray into financial services leveraging its scale, size, and expanding its role in the consumers’ day-to-day activities. Also, smaller FinTechs could be at risk with their funding models. All these evolutions will have a substantial impact on buying, building, and partnering decisions for many incumbents as well as start-up financial companies.
Top 6 digital transformation trends in the financial industry
1. Mobile banking
The digital banking environment allows customers to transfer funds, deposit checks, and apply for loans easily from their mobile devices. Today customers prefer to do online banking at their convenience instead of visiting the brick-and-mortar banks. More and more customers prefer to use mobile banking as it allows 24/7 access, almost negligible waiting time, and ease of use. Mobile banking has changed the functioning of banking and financial institutions to a great extent and is expected to grow further in the coming years.
2. Blockchain
Blockchain is gaining momentum steadily and will play a crucial role in digital payments, loan processing, escrow facilities, etc. Additionally, Blockchain will be used in RegTech (a new technology that uses information technology to streamline regulatory processes) to avoid unnecessary regulation breaches.
3. Big data
Big data is everything. Financial institutions including banks are using machine learning to process data and drive analytical solutions effectively. Big data helps banks and other financial institutions to serve their customers efficiently by tailoring their services based on the insights gathered. Eventually, this can help financial institutions to bring in more investment and create a great work environment for both employees as well as customers.
4. Mobile apps
While everything in banking and other financial services is going mobile, there are third-party financial service providers who are competing with the banks. They could be financial managers, unconventional leaders, or financial budgeting mobile apps. Banks will have to consider ways to integrate these third-party services- what information to provide, the companies they want to partner with, and which services they are likely to offer to their customers directly without the need of the middle-man.
5. Automated Wealth Managers
Artificial Intelligence (AI) is disrupting several industries with automation and numerous other possibilities. Wealth bots or automated wealth managers use complex algorithms to calculate the best investment opportunities, best loan providing institutions, best interest rate, etc. Automated wealth managers have made financial planning a breeze and are also helping people achieve their business objectives accurately and with great returns.
6. FinTech (Financial Technology)
FinTech is a modern technology adopted by banks and financial companies to deliver financial services efficiently. It has improved drastically since its ATM and credit card days to the latest digital banks and blockchain technology.
FinTech along with automated technology and machine learning algorithms are revolutionizing the world of finance. Digital technologies such as customer service chatbots, expenditure tracking, and online budgeting tools are some examples of how far financial services have come today.
How Fingent can help you?
As your digital solutions partner, we will help you navigate industry disruption and equip you for future challenges. We apply our extensive experience and deep industry knowledge in fintech to guide you to see digital transformation through fruition. Here, we top custom software development company ensures to maximize value with minimal disruption to your existing infrastructure to help achieve your goals. Get in touch with us to learn more.