When we refer to the term 'digital transformation', it can never be restricted to a certain technology or a certain aspect of our lives affected. Rather, it covers each and every aspect of our lives that has been influenced by technology over the course of time. The entire world as we know it has been revolutionized by the constant transformation these digital advancements bring.
We are all participants in the advent of the 21st century. This century is also witnessing the evolution of the digital age. The age where everything from industry to home life is being influenced by the ever-increasing practicality of digital equipment.
Both short and long-distance communication has been made easier through the digitalization of communication devices. Smartphones, laptops, and tablets are great examples of devices that can be used to communicate with anyone, wherever they might be. If you want to send documents, files, or just want to have a casual conversation with someone, this can all be easily achieved with the help of digital communication devices.
Organizations tend to give employees personal smart devices these days, which allows seamless communication without the hassle of wires. Traditional conference calls have been replaced by video-conferencing, which greatly complements the overall business model.
The exponential growth of technological advancement in the last 50 years has led us to a very competitive environment. Quicker, cheaper, and easier methods are being used to take an edge over competitors; whether it is a small company or a massive industry. Digitalization is the present and the future. Centralized networks have been created in almost every work environment, which readily increases efficiency, and allows easier collaboration between different departments.
It is of utmost importance that we differentiate between digitalization and digital transformation. Digitalization generally refers to digital business environments, but digital transformation is a much broader term. It not only refers to building digital businesses but rather, involves a great many number of bridges that need to be established in order to link a company or organization’s current model to that of a digital one. So digital transformation involves digitalization, as well as the digitization of the entire business model. Digitization refers to changing the analog values into digital ones in any environment.
Digitalization in the banking sector has helped its customers a great deal. It has provided convenience and saves a lot of time for everyone. Online banking-which is a result of digitalization-has helped bankers and customers by making account management much easier. Digital transactions have made it much easier to transfer funds from one bank to another, or from a bank to any individual, and vice versa. It is easier to keep track of the balance in accounts for customers without the hassle of going to the bank themselves.
But the nature of the financial sector is a sensitive one, and many processes still haven’t been completely affected by the digital age. An example of this is the manual hassle associated with checks, which customers and bankers still have to go through. A recent study from a Deloitte report also depicted that only about 12-13% of customers receive tailored information and statistics from their banks.
E-commerce is one of the most advantageous and widely used facilities provided by the digital age. Buying/selling products online has never been easier for customers and vendors alike. A customer can easily purchase items and services online, using different methods such as bank cards, PayPal, digital wallets, digital currency, and more. Customers can either receive their orders on any designation provided by the vendors or have the items delivered directly to their doorsteps.
Major business portals like eBay and Amazon have sprung up and gained mass popularity in recent years. Buyers and sellers can easily participate in biddings and seamless transactions over these portals and many others, which saves time and money for both parties.
Educational institutions are benefiting from digital equipment in every department, ranging from offices to the classroom. Digital libraries are helping students to get the books they need in digital form, anywhere and anytime. Laboratories use digital equipment, which aids students in sharing their ideas across the globe, all the while learning the latest techniques and methods regarding various phenomenon.
In this age of digital transformation, video games are the norm. eSports are now among the most lucrative sports leagues in the world, with major organizations sponsoring eSport teams and individuals. Tournaments are held every other day, where teams and individuals compete to get a cash prize which can rival the top paying sports leagues around the world. In some countries like Korea and the Philippines, video games are even being taught in universities and colleges as a major. In some countries, eSports players have garnered the status of professional athletes.
Virtual reality is another major advancement in the field of gaming, which is transforming how players interact with games completely. Users get to experience the ambiance and the settings of a game in a unique way by actually being able to control various aspects of a game physically. The Oculus Rift is a virtual reality engine exclusively for Sony’s PlayStation 4, which lets players experience a number of games in virtual reality.
Large companies often tend to test their equipment before actually launching it to the market. 'Non-destructive' testing is carried out, especially in the aircraft and automobile industries, where an artificial environment is generated to test the durability of the various components involved. Computer-based simulation tests are used to check the impact of various sorts of potential crashes and accidents. This proves to be extremely effective, since all the costs and extensive labor hours related to building actual prototypes are cut down, benefitting the entire industry.
These days, automobiles have electronic components with digital sensors installed, making it easier to detect any problems in the system. Electronic pit shops have been established, which connect to the internal electronic systems of an automobile to pinpoint the exact source of problems much faster than the conventional methods.
Influential organizations have the responsibility to prepare the system in order to be able to adapt to the increasingly essential digital transformation. Confusion and uncertainty will always be there when trying to adapt to new technology. But digitalization and digital transformation are integral for a company to be successful in the changing global scenario.