Digital transformation is no longer optional; it’s a strategic imperative. Global spending on digital transformation technologies and services is forecasted to reach $2.8 trillion in 2024, up from $1.3 trillion in 2022. While more than 70% of U.S. companies already have digital transformation consulting services, accounting for 35.8% of this expenditure.
The question of how to digitally convert established businesses is what matters most in the current business context, rather than whether they must. Getting stakeholder buy-in, holding them accountable, overcoming organizational silos, and removing procedural barriers are typically significant obstacles to developing digital capabilities. However, teams that can collaborate effectively across business units, with transformation partners, and within a broader partner ecosystem will succeed.
As digital transformation tools significantly transform industry after industry, many businesses are adopting large-scale change initiatives to capitalize on these trends or stay ahead of competitors. More than 80% of respondents in a recent McKinsey Global Survey on digital transformations said their firms had made similar efforts during the past five years. However, success in these transitions is proving to be elusive. While our earlier research found that less than one-third of organizational transformations successfully raise a company’s performance and sustain those gains, the most recent findings reveal that the success rate of digital transformation is significantly lower.
This is evident in the transformation in four key areas: telecommuting, on-demand services, virtual events, and the Cloud.
- Telecommuting: Workstyle in every industry is almost changing, paving the way for a remote workforce. It is not just work; telecommuting is becoming the trend.
- On-demand Services: Online delivery has become the new norm everywhere, so companies must adapt their delivery methods to meet this shift.
- Virtual Events: Companies have discontinued in-person events, business visits, and meetings, instead opting for WebEx and other digital meeting platforms.
- Cloud: Given the operations and co-working happening in the cloud, no one can imagine a non-cloud world.
All these factors directly make digital transformation services more imperative than ever for companies globally. So, what are your plans for digital transformation?
Digitally Transform Your Business
What is Digital Transformation, and Why is it Important?
“Digital Transformation” describes the strategic process of integrating digital technology into many company domains to alter its processes. The purpose of digital transformation initiatives is to boost productivity, increase agility, and change the corporate culture to one that values the technology of the digital era. This could entail adapting established departmental responsibilities to the changing demands of the market and business environment. So, just as much as integrating digital technologies, digital transformation services also involve changing the company culture, employee mindset, leadership, and business strategy.
Digital transformation services do not occur quickly. Instead, it is a journey that can take several months or even years and will alter as technology, people, and processes advance. Therefore, senior leaders and human resources must present digital transformation solutions methods and technology partners that foster employee buy-in if the digital business transformation is to gain traction.
Most of the money spent on digital IT transformation will go into the appropriate technology, including training and an agile IT environment. Because it enables the company to connect applications more smoothly, making them faster, more dynamic, more collaborative, and more flexible to meet consumer and stakeholder demands, the cloud—whether public, private or a hybrid cloud—is crucial to modernizing your business.
Many businesses start by investing in business technology, such as CRM systems, that keeps the company online. The following steps involve assembling the ideal talent team for digital IT transformation strategy initiatives so staff members and business units can confidently use technology and new procedures.
For C-suite executives, digital transformation is not a tech upgrade—it’s a leadership mandate. As of 2024, over 80% of Fortune 500 companies have launched digital initiatives aimed at improving agility, customer experience, and workforce productivity (Zipdo).
Why does this matter to executives in the U.S.? U.S. businesses lead global investment in digital transformation, accounting for 35.8% of the $2.8 trillion global spending projected for 2024 (LeadBuilderMarketing).
But transformation isn’t just about adopting technology—it’s about organizational change. Successful initiatives require a shift in company culture, modern leadership, and processes that are both agile and employee-centric.
McKinsey reports that only 30% of digital transformation efforts succeed, mainly due to cultural resistance, lack of clear vision, and poor cross-functional collaboration (McKinsey).
Useful link: What is a Digital Transformation Strategy?
What Are the Tangible Business Benefits of Digital Transformation?
Organizations may view digital IT transformation as “modernization” and, as a result, consider it a required disruption for any organization that wishes to remain competitive in today’s business environment. But enterprise digital transformation is more than a matter of survival for your company. Instead, it’s about gaining the benefits of having the foresight to understand how digital transformation can positively impact all aspects of your business, from staff productivity to customer experience and leadership.
The following are the principal advantages of a digital transformation journey:
1) Stay Competitive
If you wait to modernize when all your competitors have already started their business transformation path, you risk falling behind. You might still need to utilize obsolete software and out-of-date IT infrastructure, which will cost you time and money while your competitors are getting leaner, making decisions faster, and optimizing their processes for optimum efficiency. Digitally mature companies are 26% more profitable than their competitors
2) Geographical Boundaries Will be No Longer Exist
Due to digital technologies, businesses now have access to numerous new markets. Today, many individuals already utilize digital communication tools for personal purposes, making it easier for us to communicate with others. Therefore, a digital transformation strategy within a company would entail utilizing digital tools, such as communication software, cloud computing, the Internet of Things, and other remote working tools, to enhance workplace flexibility and the ability to interact effectively from anywhere, at any time. Cloud-based tools enable real-time collaboration across teams and regions, facilitating hybrid work and global reach. 74% of U.S. firms now support remote operations
3) Increase Employee Retention
Utilizing business process automation and artificial intelligence solutions will raise employee morale by relieving staff of tedious tasks. By incorporating these technologies into your processes, you can inform your staff that you want to eliminate time-consuming manual tasks. Instead, their time is freed up, allowing them to concentrate on projects that highlight their value as benefits. As a result, your staff will be more effective, efficient, and satisfied as a result of the business transformation of your company.
4) Enhance User Experience
Businesses are becoming more conscious of the need to engage customers in this age of mobile devices, social networking, and social media. By turning your company into a digital one that leverages technology, you may enhance your internal and external processes to become more user-centric. Customers are more likely to try a new product, recommend you to others, or spread the word about you when they feel involved in a digital transformation journey.
5) Data-Driven Decision-Making
Adopting a data management system promotes the making of informed decisions. Your digital interactions generate data that becomes a treasure of insights that will change how you provide value to your consumers. You may better understand customer expectations by using analytical tools to acquire insight into consumer behavior. This knowledge can be applied to enhance content management, digital marketing, company strategy, and business models. Making precise predictions using data analysis might help you improve your business growth strategy.
Useful link: 5G Use Cases Paving the Way for Technological Advancements
What Are the Top 10 Factors That Drive a Successful Digital Transformation Initiative?
Here are 10 factors you need to consider:
1. Customer-oriented Approach
This is the fundamental basis for success in digital transformation solutions, which requires a shift in mindset from product-focused to customer-oriented. Every deliverable should aim to satisfy customers and simplify their lives.
2. Culture and Change
Drive in a vision backed by a collaborative mindset and influential thought leadership. Break down the siloes and bring the change management built on cultural transformation. Align the change management efforts with modern, dynamic business environments.
3. Thought Leadership
Thought leadership should begin at the top level, and leaders should emerge even at all levels, backed by a strong vision aligned to business goals. Someone who is technically proficient and has a broad understanding of the industry, its customers, data science, machine learning, artificial intelligence, and the cloud. Team management, client relations, and DX plan implementation are crucial.
4. Technology Decision-making
This is crucial to the success of the digital transformation companies. All responsible stakeholders should be heard when making technology decisions. Review front- and back-end systems again to ensure a seamless, integrated, and native customer experience and, ultimately, a positive employee experience. Utilize technology to foster credibility and fulfill rising client expectations. Ensure your messages and content are platform-proof to prevent affecting user experiences due to algorithm changes.
5. Effective Integration
With all data systems integrated with the mainstream process, a well-streamlined data strategy makes digital transformation challenges successful.
6. Internal Experience
Internal employees should act as customers in deciding the experience factor for any digital solution. Getting the right feedback helps meet the right customer expectations.
7. Enhanced Supply Chain
Digital transformation companies can make your supply chain faster, more reliable, and more seamless than ever. Explore ways to digitize aspects of the supply chain, from manufacture to fulfillment and delivery.
8. Data Security
As you adopt new processes, security is the foremost aspect that poses a severe threat to confidential organizational or user data. Here is where you need regulatory solid and privacy policies for data safety.
9. Service Delivery
Change the way you deliver products and services. Promote a product delivery mechanism backed by innovation and efficiency.
10. Personalization
Leverage the potential of digital solutions to ensure a personalized product experience. Use AI-like solutions to understand customer behavior and deliver the desired results.
Case Study: A Holistic Approach to Digital Transformation in Healthcare
Objective:
Transform healthcare operations by integrating digital technologies to enhance patient care, streamline processes, and ensure compliance.
Challenge:
Fragmented legacy systems and inefficient data management hindered real-time decision-making and patient care efficiency.
Solution:
Veritis implemented a holistic digital transformation strategy, integrating cloud solutions, automation, and advanced data analytics to modernize healthcare infrastructure and improve operational workflows.
Outcome:
- Improved patient outcomes through real-time insights
- Enhanced operational efficiency with automated processes
- Scalable infrastructure supporting future growth and innovation
- Impact:
The healthcare provider successfully adopted a data-driven, scalable digital ecosystem, improving patient care quality and operational agility.
Read the Full Case Study: A Holistic Approach to Digital Transformation in Healthcare
Capping it Off
Digital transformation is not just about adopting new technologies; it’s about reimagining business models to stay competitive. By focusing on customer-centric strategies, fostering a supportive culture, and making informed technology decisions, organizations can navigate the complexities of digital transformation and achieve sustainable growth. This solution can help businesses achieve their objectives, expand into new areas, become more agile, increase productivity and profitability, and retain and motivate their workforce.
Beyond new technologies, the success of digital transformation technologies depends on the support of top-level executives, a shift in organizational culture, and employee buy-in. A digital transformation company can play a key role in guiding businesses through these essential changes, ensuring alignment across all aspects of the transformation. These ten factors drive your digital transformation efforts, welcoming the new-age business continuity and the next wave of business delivery.
These are only a few examples of digital transformation strategies your business or corporation can find motivating in the digital age. Please contact Veritis, the Stevie Awards winner, if you have any additional queries. We will respond to your particular requirements.
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Why is digital transformation important for C-suite executives?
Digital transformation helps C-suite leaders improve operational agility, enhance customer experience, and stay competitive in a rapidly evolving market.
How does company culture impact digital transformation success?
Culture plays a crucial role; companies that foster a collaborative, change-ready environment are significantly more likely to achieve digital transformation success.
What is the role of leadership in digital transformation?
Leadership is critical—successful digital initiatives are typically championed by executive sponsors who align strategy, culture, and technology.
Which technologies are essential for digital transformation?
Key technologies include cloud computing, automation, artificial intelligence, CRM systems, and integrated data analytics platforms.
How does digital transformation improve customer experience?
It enables personalization, omnichannel support, and real-time engagement, which boosts customer satisfaction and loyalty.
What challenges do organizations face in digital transformation?
Common challenges include resistance to change, legacy systems, lack of integration, cybersecurity risks, and unclear leadership vision.
How does digital transformation impact supply chain operations?
It digitizes supply chains, improves real-time tracking, enhances inventory management, and enables predictive logistics.
Also Read:
- 10 Factors That Can Drive Your ‘Digital Transformation’ Initiatives!
- 8 Factors That Drive Digital Transformation in Banking Industry
- Business Transformation Vs. Digital Transformation: A Thin Line of Difference!
- What Are the Leading Digital Transformation Technologies?
- Global Digital Transformation Market to Reach USD 1009.8 Billion by 2025