What is Digital Transformation?

In this issue, we wanted to highlight Digital Transformation, one of today’s most talked-about concepts, often referred to as Industry 4.0. Digital Transformation, which refers to the transformation of business models, business processes, competencies, and capabilities through the use of digital technologies to maximize their benefits, encompasses not only the implementation of technology but also the restructuring of product-service portfolios, marketing, sales, and service channels, internal company operations and processes, and the company’s corporate structure to maximize the benefits of digital business models. Digital transformation technologies that contribute to the continued growth of Digital Transformation include many technologies such as cloud computing, data analytics, the Internet of Things, robotics/automation, and artificial intelligence.

Source: TÜSİAD & BCG. (2017). Turkey’s Digital Transformation Competence in Industry

Digital transformation consists of components such as customer experience, employees, change, innovation, leadership, and culture; Because it requires comprehensive management, it also carries many risks.

So, why do businesses invest in Digital Transformation?

By investing in Digital Transformation, companies aim to:

• Ensure the continuity of corporate memory,
• Respond to customer requests accurately and timely through data analytics and new digital channels,
• Increase efficiency, respond quickly to change, and reduce costs by applying technologies such as sensors, artificial intelligence/smart systems, robotics and automation, and IoT to processes.

If we look at the contribution of Digital Transformation according to the figures in the Gartner 2022 report:

• Up to 60% reduction in labor costs
• Up to 86% reduction in the risk of errors in processes
• Up to 78% increase in productivity capacity
• Up to 95% reduction in the risk of misrecording errors
• We observe an increase in sales of up to 52%

Supporting the figures above, according to the McKinsey 2022 report, thanks to digital transformation:

• 43% to 69% economic gain
• A 40% increase in customer satisfaction can be achieved over the current situation.

As can be seen from this data, the benefits of digital transformation for businesses are too great to ignore.

Dönmez Debriyaj, which supports continuous development and invests in this direction with over 40 years of experience, continues to progress by placing digital transformation at its center.

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