What is digital transformation and why is it necessary for any business

digital transformation

The appearance of new technologies has changed the way we work, buy and even relate to each other. Companies need to join this process of digital transformation so as not to become obsolete. Well used, technology offers great potential to generate new business opportunities and to open up new markets.

The lack of knowledge, the fear of change and the myths surrounding digital transformation give many entrepreneurs goosebumps when they hear about this topic. The consequence is that  many organizations continue with outdated  and unprofitable work processes.

Digitization offers enormous potential to gain competitiveness  in an increasingly technological world. This is demonstrated by a  study by the Massachusetts Institute of Technology , which states that more technological companies are more profitable and have more satisfied customers.


The concept of digital transformation can be confusing for some people, so we are going to try to specify it.

Digital transformation can be defined as the  integration of new technologies in all areas of a company to change the way it works . The goal is to optimize processes, improve their competitiveness and offer new added value to their customers.

Therefore, it is not simply about buying more powerful computers, storing data in the cloud or installing an ERP. Digital transformation  implies a change in the mentality of managers and employees of organizations . It is a commitment to the future towards new working methods that take advantage of the full potential of digitization.


Incorporating digitization into all company processes generates  undeniable competitive advantages in the short and long term . These are the most important:

  • Promotes the culture of innovation in the company
  • Improves the efficiency of processes in organizations
  • Contributes to promoting collaborative work and internal communication
  • Provides rapid responsiveness in a changing environment
  • Offer new business opportunities thanks to data analysis
  • Improve the customer experience and their relationship with the brand

Digital transformation can no longer be considered an option . Currently, companies need to renew themselves by adapting to digitization if they want to remain competitive.


The evolution towards digital is based on  four fundamental pillars: technology, customer experience, company culture and business objectives .

Some entrepreneurs may feel overwhelmed by thinking of digital transformation as a radical change that they do not feel capable of taking on in the short term. In reality,  digitization should be conceived as a gradual process according to the capabilities and needs of each company . Keep in mind that its implementation involves all members of the organization.

To address this transformation effectively, three key points must be paid attention to:

  • Promote productive and flexible forms of work that help retain talent
  • Foster innovative leadership with the ability to come up with new ideas
  • Knowing the customer through effective data management

Digitization must be done with future needs in mind and is therefore an essential element of any business plan.

Now, how can we make these changes?

1. Leave the comfort zone

Evolving as a company in today’s world  implies a mindset open to renewal . Digital transformation does not have to be a chaotic or traumatic process.

The fear of change means that many Spanish companies are losing ground compared to those that have opted for digital transformation. Mainly, this is perceived in their relationship with customers.

21st century consumers use new technologies on a regular basis to answer questions or satisfy needs. Who wastes a morning doing business with their bank if they can do it comfortably from their computer?

2. Promote digital skills in employees and managers

The new digital landscape requires  innovative, creative people who are willing to learn digitally . This process involves both employees and managers, who must acquire digital skills and other skills such as:

  • Self-learning ability
  • Collaborative work between departments
  • Fluid and effective communication with clients, suppliers and colleagues
  • Customer orientation

In Spain there is a long way to go in this regard, but the digital transformation is a great opportunity to attract talent that has the necessary skills in the technological age.

3. Design digital strategies

The current and future business model must focus on the customer experience and the digital environment. Implementing new technologies is the first step. Current software makes  it possible to define a digital strategy that involves all departments .

Some essential actions are the design of a customer life cycle map, the measurements of the results, the correction of errors in real time and the future planning  according to the data obtained.

In summary, digital transformation is not an objective in itself but a process that requires an open attitude to change, emotional intelligence and the ability to adapt to a changing environment.

In a highly technological world, new opportunities arise from the possibilities that digitalization offers us.

Have you already addressed the digital transformation of your company? What aspects do you think are most important? Tell us how you take advantage of new technologies to take your business to the next level.

Leave a Reply