In 2023, businesses can no longer ignore the need for digital transformation. Those that are unable to adapt to the increasing prevalence of technology run the risk of being overtaken by rivals who are better positioned to take advantage of emerging trends.

Businesses of all sizes are undergoing digital transformations, but large enterprises with complex systems and processes face an uphill battle. Even with extra resources and manpower, the transition isn't always simple.

That said, digital transformation at the enterprise level is possible, and the benefits make it worth the challenge.

Enterprises can benefit from digital transformation in three main ways: customer experience, efficiency, and innovation. By adopting new technologies and digitizing traditional processes, you can optimize output, boost profits, and secure sustained growth for your business.

Defining digital transformation at an enterprise level

The term "digital transformation" refers to the use of digital tools to boost productivity and customer satisfaction. 

Today, businesses are undergoing a digital transition as modern working standards and consumer expectations change. Growing at a CAGR of 21.1%, the digital transformation market is expected to reach $1,548.9 billion by 2027.

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Any business, from a small startup to a global conglomerate, can benefit from improving the deployment and management of its daily operations. To succeed with your digital transformation, however, you need effective communication and strong leadership.

Some examples of changes you might see as a result of a digital transformation are listed below.

• Empowered customers with the tools to conduct basic account maintenance without needing to contact support. 
• A switch to cloud integrations and storage.
• Collaboration tools that support remote work.
• A better understanding of consumer habits and product usage through the use of analytics tools.
• SaaS (software as a service) solutions. This means customers can use beneficial software without needing to install anything on their end.

What truly defines digital transformation at the enterprise level, however, are the complex changes required for a  successful transition.

In terms of scale and complexity, enterprise digital transformation is different from digital transformation at lower levels, such as in a department or small business unit. It often involves several departments, business units, and sometimes even different locations. It also calls for a comprehensive strategy that considers internal and external elements that could affect the business.

Managing and integrating different technologies and systems is a major obstacle to enterprise digital transformation. There must be extensive collaboration, coordination, and communication across all departments and interested stakeholders. It also requires an in-depth understanding of corporate goals and a roadmap for achieving them.

A digital transformation roadmap will help your product teams define their strategy for digitizing processes and using digital tools. It also allows you to share your digital transformation strategy and vision with key stakeholders and decision-makers.

When undergoing a digital transformation at the enterprise level, it’s essential to foster a culture of innovation among employees. Embracing the innovation, risk-taking, and constant learning associated with transformation is as important as investing in cutting-edge technology and digital processes.

What is the importance of digital transformation for enterprises?

The short answer is to thrive in the modern market.

Digital transformation enables businesses to respond quickly to changes in the market. For example, technology can help them rapidly adapt to market shifts, changes in customer expectations, and disruptions in the supply chain.

Automating manual processes and collecting and analyzing massive data volumes are part of the legacy transformation associated with adopting a digital-first culture. This means leveraging technology, such as big data analytics, cloud computing, and the Internet of Things (IoT), to increase savings, productivity, and customer satisfaction.

The potential impact of digital technologies on companies is far-reaching, and smart businesses are taking note. 93% now have a digital-first business strategy or plan to create one. 

Here are some reasons why businesses are taking this bold step:

• Businesses that successfully adopt digital technology in their operations gain agility.
• Modifying or updating software is easier than traditional alternatives.
• Reaching customers through digital channels is more effective than other traditional approaches.
• Robotic process automation (RPA) and AI systems can work around the clock, improving business efficiency.

The benefits of enterprise digital transformation

In today's dynamic business climate, digital transformation is essential to maintain competitiveness, agility, and resilience. 

Some of the key benefits of digital transformation for businesses include:

Enhanced business process efficiency

Digital transformation leads to increased efficiency, which drives sustained growth for your business. Changes in processes and the introduction of cutting-edge technology eliminate mundane and time-consuming manual tasks. Customers and employees alike appreciate the time and resources saved by automating digital processes.

Improved workforce productivity, teamwork, and collaboration

Changing internal processes and introducing new tools to boost teamwork are essential to delivering a better service to customers. Collaboration between employees from different departments is necessary to ensure a positive customer experience in large enterprises. 

When you make improvements to a process, you often have to improve internal communication and coordination. The new digital technologies you implement can boost customer satisfaction by improving teamwork within your business.

Higher business revenue generation

Businesses that use digital technologies to optimize product quality, customer service, and operational efficiency can see their profits increase in several ways.

Digital transformation creates new revenue streams by helping businesses generate fresh products and services as well as explore alternative business models. This could mean driving innovation with cutting-edge technologies like the Internet of Things (IoT) and AI.

Optimizing a company's sales operations through digital transformation can also generate sales and profits. For instance, you can monitor and analyze customer interactions with CRM software to identify up-selling and cross-selling opportunities.

Enhanced customer satisfaction

You can learn more about your customers' habits and preferences through the use of digital tools, which therefore allows you to provide better-personalized services. 

Using this data, you can also give customers more of what they want by making personalized recommendations and offering tailored promotions.

Reduced operating expenses

Business running costs can be reduced and productivity boosted by automating routine tasks. 

Digital transformation can also scale down your operating expenses and increase revenue through cloud data management. In the healthcare industry alone, the cloud computing market is expected to increase by $42.21 billion by 2027. 

Effective risk mitigation

Businesses can also benefit from digital transformation by using advanced data analytics and AI tools to better detect, evaluate, and control risks. 

This involves gathering and analyzing data from several sources to identify potential risks. These could include social media, consumer feedback, and market trends. This information can be used to better anticipate and prepare for the unexpected.

How to know if you’re ready for enterprise digital transformation

While enterprises cannot afford to ignore digital transformation if they want to stay relevant, it’s not something that should be jumped into head first without any preparation. Take the time to consider how your business fits into the following scenarios. This will help you when it comes to planning your digital transformation and ensure success.

Your enterprise utilizes multiple software solutions

When a business is experiencing rapid expansion, it’s common to implement new software solutions as needs increase. However, this can result in many businesses having poorly integrated systems that aren’t compatible with their older tech and processes.

The time lost navigating between various platforms, portals, and interfaces reduces productivity and efficiency. Using different channels also increases the likelihood that something could go wrong. 

The answer is to find an enterprise software platform that’s tailored to the specific requirements of your business. 

Unacceptable levels of productivity within the enterprise

Increasing output is a primary focus for businesses of all sizes. Legacy software systems can be a major threat to employee productivity. The best-case scenario is that outdated systems help maintain the status quo, however, no forward-thinking business wants to be a victim of complacency.

In an ideal world, your enterprise software should drive efficiency. Businesses with stagnant productivity can be rejuvenated by digital transformation.

Regulatory compliance is becoming challenging

Regulatory compliance is a significant issue for many businesses, particularly those in highly regulated industries, such as finance and healthcare. However, many organizations lack the resources to achieve complete compliance.

You might need better auditing and data-management systems or additional layers of security to fully comply with regulations. Digital transformation can help you meet these required regulatory and legal standards.

Your enterprise is getting ready to expand and use scalable solutions 

When a business expands, it often needs new technology, for example, a CICS mainframe, to meet the demands of expansion. This is the ideal time to consider a complete integration of enterprise software. 

Don’t wait until issues arise, and the situation becomes desperate; everything you need should be included in a comprehensive enterprise software solution that can perform the functions of several separate systems.

Digital transformation guide and best practices to ensure success

A successful digital transformation requires thorough preparation, implementation, and supervision. 

Our best practices and guidelines for a digital transformation journey are as follows:

Adopt a product-led mindset

Adopting a product-led approach is one of the most important things you can do to ensure a successful digital transformation. This prioritizes developing products that are tailored to satisfy customers and can be modified based on customer feedback and shifts in the market.

With a product-led approach, teams are encouraged to work collaboratively across departments and functions on the development and improvement of products that will appeal to the target audience. 

This approach promotes iterations and regular feedback loops, which lead to better product quality and efficiency. 

Set expectations

Despite the multitude of benefits, 80% of digital transformation projects fail, and unrealistic expectations and goals are usually to blame.

Use a transformation roadmap to clearly state what you hope to achieve with your transformation and how it will solve your stakeholders’ problems. 

Most importantly, understand that the transformation process will take time and require some degree of flexibility on your part.

Keep your stakeholders informed

Once you've informed your stakeholders of what to expect, keep the lines of communication open. Establish reliable means of sharing so they’re aware of developments and can offer their input. 

Achieve digital transformation success with OpenLegacy

No matter how well it reads on paper, if your digital transformation plan fails to account for the future, it is ineffective.  

A solid digital infrastructure insulates your business from market fluctuations, shifting consumer needs, new developments, natural disasters, and the great unknown. No matter the origin of the change, you’ll be prepared for it.

Accelerate your enterprise’s digital transformation with the help of OpenLegacy Hub. Using APIs and microservices, our solutions support the fast and easy integration of cutting-edge tech with your legacy systems. By partnering with top public and private cloud vendors, including AWS, Microsoft, and Google, OpenLegacy ensures simple access to the most complex legacy systems. 

FAQs about digital transformation for enterprises

What are the three Rs of digital transformation?

• Rethink. This involves re-evaluating your existing business processes and identifying opportunities to drive growth and innovation with technology.
• Reskill. This involves training, upskilling employees, or hiring new talent to acquire the necessary expertise for your digital transformation project to succeed.
• Restructure. This involves modifying your business structure to match new business models. It can mean creating new roles and responsibilities or trying new methods of communication and collaboration.

What is a digital transformation roadmap?

A digital transformation roadmap outlines all the steps required to transition to new digital processes. 

To create this roadmap, you must understand your business needs and create a strategy, complete with milestones and a clear timeline, to meet them.

What is the function of an enterprise architect in the context of digital transformation?

An enterprise architect creates a technology strategy and ensures that it aligns with your business objectives. The architect is responsible for planning, designing, and monitoring the implementation of the transformation project.