Digital transformation is a process that’s decades in the making in all parts of society.
In the business sector, technology offers great potential for generating new business opportunities and opening new markets.
It's true that the lack of knowledge about what digital transformation implies for companies can make many organizations reluctant to change. However, joining this transformation has many benefits, including the following:
- Processes are updated and made more cost-effective.
- Less economic, human, and other resources are invested on a regular basis.
- The creation of investment and growth opportunities.
Digitalization vs. digital transformation. What is the difference?
Digital transformation and digitalization are concepts that are related and can be confused, but they're different. We'll tell you what each one is and what the main differences are.
Digitalization could be defined as the set of tools that allow us to convert and store analog information into a digital format.
In other words, they're the resources that help us "pass" information from a physical format to a digital one.
Digitalization in companies is very common, and nowadays practically in all of them we can find digital elements such as: Management software, scanners, cloud storage systems, documents in digital format, etc.
Digital transformation goes one step further than digitalization. It's the application of digital technologies to processes, products, and assets, in a transversal way, in order to improve the efficiency of an organization.
The objective of digital transformation in companies is to take advantage of the new opportunities that new technologies offer thanks to the development of more efficient strategies.
Thus, digital transformation is not just about buying more powerful computers, storing data in the cloud or installing an ERP: It involves a deep and real change, which begins in the mindset of the company's executives and must be passed on to all its employees as part of their philosophy.
Having both definitions clear, we can establish the main differences between digital transformation and digitalization:
- Digitalization doesn't change the company's procedures, it only adapts them to the digital version. Digital transformation, on the other hand, adapts the company's operations to technological advances in order to optimize results.
- Digital transformation is a process of internal change, affecting all departments of an organization, customers, suppliers, shareholders, etc.
- Digital transformation implies a greater economic and time investment, but also a greater return on investment.
- Digitalization is just one part of digital transformation, but it isn’t the most important.
Advantages of digital transformation
Digital transformation is a commitment to the future, especially in a changing world like ours.
The short- and long-term advantages of implementing technology in the company are:
➔ It encourages and promotes innovation.
➔ It improves the efficiency of processes.
➔ It promotes collaborative work.
➔ It facilitates internal communication.
➔ It improves responsiveness.
➔ It offers new business opportunities thanks to data analysis.
➔ It optimizes the customer experience.
➔ It increases the brand value.
Analyzing these benefits, digital transformation in companies shouldn't be seen as an option to consider. Rather, it's a necessity to grow and remain competitive in the market.
Digital transformation in a franchise: How is it applied?
Digital transformation should always be approached as a gradual process, according to the capacities and needs of each organization and business model.
First of all, it's necessary to determine what a business needs to grow in the digital environment, although the first step will always be to make the most basic processes digital.
Then, you’ll have to establish priorities, based on the need for:
- Promoting productive and flexible work methods.
- Developing and implementing innovative ideas.
- Getting to know the customer through data management.
The keys to achieving these three objectives are:
- Getting out of your comfort zone. In other words, having an open mind towards innovation and change.
- Encouraging digital skills in employees and managers (self-learning, retraining certain skills, collaborative work, fluid communication, improving communication with the customer, etc.).
- Designing digital strategies. These strategies should include clear objectives, measuring results, fixing mistakes in the short-term, and planning for the future.
When opening a franchise, entrepreneurs have some advantages.
In this business model, digital strategies and management tools are usually common and well-defined.
In fact, the know-how passed on to entrepreneurs already incorporates the keys to digital transformation.
For example, at Jeff we have an app, Jeff App, from which users can access the Jeff ecosystem and have all their daily services in the palm of their hand (laundry, gym, etc.).
Are you familiar with Jeff Suite?
Similarly, Jeff Suite is a software used to manage each business individually and efficiently.
One of the keys to Jeff Suite is that it analyzes metrics and actions, helping you to identify the main problems or opportunities of your business in order to reach maximum performance.
From Jeff Suite, you'll also be able to organize your driver's routes at Mr Jeff in the most efficient way possible (by taking into account how they're distributed geographically), organize your Fit Jeff classes, manage tasks, organize employee work schedules, communicate with your customer, or monitor their experience and satisfaction rating from start to finish.
Jeff is undoubtedly synonymous with digital transformation. Are you up for the switch? Contact us and open your franchise.