How will digital transformation impact your business?

You have certainly heard about Digital Transformation . It is a very popular term, especially in recent years. Asking yourself how this phenomenon will impact your business is even a mistake, as it is already impacting – in the present, at this very moment.

There are basically two types of companies in the world:

1) Companies that were born digitally;

2) Companies that were born before the transformation.

The second case consists of companies that arose at a time when internal processes, communication, forms of relationship, decision-making, measurement of results and many other activities were carried out in an analogous way, that is, in conventional (physical) means.

Companies that fall into the second scenario, if they want to have any competitive advantage in the market, will inevitably have to adhere to the transformation process .

And, exactly from the reflection on this scenario, the SEBRAE manager, Paulo Cereda, based on his vast market experience at the command of Regional São Paulo, gave us his testimony, through the text written below.


Who is afraid of digital transformation

         Perhaps you also remembered the song sung by the three little pigs in the fable turned into a cartoon: “who’s afraid of the bad wolf…”. The brave three recounted the bravado in a burst of courage, but that was actually only in the speech.

            It was precisely by seeing again a piece of this fable that the analogy came to me about how people have reacted to the effective changes already brought about by the digital transformation and the news and predictions about what is yet to come.

            Some entrepreneurs look at everything that is announced about the changes in the market, with two main reactions, the disbelieving / accommodated and the terrified. Those who disbelieve in relation to the effectiveness of the changes assume the faith that all this will pass soon, then just be quiet and take no action in the direction of the changes, maintaining the same management practices and everything will soon return to “normal”. The panicky often take on the panic, believing that jobs will end and widespread misery. They look to the future, imagining the apocalypse of modern society due to the end of jobs and the absolute misery distributed in all locations on earth. Few are those with a vision for the future who understand the opportunities that are yet to come.

            In order to present my vision of the future of business and jobs, allow me a brief definition or explanation of how I understand the Digital Transformation process, without making any commitment to academic rigor here. I understand that by digital transformation, the introduction of technology, preferably IT, to improve the management of internal processes and the relationship with the market, with a focus on expanding the offer of value to the end customer. Ultimately this means new business models for a constantly changing market. So there is no use hiding or omitting, transformation is inevitable, so preparing yourself and looking to the future through the lens of opportunities is then the answer to how to take advantage of all this admirable new digital world and not just survive.

            The introduction of technology, remembering that we are mainly talking about IT here, has the main objective of improving the management of a company’s processes . See, if a company does not yet have its processes mapped and some management on them, focusing on expanding the value offer to the end customer, the risk of introducing technology is enormous. This can end up making the results of the business even worse. If this is your case, you are already late, but with hard work it is possible to turn the tide .

            Another important point is the focus on the market, mainly from the question: What can I do to expand the offer of value to my end customer?

            It is not just a matter of making use of social networks to promote your products and services, create a website or even an e-commerce, all of this is part of the whole. We are talking about a complete revolution in the way your products and services are conceived based on the relationship and validation of your customers , in your company’s communication with the market, that is, in your company’s business model. It is not about positive thinking or declared courage, but about understanding and adapting to the new consumer market, which has a new mental model, molded from the relationship with technology.

            We certainly already understand the importance of management, the deep knowledge of your market and the competitive modeling of your business. Let’s be frank. Nothing new so far, except the introduction of technology, changing society’s behavior patterns and demanding from companies the ability to adapt quickly to all this, that is, it is not the first time that in the business world this has happened and neither will it be the last. The novelty here is only the incredibly fast pace of events.

            You decide to look at all this with fear and then succumb to the changes already consolidated and the others that are yet to come, or look at the brave new world of nascent opportunities and seeking innovation every day, gaining efficiency and effectiveness, promoting revolution in the offer of value and in the shopping experience of its final customer and thus be ready to stretch the sails of your vessel taking advantage of the winds of innovation.

            As in the fable cited at the beginning of this text, the house that was not the most prepared to face the challenge that was proposed and to prepare itself requires discipline, commitment and dedication every day and not only once in a while.

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