Digital transformation

Defining digital transformation

Digital transformation refers to the integration of digital technologies into all the activities of a company or organization. It brings about fundamental changes in the way companies operate, interact with their customers, and create value. This transformation is not limited to the adoption of technological tools, but also encompasses the evolution of processes, business models and corporate culture. It aims to improve the organization's efficiency, agility and competitiveness in an increasingly digital marketplace.

Why is it essential?

Today, digital transformation is essential for companies wishing to remain competitive in a globalized, constantly evolving environment. It not only enables them to adapt to new customer expectations, but also to increase productivity, simplify processes, and make decisions more rapidly thanks to data analysis.

The 4 main pillars of digital transformation

1. Process automation: The use of digital technologies, such as artificial intelligence (AI) or robotization, to automate repetitive tasks and improve efficiency.
2. Digitizing customer interactions: This includes setting up digital channels (e-commerce, mobile applications, social networks, etc.) to better meet consumer needs and offer a smoother user experience.
3. Data management: Optimizing data collection and analysis enables companies to better understand their customers, anticipate trends and personalize their offers.
4. Innovation and agility: To keep pace with rapidly evolving technologies and market needs, companies need to adopt a culture of continuous innovation and flexibility in their operations.

Benefits for companies

• Improved customer experience: Digital tools enable us to better understand customer expectations and interact with them more effectively, for example via chatbots, mobile apps, or personalized online services.
• Optimizing costs and resources: automating and dematerializing internal processes helps to reduce costs, improve productivity, and allocate resources more efficiently.
• Increased competitiveness: Companies that integrate digital into their business model are better able to respond quickly to market changes, launch more innovative products, and differentiate themselves from the competition.
• Informed decision-making: Digital transformation enables companies to make more strategic decisions thanks to real-time data analysis.

Use case: Schneider Electric's digital transformation

Schneider Electric, a world leader in energy management and automation, has embarked on an ambitious digital transformation to improve its internal operations, products and customer experience. Here's how this transformation came about:

Background and objectives

Faced with a rapidly changing market and increasing pressure to innovate, Schneider Electric has identified several key objectives for its digital transformation:

• Increase operational efficiency by automating processes and harnessing the power of data.
• Offer a better customer experience through more connected and personalized solutions.
• Strengthen innovation by integrating new technologies such as artificial intelligence and the Internet of Things (IoT).

Implementation

Schneider Electric launched a digital transformation program called Schneider Electric Exchange, a digital platform that enables customers, partners and developers to collaborate and co-create innovative solutions. The strategy was based on several axes:

1. Automating and digitizing internal processes:Schneider Electric has adopted AI-based solutions to automate inventory management, improve predictive maintenance and optimize energy efficiency in its plants. The integration of these technologies has enabled a reduction in operational costs and a better allocation of resources.
2. Use of IoT and data:The company has integrated IoT sensors into its products to collect real-time data, enabling proactive management and smarter services. For example, thanks to the EcoStruxure™ solution, Schneider Electric can monitor energy use in its customers' buildings in real time and propose automatic optimizations.
3. Enhanced customer experience:Digital transformation has enabled Schneider Electric to introduce digital services for its customers, such as personalized dashboards, real-time alerts, and recommendations based on data analysis. These innovations have strengthened customer relationships and delivered more value through connected services.
4. Training and digital adoption:To facilitate the adoption of these new technologies internally, Schneider Electric has set up training programs and support tools for its employees, while fostering a culture of innovation and agility.

Results

• Cost reduction: Schneider Electric has cut inventory management costs by 30% thanks to the automation and optimization of internal processes.
• Improved energy efficiency: thanks to the EcoStruxure™ solution, Schneider customers have achieved up to 20% energy savings in the management of their facilities.
• Increased customer satisfaction: Customer satisfaction has risen significantly, thanks in particular to our personalized services and rapid response times.

Schneider Electric's digital transformation shows how a traditional company can leverage digital technologies to not only optimize its operations, but also offer new, high value-added services. By integrating automation, IoT and data management, Schneider Electric has succeeded in positioning itself as an innovative and agile player in a rapidly changing market.

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Key figures on digital transformation

• 87% of executives consider digital transformation to be a strategic priority for their company. -Gartner
• Companies that have begun their digital transformation are 26% more profitable than their competitors who have not yet done so. -MIT Sloan
• In 2023, 65% of companies worldwide will have a digital transformation strategy in place, compared with just 38% in 2017. -Statista

The challenges of digital transformation

Despite its many advantages, digital transformation can be fraught with obstacles:

1. Resistance to change: The adoption of new technologies can sometimes be poorly perceived by employees, who fear for their jobs or feel insufficiently trained.
2. Lack of digital skills: Digital transformation requires specialized talent in areas such as data management, cybersecurity or artificial intelligence, skills that are sometimes rare on the market.
3. Initial costs: Although profitable in the long term, implementing digital technologies and re-engineering internal processes can represent a significant investment for some companies.

Strategies for successful digital transformation

• Involving employees: It's crucial to support teams throughout the transformation process, notably through training and regular communication on the expected benefits.
• Putting the customer at the center: Digitization must be geared towards improving the user experience. Solutions must meet real customer needs.
• Rely on specialized partners: Many companies opt for solutions developed by digital adoption experts, such as those offered by Knowmore, to achieve successful transformation while minimizing risk.

Conclusion

Digital transformation is no longer an option, but a necessity for companies wishing to remain relevant and competitive in an ever-changing economic environment. Companies need to adopt a proactive approach, aligning their digital strategies with their global objectives and involving all their teams to maximize the results of this transformation.

Discover how Knowmore solutions can support your digital transformation. Our tools help accelerate the adoption of new technologies while optimizing user experience and business processes. Explore our solutions to find out more!

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