How much should a company invest in digital transformation?
Johan Bernal N.
4 min read.
Surviving a pandemic should not be an easy task. Nor is understanding that we are in a new era in which all the dynamics of life have changed.
Due to this, almost two years after the appearance of COVID-19, many organizations and entrepreneurs continue in their efforts to move forward with their companies or projects. However, in the process, they have had to understand that the future may be, more than anything else, in the digital world.
Therefore, a digital transformation becomes the most prominent need in the current market.
But perhaps we should slow down a bit and explain the phenomenon, to understand it better:
What is digital transformation?
This concept refers to the process various companies go through to technify their products, services, and strategies with the help of digital technology.
While technification has allowed markets to become more efficient at an industrial level, today small and medium-sized enterprises (SMEs) also enjoy the benefits of technology not only to optimize their product creation processes but also to improve the quality of life of their employees and the management of their teams.
According to the new IDC FutureScape: Worldwide Digital Transformation 2022 Predictions report, "by 2022, more than half of the global economy will be based on or influenced by digital. And by 2023, 90% of organizations worldwide will prioritize investments in digital tools to augment physical spaces and assets with digital experiences". It is possible to understand the potential that technology has concerning the future of business.
But through what elements is it possible for interested businesses to implement their digital transformation processes? Below we tell you about it:
Thinking about digital projects is a wise choice today since the Internet boom is and will be huge in the coming decades. Right now, more and more people become digital users and use cyberspace to purchase products and services, in addition, to communicating with their favorite brands, so organizations should think about developing a digital platform that allows them to sell their products and meet the call of their community.
Optimization of channels (in case they exist):
Another is the case of organizations that wanted to enter cyberspace with technology solutions made from templates and instead of helping ended up hurting their digital journey. Non-intuitive, non-functional technologies have cost them millions and killed their reputation.
So this tactic within the digital transformation allows you to optimize the channels in which you have a digital presence and make them functional and useful for users who browse there so that they can get what they are looking for at the beginning and satisfy their needs.
User Experience (UX/IX):
The user experience (UX) is one of the most important aspects of the website or application development and web designing, as it is responsible for ensuring the efficiency and usefulness that can have a platform for a user browsing it.
It includes the aesthetic and practical part of a website or app and can be assessed through the color palette, distribution of shapes, sizes, uniformity, typography, and functionality, among other things that make a website useful.
Usually, it is common to see it together with the interface design (UI), since they depend on each other.
This experience can be measured by 2 techniques, one is called synthetic monitoring and the other is a census measurement of each user, which is known as traffic/audience.
Digital physical architecture:
According to studies and understanding growth trends, it is thought that by 2023, 90% of organizations will have prioritized their investments in digital tools to expand their physical spaces and assets, with new digital experiences.
So the goal is to strengthen a hybrid digital ecosystem, without losing sight of the fact that physical media are also indispensable within an organization.
Adequate investment in IT infrastructure must go hand in hand with the design of the software solution mentioned above, so digitization comprises what goes beyond the mere presence of a project in the digital world, through social networks or a website or app, and brings together servers, databases and online networks.
IT security and data security:
Today it is not sensible to think of an IT project without cybersecurity considerations that require to protect against malicious acts and avoid vulnerabilities. Viruses, Malware, data, or information theft are becoming more and more common in this new digital era, therefore protection is fundamental for a digitalization process, so this investment must also be incorporated into the budget.
Management and monitoring center:
As soon as you implement your digital channels properly, the management of them is a high priority and requires a minimum of information for monitoring. But this monitoring and incident management must be handled by a trained team, different from those who are already in charge of your operations and the administration of your systems. This, because although they are professionals with similar profiles, they have very different priorities and approaches.
Once you have taken into account the previous steps, you will understand that there are different aspects to worry about and it is time to tell you that there is no exact budget to invest, as this will be determined by the needs of your project or company, so we can talk about budget estimates that it is advisable to range between $ 800,000 and $ 1 million per year, in the case of large companies and solutions of approximately $ 15,000 or $ 20,000 to start the digital transformation of medium-sized companies (SMEs).
However, many solutions can be adjusted to your company's budget and will depend on what you want to start your digital journey. And it is worth mentioning that if you are ready to start, in Axiacore we can help you with your digitalization process immediately, just click on the image below so that our consultants can advise you for free: