Digital transformation hinges on integration as its fundamental building block: the seamless integration of various digital technologies for optimized performance and enhanced user experience.
Going digital is no longer an option, it's a necessity for businesses looking to stay competitive. And while many focus on technology advancements, they often overlook the crucial role integration plays in making it all work seamlessly. Almost 90% of companies are currently pursuing digital transformation, yet integration challenges remain a major barrier to success (McKinsey).
In our recent article, we shed light on the symbiotic relationship between digital transformation and integration, explaining how they eliminate barriers between people and technology, creating a world where data flows freely and business processes thrive.
What Is Digital Transformation In Business?
Simply put, digital transformation is a continuous process that enables businesses to improve their customer experience, lower costs, and maintain a competitive edge. This doesn't mean just embracing technology, but removing the barriers between people and technology to create a collaborative work environment. The key to achieving this is a seamless data flow, accomplished through an integrated system that unifies business and IT processes.
What Sets a Digitally Transformed Company Apart?
Compared to traditional "paper" businesses, digitally transformed companies operate in a whole new ball game. Here's how they differ:
| Digital Transformed Company | On-paper Business ||------------------------------|-------------------|| Streamlined processes | Inefficient processes || Seamless data flow | Data silos || Real-time insights | Delayed insights || Scalability & Flexibility | Rigid systems |
The Most Common Hurdle in Digital Transformation
According to MuleSoft's study, 80% of CIOs cite integration issues as the main barrier to success. With organizations using an average of 1,061 different applications, ensuring seamless connectivity between them is paramount. Unfortunately, only 29% of applications are integrated, leading to inefficiencies and increased costs. On average, enterprises are already spending $9.5 million on failed digital transformation initiatives due to integration woes.
Integration in the Digital Transformation Process
In digital transformation, integration refers to the process of connecting systems and applications to eliminate data silos and streamline user interfaces. This is essential for modernizing processes and creating a cohesive technology environment. In other words, integration is the first and most important step in a digital transformation process.
The Impact of Integration in Digital Transformation
1. Eliminating Silos
Integration helps break down data silos, fostering a more cohesive and unified data environment. This is crucial for modernizing technology-embedded processes.
2. Building a Modern Data Platform
Integration in the early stages allows you to construct a new data platform that supports both legacy and new processes, ensuring a smooth transition during digital transformation.
3. Avoiding Costly Mistakes
Effective integration in the early stages can mitigate the risks and costs of failed digital transformation programs by ensuring smoother transitions and more reliable outcomes.
4. Managing Increasing Complexity
With the average organization using 1,061 different applications, integration is essential for ensuring these applications can communicate and share data effectively.
GenAI: The Game-Changer in Digital Transformation
GenAI, powered by AI and automation, offers innovative solutions for driving digital transformation. However, success depends on aligning AI initiatives with business goals to avoid wasted resources. Inclusion Cloud keeps you updated on the latest trends, news, and events in AI and digital transformation, ensuring you stay ahead of the curve. Follow us on LinkedIn to stay informed and drive meaningful change.
Technology plays a pivotal role in achieving accessibility during digital transformation, as seamless integration eliminates data silos and streamlines user interfaces, making it easier for individuals to interact with the digital environment. Moreover, accessibility is not merely about making systems usable by those with disabilities, but also about ensuring that everyone, regardless of their technical proficiency, can effectively engage with the technology that powers a digitally transformed business.
