Digital transformation in business is defined as “the integration and application of digital technology to enhance business efficiency, management effectiveness, increase capabilities, competitiveness of the enterprise, and create new value.”

Digital transformation activities may include digitizing business and management data, applying digital technology to automate and optimize business processes, management processes, production and business processes, reporting processes, and coordinating work within the enterprise, to the complete transformation of the business model, creating additional value for the enterprise.

Digital transformation can leverage any digital technologies, including ERP software, CRM systems, e-commerce, BI, mobile applications, analytics tools, Internet of Things with various capabilities, etc. It is important to note that digital transformation should inherit and flexibly utilize innovative technologies without being limited to any specific technology. The digital transformation strategy is deeply rooted in a comprehensive business strategy rather than the need to upgrade the current IT system.

Digital transformation is typically a revolutionary change in business operations, while ERP implementation focuses on incremental improvements. Additionally, digital transformation often involves the adoption of innovative technologies that may not have been previously used in the organization. On the other hand, ERP implementation is more closely related to upgrading outdated office systems. However, ERP systems can coexist with digital transformation and are often a component of a comprehensive digital transformation strategy. ERP aids in digital transformation by enhancing the organization’s system management capabilities. New and upcoming ERP systems are increasingly being developed to include restructuring capabilities that create an enabling environment for digital transformation.

Although embarking on a digital transformation journey can come with many challenges, it doesn’t mean you have to do it alone. There are numerous digital transformation consultants available to support businesses in their journey, as well as many success stories related to businesses that have undergone positive changes. Government support organizations are also starting to take action and assist businesses in their risk-laden journey, ensuring they are not alone in this endeavor.

It can be asserted that the belief that digital transformation is not suitable for small and medium-sized businesses is incorrect. In reality, all businesses can become outdated, unable to keep up with market trends and other businesses without digital technology. The ability to apply digital technology depends largely on the scale of the business, but ignoring digital technology is certainly not possible in the near future. Companies of different scales should analyze and plan to adopt digital technologies.

Translation: The viewpoint that digital transformation mainly focuses on IT solutions and is not relevant to other departments within a business is a misconception. The convergence of business, management, and technology is the key to digital transformation. Only when business executives understand and collaborate with senior managers can successful transformation truly take place. Digital transformation requires careful planning and involvement across functional departments to be successfully implemented.

Comprehensive digital transformation can take anywhere from 2 to 3 years or even longer. Many businesses already have multiple IT systems in place or have partially implemented digital initiatives, which can expedite the process. The time it takes for a business to partially undergo digital conversion depends on their technological capabilities, infrastructure, financial resources, and priorities. Digital conversion will result in various changes, including workforce restructuring; however, this is an inherent requirement, similar to how most people adapt to using software on mobile phones, which is generally accepted with awareness. During the conversion, certain departments may become more streamlined, and the business will need to allocate new tasks for any redundant resources.

There are various methodologies and approaches to implementing digital transformation (such as synchronous, partial, project-based, etc.) with different objectives, resulting in varying workloads. Based on the workload and roadmap, businesses decide on three approaches to staffing: hiring, self-performing, or a combination of both. Businesses can hire experts or outsource to companies for support. For medium and small-scale operations, it is advisable to hire consultants and then train or recruit personnel to take charge and handle the transformation internally. If time is limited, businesses should consider hiring parallel implementation consultants while simultaneously recruiting staff to take over. At a minimum, a business needs two individuals (one leader and one full-time specialist) to begin planning for digital conversion. When implementing projects, additional personnel can be sourced from specialized departments and limited specialized staff can be recruited. Businesses can also establish new departments or teams to carry out and operate digital transformation projects if there are significant differences and a need for specialized ongoing operations.

In the majority of cases, businesses are advised to deploy on cloud computing infrastructure. This allows for flexible scalability and cost optimization. If a business were to invest in large servers from the beginning, it would require significant upfront investment. However, by leveraging cloud technology, businesses can start with a small-scale rental and quickly and easily scale up as needed without disrupting operations. Additionally, cloud computing platforms offer high availability, rarely experiencing downtime, and have strong security measures in place, making it difficult for them to be compromised. As a result, businesses can also reduce the cost of investing in additional information security infrastructure.