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What is Digital Transformation and Why Does it Matter?

Beyond the buzzword, what does digital transformation mean for a business, how does it increase efficiency, and what is our role in the process?

Digital transformation is more than just implementing ERP, CRM, or Business Intelligence solutions. It means adapting your business to new technological realities to become more agile, efficient, and customer-centric. Why is this important? The difference between a company that adopts technology and one that ignores it can ultimately mean the difference between thriving and exiting the market.

Take a compelling example: Nokia, once a global leader in mobile phones, disappeared from the market in just a few years because it failed to adapt to rapid industry changes. If you want your business to grow in an increasingly competitive market, you need agility to adapt quickly.

Currently, in Romania, one of the biggest challenges for companies is the shortage of qualified labor and the ever-rising cost of employees. How can you grow your business when human resource costs keep increasing? The answer is simple: increasing productivity and efficiency – and this is precisely the role of digital transformation.

What Does Digital Transformation Mean?

Digital transformation involves integrating digital technologies into all business processes. This doesn’t just mean adopting new software but also requires a change in the way work is done and in organizational culture.

In short, digital transformation involves:

  • Automating processes to save time and resources.
  • Leveraging data for better and faster decision-making.
  • Improving customer experience through more efficient interactions.
  • Adapting to market changes through greater flexibility and continuous innovation.

Let’s explain each objective through concrete examples.

Process Automation

Imagine two salespeople from two distribution companies, both receiving a request for an offer:

  • The salesperson at Company A will create it in Excel, which will take a few hours.
  • Company B is digitalized, so the salesperson uses an app that:
    • filters products according to the client’s criteria,
    • shows current stock and incoming supplies,
    • allows them to offer a discount within a pre-approved range,
    • automatically generates a professional PDF with the company’s letterhead and all necessary information,
    • automatically adds links to product descriptions, certifications, and other relevant details,
    • reserves stock or provides availability information.

Additionally, the app allows the salesperson to transform the offer into an invoice with a single click, which is automatically sent to the ERP system and e-Invoice.

Which of the two salespeople is more efficient? Who spends more time talking to customers, and who is stuck in spreadsheets? Who can manage more clients more effectively?

Leveraging Data

Continuing the topic of “better client management,” the salesperson at Company B has access to a Business Intelligence (BI) system that analyzes client data and shows performance for each product range, compared to previous periods, segmented by industry, profile, size, etc. Additionally, the system suggests new products based on what their colleagues have sold to similar segments.

All that remains is to schedule meetings and discuss how they can diversify the offer according to what best suits the client.

Meanwhile, the first salesperson is still working in Excel and has also mixed up a few links to the product compliance documents.

Improving Customer Experience

The first salesperson’s client finally receives the offer and accepts it, only to find that one product is out of stock and another has not yet been restocked—it will be available in a few days. Now they need to find an alternative source quickly.

Meanwhile, the client of the second salesperson receives the offer, and stock is confirmed and reserved. They confirm the order and immediately receive an email with delivery date, package dimensions, and weight. All of this happens while the salesperson discusses what other products are in demand from similar clients and why.

The salesperson at the digitalized company has time to discuss other ideas with the client, as repetitive, time-consuming tasks are handled by software applications, allowing them to focus on building relationships and growing the business.

Adapting to Market Changes

The digitalized company notices a drop in turnover. They look for answers in the data, and the BI solution indicates that a product line is declining across all segments. They realize that market preferences have shifted, so they quickly adjust their offer by replacing underperforming products with a new range aligned with current demands.

They also find that a competitor is even faster and more efficient because they implemented an AI-based solution that automates their processes even better and more accurately. To keep up, they contact Colia to begin the next digital transformation process. 😊

Meanwhile, Company A, which isn’t digitalized, has lost Excel files due to a laptop failure and is struggling to recover the lost information.

What Are the Objectives of Digital Transformation?

The first step in an effective digital transformation strategy is setting clear, realistic objectives that match the company’s resources and budget. These should be measurable so that progress can be tracked consistently.

Typically, they fall into the following categories:

  1. Improved operational efficiency: By automating manual and repetitive processes, companies save valuable time and resources. For example, automating invoicing, inventory management, or internal communication reduces error risk and shortens work times. Employees can focus on tasks that add real value instead of being tied down by routine tasks.
  2. Cost reduction: Digital technologies help optimize resources and eliminate waste. For example, through better stock management, companies can avoid both overstocking, which ties up capital, and stock shortages, which can lead to lost sales.
  3. Data-driven decisions: Quick access to data and analysis tools allows managers to make informed, timely decisions. Instead of relying on assumptions or intuition, companies can analyze market trends, client behavior, and internal performance in real-time. This means a better ability to anticipate client needs, identify opportunities, and respond to market changes ahead of the competition.
  4. Improved customer experience: Digital transformation enables a more consistent experience for clients, regardless of the communication channel, which increases satisfaction and loyalty. Fast responses and accurate information based on real-time data significantly reduce the risk of future issues that consume time and harm client relationships.
  5. Adaptability and continuous innovation: A digitalized company is more flexible and open to innovation, able to experiment with new solutions and quickly adapt to market changes—an essential advantage in a constantly changing market.

How Can We Help with the Digital Transformation Process?

Digital transformation can seem complex and overwhelming, especially without in-house technical expertise. How do you choose a solution among thousands of options available on the market? Every provider will tell you that theirs is the best and most suitable for you. How do you redefine processes to maximize the benefits of technology while ensuring profitability? What is the correct price? What do you do if the provider doesn’t deliver as expected or on time?

This is where we come in. Our role is to simplify this process and assist you throughout—from analyzing current processes to launching new systems into production.

Here’s how we support you at every stage of digital transformation:

  • Strategic consulting: We help identify the areas of your business that can benefit the most from digitalization and develop a strategy tailored to your goals.
  • Vendor selection and integration: Colia works with the best technology providers to find customized solutions. We ensure that their integration minimizes disruptions and maximizes added value.
  • Implementation support: We actively support you throughout the implementation, handling up to 80% of the clarifications needed by the implementer, freeing up your time to focus on your business.
  • Monitoring and adaptation: Colia supports you in the long term, adapting processes and technologies to market demands, ensuring sustainable growth.

If you’d like to find out how digitalization can make your business more efficient, don’t hesitate to contact us. We’d love to exchange ideas.