Digital transformation describes the process of digitization of society enhanced by the widespread use of the Internet and globalization. The use of technology and access to the Internet has caused exponential changes in the market that are difficult to face by organizations that continue with a post-industrial business model. Randall Castillo Ortega, an entrepreneur and global trade expert, explains the components of digital transformation.

The objective of the digital transformation of companies is to improve the ability to adapt to exponential market changes. The reduction of the “time-to-market” consists of the rapid adaptation of the value offered by companies to the continuous and changing needs of their customers and to the forces of the macro environment that are not controllable.

Explains Castillo, “To reduce the time to adapt to the market, companies must resort to the use of several enablers. Among these are a customer-centric approach, process reengineering, innovation, digital culture, technology, digital business and digital marketing.”

The success of a company no longer lies solely in the development of quality products. Still, we must adapt to the needs, tastes, preferences and buying habits of users, aligning the delivery of value for both the customer and the company. The key is not to make the company's commercial actions profitable at all costs, but to create value for both parties.

The customer-centric strategy is based on a strategic approach that puts the user at the center, giving each customer what they need and deserve, unlike companies that focus on recruitment at all costs, instead of pursuing customer satisfaction and retention.

To implement a customer-centric strategy, it is necessary to know the current satisfaction of our customers, maintain updated databases, segment, detect new needs, know what channels exist to reach our customers, and ultimately, adapt dynamically to market changes.

Based on the principle that the customer is at the center, we must propose a strategy based on the definition of a very precise segmentation, active listening, the design of experiences and the interpretation of the data of the different sources of information that we obtain from the user.

Once the processes in the company have been optimized, it is studied, in which case the application of technology can improve the results, which can be digitized and which can be automated. But we must not forget that process engineering does not incorporate technology per se unless it provides strategic value or improves the specific performance of that process, understanding as a process the set of activities ordered and oriented to meet a specific objective.

Innovation has become the engine that drives the digital transformation of companies. It is no longer enough to bring out a quality product at a good price. Today's challenge is to have the ability to do something different. In recent years, innovation has been limited to the incremental improvement of the functionalities, characteristics or price of the product. Still, in a globalized market with access to all kinds of information, that is no longer enough.

The digital culture in the company refers to the relationships between employees, customers and suppliers in an increasingly digital world where technology has become a great facilitator. It consists of a change of mentality that involves incorporating the digital vision into all the decisions we make as a company. This digital vision affects all departments and areas of the organization equally.

Collaborative environments, open management, digital skills and mindset, employee agility and flexibility, customer orientation, use of data and transparency, are great enablers to accelerate the implementation of digital culture. “It does not depend solely on implementing technology and training employees in its proper use. Attributes such as transparency are difficult to manage in traditional companies that are threatened by the free flow of information,” adds Castillo.

Digital marketing is the set of strategies based on the use of technological resources and digital media aimed at knowing the market, analyzing their interests, offering value and satisfying customers with a profit objective. The big difference with traditional marketing is that communication is immediate, interactive, two-way, personalized and measurable.

Digital marketing must be integrated naturally with the general marketing of the company by developing omnichannel marketing strategies, where we combine offline and online channels to improve and unify the customer experience.

About Randall Castillo Ortega

Randall Castillo Ortega has been involved in the financial space virtually his entire professional career. In addition to having founded the financial lending firm RACO, he is also an avid outdoorsman and, along with his family, is a huge community supporter. He regularly participates in community ceremonies and events organized to drive a better environment for children and families.

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