Why Digital Transformation (Technology) Is Essential for Businesses Nowadays?

Digital transformation refers to digital technology integration in all business areas, fundamentally changing how a company operate and deliver value to customers. It has shown a change in culture where it requires companies to challenge experiment, status quo and get familiar and comfortable with failure continuously. Majority of the Baby Boomers and Gen-X think that transforming a business digitally will cause the business to be in a long-term decline stage due to lack of knowledge and skills in utilizing the latest technology. It is not so, therefore, there are reasons why digital transformation is important for every business.

Communication with Customers

Technology is essential where it directly affects the ability of a company to communicate with its customers. It allows employees to interact and respond to customers or clients clearly and quickly. Customers can also find answers to their questions in the company’s website. Companies are able to shift products over a large geographic area if they have the option of fast shipment. Businesses have the benefit if customers use technology, for instance, social media such as Facebook or Instagram to interact with a business because better communication is able to create a strong public image.


Security threats and vandalism is a normal thing in this modern era. Hence, it is important to have security in every company. Technology is able to help a business to gain a competitive advantage in the market by protecting confidential executive data or decisions, financial data and other information. Moreover, businesses are able to keep their ideas away from any third parties or competitors by using technology. Using a password can ensure none forthcoming projects will be duplicated by any parties. According to Personal Data Protection Act 2013, monetary fine or imprisonment will be implemented if any third party collect or disclose any information online without the data user’s consent.

Business Culture and Class Relations

A team dynamic within a business can be easily created with the use of technology because better interactions will arise at different locations. For instance, stress and distrust are less likely to arise if managers can communicate with their managers at different location differently. Technology is able to help employees or staffs to see different backgrounds differently as social tensions can become a nightmare for a business.

Operations Efficiency

Businesses can easily understand its company needs in terms of cash flow, physical space and time with the use of technology. By using warehouse inventory technologies, business owners are able to understand the best and most suitable way to manage its storage costs of holding a product. Nonetheless, company executives can also save money and time by implementing meetings over the internet instead of having a proper technology in place at any physical headquarters. According to the recent situation in China, there is a corona virus hit which cause the local governments and companies in China to encourage their workers to work at home such as having video-conferencing at home when needed in order to drag down the overall trends of corona virus fears. According to the updated research, Malaysia have 99 out of 110,092 cases of corona virus outbreak. Hence, companies should practice such culture in order to increase efficiency and also reducing travelling time and cost. This has shown how important is digital transformation towards a company.

Research Capacity

Having a technology capacity to research new opportunities is able to direct the business to stay a step ahead of its competitors. A business is able to survive in the digital market if it is able to grow and acquire new opportunities. A business that uses internet to conduct its internet is able to travel into new markets virtually with lower costs and risks.

To conclude, business owners nowadays are encouraged to gain knowledge on the latest technology in order to be updated from time to time. Digital transformation is very important for all businesses as the generation nowadays are more technology savvy. Hence, communication with customers, setting online security, having a dynamic business culture and class relations, efficient operations and sufficient research capacity is essential for a company where they can easily build customer’s trust and its company image to be a reliable and trustworthy company in future.