The Importance of Digital Transformation in the Business Environment

Why is it important to define the IT strategy of a company

Regular monitoring and evaluation of IT strategy become key to maintaining a competitive advantage in a changing technological environment...

  • IT June 2023
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Written by: Marija Đurović, Senior Manager, Egzakta Advisory

Now, even birds on the branch know that we are in the era of digitization and digital transformation that are rapidly changing the business environment all around us. Digitalization has become an integral part of our daily lives, so even ordinary shopping at the supermarket is undergoing its digital metamorphosis because the supermarket staff at the cash register will inevitably ask you if you have their app installed on your phone.

Digital transformation undoubtedly brings many benefits, with the aim of achieving a comparative advantage for companies in the market. Understandably, in the process of a company's digital transformation, among others, one of the key roles is played by the IT department. Although the IT department primarily has the role of supporting the company's business, it is often seen more as an inevitable cost than as a business partner that, together with other departments, strives for the same goal, which is to ensure the growth and development of the company. For this reason, not enough attention is often paid to defining the company's IT strategy, which is of essential importance in today's world. A well-established IT department with a clear strategy becomes one of the main pillars of development, and companies that understand the importance of the IT strategy and are committed to its development have a better chance of long-term success and growth in the digital age.

Although the IT department primarily has the role of supporting the company's business, it is often seen more as an inevitable cost than as a business partner that, together with other departments, strives for the same goal, which is to ensure the growth and development of the company.

However, the IT strategy should not be seen only as a technical issue but as an integral part of the overall business strategy of the company. Without a well-defined IT strategy, a company may face a series of obstacles that can limit its maximum potential. One of the biggest challenges that companies face is the proper alignment of IT initiatives with business goals. Process automation, data management, and the implementation of appropriate software solutions can significantly accelerate work processes and reduce costs. However, whether the goal is to increase revenue, reduce costs, improve the customer experience, or enter new markets, a well-defined IT strategy allows investments to be directed specifically to those technological resources and tools that contribute to achieving those key business objectives.

Following global trends, an increasing number of even smaller companies in the region are recognizing the importance of this process and actively investing in defining their IT strategy, regardless of the industry they operate in.

Companies that have a clearly defined IT strategy can better leverage the benefits of digital transformation. The implementation of new technologies, such as artificial intelligence and machine learning, has the potential to transform the way a company operates and create additional value for its clients. This transformation opens the door to new opportunities for developing innovative products and services that can adapt to changing market needs. In addition, real-time data collection, processing, and analysis allow company management to make strategic decisions based on reliable information and respond quickly to market changes, maintaining a competitive advantage.

One of the biggest challenges that companies face is the proper alignment of IT initiatives with business goals.

In light of these facts, it is clear that defining an IT strategy is crucial for a company that wants to achieve success in the digital age. Following global trends, an increasing number of even smaller companies in the region are recognizing the importance of this process and actively investing in defining their IT strategy, regardless of the industry they operate in. This ubiquitous initiative reflects an increasing awareness that a well-led IT strategy is a key factor in gaining a competitive advantage and achieving long-term success in a business world that relies increasingly on digital technologies.

Last but not least, it is important to note that continuous monitoring and evaluation of the IT strategy are crucial for the long-term success of a company. The technology industry is changing extremely rapidly, and new innovations and trends can be critical to maintaining a competitive advantage. Therefore, regular updating and adapting of the IT strategy is necessary to ensure relevance and efficiency in a changing environment.

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