In 2007, friends and business associates were convinced that Reed Hastings and Marc Randolph were nuts! These two men were partners in what was essentially a DVD rental business, at a time when companies like Blockbuster were dominating this retail niche. Against all odds, they had figured out how to make money with their venture.
Then, in one of the gutsiest moves in the history of motion picture entertainment, when their company was profitable, Hastings and Randolph decided to fundamentally change their business model. Their company was called Netflix and its digital transformation was about to become legendary.
Despite the challenges with subscription erosion that Netflix is juggling in 2022, many media experts believe the company INVENTED the streaming service concept 15 years earlier. In this brilliant historical perspective of the company, it was noted that “Before making the switch to streaming, Netflix essentially aggregated physical DVDs into warehouses, then used the internet to deliver them to subscribers. With streaming, Netflix instead aggregated entertainment content onto servers, then distributed that content instantly to customers.”
This is a classic business case study of the value of digital transformation, and it’s one that the software experts at Asinpa have learned well. Focused on enterprise-level software development and strategy, Asinpa is dedicated to helping clients achieve business goals through customized value driven solutions, utilizing an on-site and near-shore service model with predictable, measurable, and fully transparent processes.
With its exemplary track record of helping clients with agile software development, the company brings considerable expertise to digital transformation.
What is Digital Transformation?
A simple definition of digital transformation is appropriate to consider. Asinpa assists companies translate its data into knowledge and then integrates that value into the company’s business model. This process results in many benefits to the company.
According to Tim Paul, a Principal Solutions Architect for Asinpa, there are at least six reasons a company should consider digital transformation.
“One of the most important reasons for completing this process is that it enables cost reduction and/or increases revenues,” Paul said. “It also empowers employees by delivering automation, resulting in increased productivity and it helps them understand the customer’s real needs which leads to better customer service.
“Properly designed and executed digital transformation provides insight into the next level of products and services that the client can consume, and this can result in more usable products and services, translating into more revenue for the enterprise.
“Finally, it allows for better governance and compliance with the myriad regulations that every company must navigate.”
With all these benefits, why would any company delay transforming its operational data into a digital format?
“There are a couple of reasons for this delay,” Paul said. “Many companies have little understanding of the process for digitization. Plus, there is often a lack of in-house expertise necessary to digitize operational data into the most efficient format. Finally, many companies do not have the appropriate systems required to use this digitized data.
“We can help companies with each of these challenges.”
Digital Transformation in Human Capital Management
Managing the human resources of any sized company is particularly tough in the era of “The Great Resignation.” Some of this employee discontent is the result of inefficient processes due to outdated data management. Digital transformation can improve a company’s Human Capital Management (HCM).
“Attracting and retaining valuable employees has become one of the most important ‘jobs’ of every company,” said Asinpa CEO, Gustavo (Tavo) Vasconcelos. “Digital transformation can turn cumbersome processes into highly effective and efficient processes, balancing the daily work experience.
“This new employee efficiency becomes even more important when a company decides to expand to the global marketplace. Digital transformation can streamline customer relations, marketing, product and service offerings and operational efficiencies. The people managing these areas will be able to do their jobs better, and in the process, feel better about their future with the company.
“Finally, some of our clients have chosen to work with “enterprise resource planning” (ERP) software, and digital transformation is critical for this tool to be effective. ERP software systems can be hard for employees to navigate. It has many different inputs and outputs that make for tedious workflows and processes. Digital transformation can help turn those tedious workflows and processes into those that are efficient.”.
What’s Involved in Completing a Digital Transformation?
For many CEOs and CIOs, the process of converting cumbersome data into usable knowledge may seem daunting. However, with proper expertise, the process is certainly manageable.
“Our process has worked well for all of our clients and it’s very straight-forward,” said Tim Paul. “We approach each digital transformation project with these steps:
- We interview key individuals to understand the business operationally.
- We research and analyze all operational processes.
- An analysis of existing data is completed to understand the client’s current platform.
- We thoroughly research staff and their expertise to either supplement our work or allow us to completely manage the digital transformation project.”