How Data Transformation Plays A Crucial Role in Successful Digital Transformation

There’s no denying that businesses nowadays are relying more on data. With data at the core of  new technologies and processes, organizations are changing the way that they do business and are undertaking digital transformations to get them there.

Data usage and consumption changed drastically over the past few years, generating massive datasets. All this data is shaping business and creating new models, and digital transformation data is the key to unlocking the value held within their data for most organizations.

According to a research conducted by Forrester, 85% of the businesses surveyed said that they are planning to improve how they use data to help with insights in decision-making. So digital transformation, and the new ways that technology is being used to improve performance inside organizations, is happening fast, and data transformation is crucial to help in a successful digital transformation.

The path towards digital transformation data is intelligent data management and the implementation of advanced data analytics, AI (artificial intelligence), ML (machine learning) and effective data quality and governance processes.

In the context that most organizations live now, data transformation is much more than the traditional “extract the data, transform and load”, now more complete analysis needs to be done with real-time data that will give the business the power to create transformational strategies. The amount of data generated every single minute means nothing if the organization is not using it as a valuable resource. 

What Is Data Transformation?

Data transformation is a process that changes the format, structure and values of data. It involves data integration, data migration and data warehousing. In data analytics, data can be transformed at two stages: 

The first is when organizations use data warehouses and generally use ETL (extract, transform, load) processes, making data transformation the middle step in the flow. The second, and the most common, is when organizations use a cloud-based data warehouse, in which resources can be measured in seconds. The cloud platform allows companies to load raw data into the data warehouse. 

Data transformation is the process of building data (adding, copying, replicating), destroying data (deleting records), standardizing and making structural changes in it (changing the names, moving the information and combining data).

What Is Digital Transformation? 

Digital transformation is the implementation and integration of digital technologies into the business to change how it operates and bring more value to its deliveries – it can be implemented to create new processes or modify the already existing ones. But digital transformation data also needs to include cultural change inside companies to keep changes going and ensure that their processes are continuously challenging the status quo. 

The term digital transformation itself can mean different things according to what the organization needs and will do to implement it. The most basic application of digital transformation is the movement to change processes and operations from an offline environment to an online and digital one. But it can also mean anything from setting up or upgrading a mobile app, to website development or improving current processes to digitize the entire organization. 

What Is Involved in Digital Transformation?

Digital transformation should be undertaken by companies as an evolution of their data strategy by taking advantage of their data. It’s a way of getting the best out of their technology and using the outcomes of data transformation to help in decision-making.

An effective digital transformation process is not only adopting new tools, but also the combination of effective data collection with artificial intelligence that will inform the business what data was collected, who collected it and what are the sources – especially for the business to track the changes the data has gone through.

Then, the combination of the tools that brought the digital transformation and the data transformation collected combine to give the business the insights they need to work on their decisions, growth, revenue, etc.

The key areas that should be considered crucial for a successful digital transformation are:

The amount of data and technologies used have multiplied in the past years, so companies need to work on their digital transformation and combine it with the right data to build a solid foundation for moving forward and advancing their cause.

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