In recent years, the era of digital transformation based on cloud computing, big data, IoT, AI, social, and mobile technologies has come silently, and digital transformation has become a hot issue in all sectors. So what is digital transformation? Why should each enterprise carry out digital transformation? How to carry out digital transformation? What opportunities and changes will it bring? Recently, Mr. Qingfa Li, Senior Vice President of iSoftStone Information Technology (Group) Co., Ltd. (iSoftStone), and Mr. Jack Liu, Vice President of iSoftStone, were interviewed.

To be digitally transformed or knocked out

Essentially, the digital transformation is to prepare a series of business strategies, such that enterprises can choose appropriate digital technologies to reconstruct all aspects of their business processes, management modes and production methods to adapt to new competitions and gain competitive advantages. According to Mr. Liu, "in the context of modern information network, customers' energy, taking insurance companies as an example, is on mobile phones. Is it competitive to provide PC solutions? They may not be competitive without digital transformation, and then be knocked out by the industry. So all industries are urgently undergoing digital transformation. Only by providing customers with efficient insurance services through technologies such as AI and fast claims images can customers' needs be met."

Mr. Liu also believed that digitalization has become the basis of existence for an enterprise at the present stage, and the only way for an enterprise to move to the next stage. "A lot of enterprises may be troubled, disadvantaged and even eliminated in a major revolution if they don't turn to digital transformation, accept the digital process with an open mind, or enjoy the technological advantages brought about by digitalization."

Correctly capture the key point of digital transformation

How should enterprises carry out digital transformation? IT technology, the foundation of digital transformation, must be noted. The digital transformation of enterprises is a process and driven by innovative technologies such as big data, cloud computing and the Internet, "In this process, different enterprises require different technical means. For example, the financial industry is better conditioned, and the technology used may be AI and big data; but for the traditional manufacturing industry, IoT is in greater urgency." Mr. Li believed that the future digital transformation was mainly a type of IT technology service, which can transform the understanding of a certain industry into IT language and realize it with IT technology.

Digital transformation is based on cloud computing, big data, AI, IoT, and other technical means, but it is more important to deeply understand the pain points of enterprises. But how to ensure the successful digital transformation of enterprises? iSoftStone has provided digital transformation services to hundreds of enterprises and is quite experienced in this field. According to their experience, finding and understanding the pain points of enterprises that need transformation is the correct way of digital transformation. Mr. Li mentioned that consultants and architects could tell how to build the technical architecture and how to design the scene based on pain points and get the starting point by means of the technology to transform the business model. "This is a heavy work and is to realize the change of profit model, instead of simple business efficiency improvement."

 Choosing the right service provider is also a key to successful digital transformation. Mr. Li remarked that digital transformation was time-consuming for enterprises and required service providers to have enough growth potential and enough scale. The journalist learned that iSoftStone now has nearly 40,000 employees, 60+ branches in China, nearly 170 branches in 66 cities worldwide, and 33 global delivery centers, which can better approach and serve customers. "A central enterprise has subsidiaries all over the world. How can small companies serve it? How can they help such a central enterprise carry out digital transformation without branches? So iSoftStone has far surpassed peers in urban layout." Mr. Li disclosed.

Digital transformation may change the "genes" of enterprises

"The wave of digital transformation will definitely divide enterprises into active responder and slow actor." Mr. Jack Liu believed that whoever can firmly follow the trend of digital transformation would have a great improvement in its operational efficiency, and its business model would see some "genetic" changes in the process of digital transformation. "This also requires enterprises to truly understand their business and understand what value can be realized through a digital transformation, and finally get a complete digital experience and improvement." Mr. Liu said.

When the subjective and objective conditions of digital transformation have been met, what can it bring to enterprises finally? Mr. Li, by using a simple case, illustrated that "digital transformation is business transformation in the final analysis. For example, a company that produces elevators used to be a manufacturer, with the goal of producing and selling elevator. After the transformation, its business is changed to renting elevators, taking charge of elevator operation and maintenance, and having the right to operate elevators. By then, the company can notice the business opportunities of elevator advertising by means of information technology, and its business can be expanded to the advertising field. After that, this company has been transformed from a traditional manufacturer to a service-oriented company, realizing a gorgeous turn in business model, and transforming from Made in China to Intelligent Manufacturing in China."