Information Technology

<p style="text-align: justify;">The senior management of most companies today are making great efforts in their focus on Digital Transformation.</p><p style="text-align: justify;">But the question is what is digital transformation?</p><p style="text-align: justify;">Until this concept really matures, it continues to carry a wide variety of definitions and/or implementations. Taking one small idea of digital transformation to develop might involve the purchasing of software with the cloud in mind. &nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Software as a Service (SaaS)</span></h2><p style="text-align: justify;">Traditionally, the software has been purchased with the concept of a perpetual use license with annual software maintenance to keep upgrades and support available.</p><p style="text-align: justify;">With the continued acceptance by companies expanding their use of the cloud, almost every vendor has or will enable these companies to now purchase software as a service (SaaS).&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 12pt;">Benefits of purchasing SaaS</span></h3><p style="text-align: justify;">There are some great benefits of purchasing software this way. Some examples might include the following:</p><ul><li style="text-align: justify;">Lower upfront Capex cost allowing many purchases to remain as an opex expenditure</li><li style="text-align: justify;">Shorter less obtrusive upgrades as many vendors have changed their new release schedule to follow a more waterfall or agile R&amp;D cycle</li><li style="text-align: justify;">The ability to add and subtract software functionality with very little effort</li><li style="text-align: justify;">Lower local IT expenses for both hardware and software since the software installation and licensing are now managed in the cloud</li></ul><p style="text-align: justify;">As was stated at the beginning of this article, Digital Transformation can represent many things and as described above, software subscriptions are just one way that is truly part of this business revolution.</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/russell-barnes/">Russell Barnes</a></em></span></p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Russell Barnes</span></h3><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. What is digital transformation in an organization?</span></h2><p style="text-align: justify;">Digital Transformation is all about incorporating computer-based technologies into all areas of business including products, processes, and strategies.</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. How Software-as-a-Service Enables Digital Transformation?</span></h2><p style="text-align: justify;">SaaS is critical to digital transformation as it allows the organization to pay for advanced technology within their operational budget. It helps in improving resource allocation, enables business agility, and is more customer focused.</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. What are the 3 main areas of digital transformation?</span></h2><ul><li style="text-align: justify;">Process transformation&nbsp;</li><li style="text-align: justify;">Cultural/Organizational transformation&nbsp;</li><li style="text-align: justify;">Domain Transformation</li></ul><p>&nbsp;</p>