What is Digital Transformation and How Can Carriers Benefit?

Mar 24, 2023


Digital transformation is an increasingly essential aspect of running a successful fleet. It involves taking business processes and procedures that are outdated, inefficient, and expensive to run, and replacing them with more automated solutions that increase productivity and efficiency.

Every company functions differently, so the path to achieving digital transformation will change from one business to the next. A majority of organizations report the transformation as a critical driver of growth, but success isn’t guaranteed.

Carriers who want to experience the benefits of transformation will need to review core business activities, determine appropriate goals, and strategize accordingly. This greatly increases the likelihood of a successful digital transformation while avoiding potential pitfalls.

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Why digital transformation accelerated out of necessity

At the start of the pandemic, organizations around the world found themselves exposed to an unexpected boost in digitalization. To survive, organizations had to accelerate their digital transformation plans by engaging with the digital economy.

Organizations engaging with the digital economy had to review their core activities and identify:

  • Aspects of their business that needed to be transformed
  • What technologies to adopt
  • Which processes to automate
  • New business models to consider

Companies also had to consider the potential impact of their transformation on customers and unify the customer experience.

Easier said than done. A study by Deloitte revealed that “85% of CEOs that accelerated digital initiatives during the pandemic cannot articulate their overall strategy and progress.” This shows the speed and complexity of digital transformation for individual organizations and the business landscape as a whole.

An in-depth understanding of digital transformation isn’t required to benefit from it. A PwC survey found that “60% of executives said that digital transformation was their most critical growth driver in 2022.” It follows that carriers who successfully implement digital transformation initiatives will experience similar results as executives reported in the survey.

Primary goals of digital transformation

COVID-19 drastically altered the way we work and had a huge impact on livelihoods, businesses, and the economy. Companies were forced to adapt and accelerate digital transformation, which provided a lifeline for them to thrive during unprecedented challenges.

As the world emerges from the pandemic, leaders must take on two primary objectives:

  1. Recover from the economic effects of COVID-19
  2. Bolster the resilience of their organizations against future shocks

The road to recovery can be made easier by automating time-consuming and inefficient tasks, processes, and procedures, which are fundamental aspects of digital transformation. Companies looking to make the most of available resources, mitigate difficult economic conditions, and lessen the impact of talent shortages can justify digital transformation as part of their business strategy.

How does digital transformation impact business strategy?

When digital transformation becomes an integral part of your business strategy, a shift in how you operate occurs. Successfully incorporating this strategy into your business requires accountability across all departments and employees. This will help ensure that everyone works together towards the same transformation goals.

While planning a strategy for your digital transformation journey, you should consider the following elements as part of a solid foundation for your roadmap:

IT Revamp/Cloud: Modernizing existing IT by moving to the cloud to enable agility and scalability
Data and Analytics: Leveraging data and analytics to drive decisions and improve results
Digitizing Operations: Optimizing existing business processes by digitizing them
Digital Marketing: Deploying digital tools for marketing to increase market share and brand value
Digital Experience: Delivering improved customer experiences through technology
Engaging Customers: Engaging your customers throughout the transformation process to ensure that their needs are being met
Security: Ensuring data privacy, security, and industry compliance

In a 2020 survey conducted by the Ponemon Institute, 82% of IT security and C-level executives said they experienced at least one data breach directly resulting from a digital transformation they had undergone. As such, carriers must consider cybersecurity as a top priority while planning and undertaking their transformation.

Economic transformation at our doorstep

Digital transformation is a complex, time-consuming journey that involves incremental changes that can be disruptive. In the last 60 years, performance and productivity have been vastly improved by IT in virtually all economic activities and sectors. Currently, digital technologies continue to advance IT’s contribution even further by providing unprecedented insight into economic activities that have largely been untouched by IT.

Technological innovation has enabled businesses to become more competitive while simultaneously providing consumers with more choices and convenience. This has led to an ever-increasing demand for digital solutions that is driving the growth of the global economy. The trucking industry is no exception.

As technological innovation and the digitalization of products and services continue to bolster economic activities, a fundamental shift is occurring that’s redefining how we live, work, shop, and relate to one another. Fleets will need to adapt to the new digital economy to stay competitive in the 21st century.

Download Guide – Transportation and Technology

About the author

Joe Russo, Vice President IT & security

Joe Russo, VP IT & Security at ISAAC, is an IT Executive with over 20 years’ experience leading IT teams in multinational environments and various sectors: banking, pharma, transportation and technology services. He has held senior leadership roles in Switzerland at Morgan Stanley and the Bank for International Settlements, and then in Montreal at McKesson Canada, Syntax and CN Rail. His experience in aligning IT strategy with corporate strategy makes him a strong transformational leader who excels at overcoming technical, cross-cultural and organizational challenges to solve business challenges. Joe holds a MSc in Information Technology & Management from Sheffield University, completed the Mini-MBA program at McGill University and holds the CISSP certification.

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