Question no 4:

Digital transformation
Digital transformation is a process of change adopted by the companies to implement and apply
technologies in their day to day activities and functions. Digital transformation started with the
digitization. The process of digitization was based on the conversion of traditional datasets into
digital data and documents. After some time, companies started integrating digital technologies
in to business process. However, digital transformation took its current shape when companies
started using the technologies to change customers experience. However, companies soon
formed their systems with the integration of advanced technologies and solutions. Companies
changed their organizational culture to make it compliable to technologies. Digital
transformation led to fundamental shift in the ways customers experience is delivered and
business operations. Digital transformation has become crucial for businesses. However,
companies have different reasons for investing in digital transformation.

Drivers of digital transformation

Business need to gain competitive advantage
Industries have become volatile. Completion has increased to a critical level in almost every
industry but especially in industries that sell consumer products. It has become increasingly
apparent that business need to compete and grow and sustain their profits which is only possible
through high level of resilience, competitiveness and responsiveness. Companies adopted
digitalization from raw material to supply chain tiers so that they can fulfil consumers demand
with highest speed. The need for sustaining competitive advantage has developed an urgency
among businesses to digitalize their process. Digital transformation help companies introduce
new and better products among audience and provide more channels for revenue generation.
Digital transformation has become a significant contributor of organizational productivity and it
also improve decision making. Digital transformation is adopted by companies to improve their
supply chain process and have better product navigations. companies have adopted technologies
like cloud computing with the aim to have on-demand centralize access to systems and have
better business connectivity.

Customers Demand
The primary driver of digital transformation is the increased need for the understanding of
customers’ demands. Attracting and retaining customers impacts on the growth and profitability
of companies. Digital technologies are adopted by companies so that they can understand the
needs of their customers. It is also adopted by companies to provide a more personalized
experience to audience. Digital transformation has also become crucial for businesses to develop
a positive reputation among audience. Companies get customers feedback and comments that
help them design early stages of marketing. The increasing use of online systems has also
increased the cyber security threat. Companies have adopted technologies like blockchain to
reduce the cyber security threat.

Data Management
Companies are dealing with various challenges such as retaining audience in highly competitive
markets, ensuring compliance to quality demanded by the audience. Poor planning, misaligned
goals and unclear strategies due to lack of information. The adoption of social media and web 2.0
also made it crucial for companies to adopt technologies that can help them sort out the
information and find the data that can help them improve business process. Data is key of
organizational success. However, it is also important for accurate decision making to collect,
clear and access useful data. There are various technologies such as ERP systems and so on that
help companies in managing the data. AI technologies are also helping companies in managing
the data and understanding customers’ needs.

Question No 5
Difference Between Database Architecture And SAP S/4HANA
The database systems are designed with the aim to help companies to perform transactions and to
be able to analyze the data. There are different types of database. Sap s/4hana is one of the
database system that help companies manage all of their functions in real time. Database
architecture can be based on centralized, decentralized or hierarchical systems. It can be based on
single tier or multiple-tier. The n-tier architecture in the database model divides the whole
system in related but independent modules which are known n modules. On the other hand, the
SAP S/4HANA is an ERP system with in-memory database. In the database architecture, the
users need to add data to the system manually. However, SAP S/4HANA is a centralized process
which modifies the existing data on its own and create new datasets. Database architecture is
dependent on human performance. Therefore, the chances of error in the datasets are high. It also
takes too much time. On the other hand, SAP S/4HANA takes less time because it is completely
a machine based system. SAP S/4HANA is integrated with various technologies which helps in
dealing with complex issues. SAP S/4HANA can be used with cloud or hybrid systems. With
database architecture, the first is database tier in which data is add with the query processing
language it also defines the constraints of fata. The second tier is application tier which means
user has to download the application and program that can access the data. In this system, end
user cannot view any database which is not linked to the application he is using. End-users do
not get the information of any exiting database which is not in their layer. Database Architecture
has high level of complexity and there is also less flexibility. However, SAP S/4HANA is more
flexible. The issue with the SAP S/4HANA is that only runs on HANA. However, others system
can be used on any database. SAP S/4HANA displays data in simple and user friendly manner.
The whole data on SAP S/4HANA is available. There is no need for reconciliation. Financial
department using SAP S/4HANA can focus on more strategic tasks rather than simply
completing the administrative functions. SAP S/4HANA develops a single source of
information. SAP S/4HANA does not require many steps which are part of traditional systems.
the data is set in tables and the data model also provide the understanding of the relations of the
tables.