Digital transformation refers to the amalgamation of digital technology into all the aspects of an organization. Such change brings in fundamental shifts in the manner that a business functions. Organizations are employing this transformation strategy to revamp their businesses into being more efficient, seamless, and profitable.
Digital transformation is more than just migrating data to the cloud. It enables a technological framework that can transform all services and data of a business into functional insights to improve all the areas of a company.
Today we will look into what makes digital transformation necessary and how businesses can use the benefits of this game-changing strategy.
Why is Digital Transformation Important?
Digital transformation can modify the way an organization works about its systems, creating an avenue of new innovations that make redundant tasks obsolete and make space for better productivity. While using a digital transformation strategy, your business systems, workflow, processes, and culture are thoroughly scanned to find areas of improvement. Such transformation includes making changes across all levels of a business and leveraging data to make more informed decisions.
The Advantages of Digital Transformation
For many organizations, the catalyst for digital transformation usually involves expenses since shifting their data to a public, private, or hybrid Cloud can substantially lower their operational cost per year. It also frees up their existing hardware and software budgets and also lets team members focus on other important projects. Mentioned below are the benefits of adopting a digital transformation strategy:
1. Magnified data collection
Most organizations keep collecting heaps of data about their customers, but the real advantage lies in optimizing such data to be analyzed so you can drive your operations forward. Digital transformation facilitates a system to gather the appropriate data while integrating it completely to be used as business intelligence by the management.
It formulates a path for various functional units in an organization to translate raw data into valuable insights throughout different touchpoints. By this function, it creates a cumulative snapshot of your customers’ journey, production, operations, finance, and business avenues.
2. Better resource management
Digital transformation converts the business data and resources into a range of tools for the organization. Rather than distributing the software or database of a company, it pulls all of them together to a centralized location. As per reports, on average, 900 applications were employed in enterprise businesses in the year 2020. This could be exceptionally challenging to inculcate a consistent business experience.
Digital transformation today has the scope to integrate applications, software, and databases into a central repository to enhance business intelligence.
This is not a compartmentalized or functional section because it comprises every facet of an organization and can commence process innovation across all units.
3. Data-driven Consumer Insights
Data can help find better customer insights for a business; when you understand your customers and their requirements better, organizations can make a business strategy that caters to the exact demands. Using structured and unstructured data like social media insights, an organization can attain business growth.
Data can help business strategies to render more relevant, personalized, and flexible services.
4. An overall better customer experience
Customer expectations have skyrocketed in recent years concerning their brand experience. Since they are now used to getting an endless sea of options, competitive prices, and quick delivery, it is harder to keep them loyal to a brand. The customer experience (CX) is the new turf for organizations to fight for market dominance. Gartner says that over two-thirds of organizations admit competing majorly using customer experience. In 2020, they expect the projection to reach 81%.
Industry experts have found that CX has emerged as the primary driver of sustainable business growth. In fact, they believe that a single-point incline in CX score can make the annual growth worth millions of dollars.
5. Promotes digital culture and collaboration
By helping your team members with the appropriate tools, personalized to their work settings, digital transformation promotes a digital culture.
While such tools make it easy for teams and employees to collaborate, especially while working from home, they also assist in shifting the entire company leagues above the mediocre. Digital culture is going to be highly relevant and critical in the future for better collaboration. It pushes organizations to help their employees upskill via digital learning and make good use of the digital transformation.
6. Enhanced profits
Businesses that take up digital transformation strategies are shown to have improved performance and profitability. Here are some statistics to put things into perspective:
- 80% of businesses that have successfully executed digital transformation report increased profits.
- 85% of companies report they have increased their market shares.
- On average, business leaders are projecting a 23% hike in revenue growth over their competitors.
7. Enhanced agility
Digital transformation turns businesses to be more flexible as per their circumstances. Learning from the universe of software development, organizations can improve their agility using digital transformation to enhance their speed-to-market whole employing Continuous Improvement (CI) tactics. This facilitates quicker innovation and adaptability while showing the way to organizational improvement.
8. Growth in productivity
Possessing the appropriate tech tools that collaborate well can help to streamline business workflow and enhance overall employee productivity. By automating most of the redundant and mundane tasks and integrating data within the company, employees will work more efficiently.
With the right digital transformation strategy, companies can find new opportunities to innovate at reduced costs. Digital technologies like data analytics, cloud, mobile, and social media are changing the business dynamics across industries and companies that embrace these innovative technologies, rather than resisting them, have a better chance at finding success in a digital-first business environment.
About Artha Solutions:
Artha Solutions is a premier business and technology consulting firm providing insights and expertise in both business strategy and technical implementations. Artha brings forward thinking and innovation to a new level with years of technical and industry expertise and complete transparency. Artha has a proven track record working with SMB (small to medium businesses) to Fortune 500 enterprises turning their business and technology challenges into business value.