Digital transformation is radically changing the way companies function and the value they can provide to clients. The adoption of digital technologies for internal and external business activities is fundamental regardless for the progress of big enterprises or small to medium businesses.
With digital transformation in place, businesses will need to constantly challenge and experiment with existing systems to remain competitive in their respective fields. Given the right implementation, it helps to simplify processes, enabling businesses to stay relevant with the emerging consumer needs.
If you’re still considering whether digital transformation will help you with your business, keep reading this article. It’ll help you to understand the advantages of digital transformation and why exactly you need it for your business.
Why Digital Transformation?
- Easier Data Collection
Data collection is significant for every business. By analysing the data collected, businesses can make better, informed decisions to drive their business forward. The problem arises when there are huge amounts of data to be collected.
Traditional methods of data collection may take forever for one to gather all the data needed. Some data collected may not be even relevant to the business. With digital adoption, people could easily collect huge chunks of data and perform necessary screening at ease to omit irrelevant data. All they’ll need is a system integrated and they’ll receive quality data for their business insights in no time.
- Effective Resource Management
Digital transformation can solidify the information and resources of a company into a set of business tools. It can put all of its resources into one location instead of scattered software and databases. Resources are streamlined and become more accessible across departments. Overall, it helps to improve the efficiency of the company.
- Improves Productivity
Humans can’t be working 24/7. Teams may get overloaded with work and tasks may just pile up. Having the proper IT tools can help your company enhance productivity and optimise the workflow. Always automate tedious procedures if you can. Your team can work more efficiently with automation by focusing on tasks that really matter while staying updated with data streamlined across the firm.
- Greater Accuracy for Customer Insights
A common challenge in customer insights is the accuracy of data on hand. Sometimes, data gets left out without your knowledge. Often, it can feel like you are playing a hide-and-seek game with the pieces of data. They could be hiding somewhere in your sales representative hand, customer service, marketing or they simply just didn’t make it pass your data collection system.
As a result, assumptions on data tend to take place and customer insights may become inaccurate. Digital transformation helps to solve this by integrating customer data across multiple platforms, turning them into meaningful insights for businesses. As a whole, data can enable a more holistic strategy through relevant, tailored, and adaptable information.
- Increases Customer Satisfaction
Consumers are getting digitally conscious and businesses should acknowledge that. In many ways, digital transformation can help to improve your customer experience. Just to name a few, it could be as simple as having an online store, setting up a social media account to interact with your customers and implementing chatbots to respond to your customers while you are away.
Remember, it’s always about connection. Be there for your customers where they need you. The sweet spot for digital transformation is that you can still show that you care without being physically there or online chatting to them. All it takes is the right system and processes to improve the overall customer experience.
- Higher Profit
According to a research by SAP Center for Business Insights and Oxford Economics, 80% of companies that went through digital transformation have seen an increase in earnings. It was also revealed 85% of respondents see an increase in their market share. On average, leaders anticipate a 23% increase in revenue over their competitors.
- Improves Agility
Consumer trends are moving at a relatively fast pace. With the help of digital transformation, companies can be more agile and adaptable to the demands of the consumers. Digital transformation improves speed-to-market, while enabling rapid innovation. When a company is able to take steady steps while rapidly keeping up-to-date, changing, or adapting their processes, that would be a sign that the company is on the path towards improvement.
Conclusion
While digitising a business is essential, it should be implemented progressively. It should be done only when you and the team are ready to accept systems and procedures out of the existing company culture. Changes can be scary, but if the change can help you reap the benefits long-term wise, take the time to talk to your team. Our last advice to you: Be patient when taking concrete steps towards digital transformation.