Digital transformation importance in Business
Digital transformation in businesses have brought a number of opportunities for advance changes across all industries.
From retail to life sciences, from pharmaceuticals to banking, we see a complete change of products, services, and experiences that are delivered to the market.
In the coming time, businesses should use digital transformation channels to engage with their key stakeholders. It is essential to maintain relevance and drive the conversion.
The World Economic Forum in their latest Digital Transformation report said that “to succeed in the digital era, (companies) will need to become digital enterprises, rethinking every aspect of their businesses.
What is Digital Transformation?
Digital transformation is the division of digital technology into all areas of a business. It results in renovation to the way a business operates. Organisations across industries enjoy the advantages of digital transformation: It makes businesses capable of modernising legacy processes, speed up capable workflows, strengthen security, and increase profit.
94% of companies are doing business in the cloud (webtribunal.net)
As companies move data to the cloud, much of what is being done is to copy known services in a digital form. But digitalization is much more than that. A digital transformation is transformative across the organisation — creating a technology framework to channel these services and data into applicable insights that can increase just about every facet of an organisation.
Benefits of digital transformation
1. Increases Customer Satisfaction
Customers on the one hand want personalised services that meet their individual needs. On the other hand, they want an automatic system where they don’t want have to deal with humans to do activities like accessing, updating, or deactivating and reactivating software. The advantages of digitalization in business is that you will be able to execute robust digital tools and strategies, like per-location or per-industry lisence modification and automated processes. These digitised processes lead to increased customer satisfaction.
2. Drives Data-Based Insights
The most essential benefits of digitalization is that your business will be able to do data analysis that you can turn into actionable, revenue-generating insights. Earlier, your data was distributed across many disconnected platforms, or even worse, you might not have used it at all. Digital transformation will allow robust data collection, data storage, and the creation of tools to do data analysis into insights that promote informed corporate decision-making.
3. A better customer experience
Digitalization can not only unlock efficiencies for your teams, but also gives seamless, intuitive experiences for the customers. This spreads from email communications to user portals, digital products, and even the rhythm by which you reach out to new prospects.
Customers have the highest expectations for digital experiences. Consumers are used to having limitless choices, cheap prices, and fast delivery. Customer experience (CX) is the latest battleground for brands. One way to modify your brand with customers is to reveal that you value their privacy. Give the customer power of how their data is used, and empower them with the freedom to make decisions around their data.
4. Increased profits
Companies that do digitalization improve profitability.
- 80% of companies/industries that have completed digitalization report increased profits.
- 85% say they have increased their market share.
- On average, leaders expect 23% higher revenue growth than competitors.
5. Encourages digital culture
Digital transformation increases a digital culture by providing team members with the right tools, tailored to their environment.
While these tools provide a more seamless way to collaborate, they also help to move the entire organisation digitally. This digital culture shift is important for businesses to stay sustainable. It enhances the upskilling and digital learning of team members to take use of the benefits of digital transformation.
To improve productivity, having the right tech tools that work together are essential for workflow. By integrating data throughout the organisation, it empowers team members to work more effectively.
Digital transformation makes organisations agile. Abstracting from the world of software development, businesses can increase their agility with digitalization to make better speed-to-market and carry Continuous Improvement (CI) strategies. This allows for speed- up innovation and adaptation while giving a pathway to improvement.
8. Stronger resource management
Digital transformation merges information and resources in a suite of tools for business. It merges company resources rather than dispersed software and databases, and reduces vendor overlap. Digitalization can combine applications, databases, and software into a central repository for business intelligence.
Digital transformation is not a functional unit. It covers every area of a business and can process innovation and efficiency across units. From sales and marketing to finance and the C Suite, each department leverages sensitive data. It’s essential to optimise and secure data everywhere it flows, while giving teams with easy-to-use tools to get their jobs done.
Ready to start your path to digital transformation?
The benefits of digitalization go far beyond the list above, as the journey to digital transformation looks different for every business.