Digital transformation has been one of the trendiest themes at nearly every business conference and event in recent years. It’s a topic that keeps CEOs and company owners up at night, but it’s not often well defined or understood.
Every aspect of a company may be impacted by digital transformation. Machine learning may automate manual tasks such as invoice tracking in the finance department. There is little doubt that cloud computing will have an influence on how data are stored and retrieved. However, for other businesses, digital transformation is more of a concept to be studied and analysed than an actual aspect of business strategy. One reason is that businesses are anxious that any interruption may impact customer service, sales, and support, among other areas.
According to recent estimates, global spending on the technology and services that allow digital transformation is expected to exceed $2.3 trillion in 2023, with digital investment increasing steadily from 2019 to 2023. This demonstrates that the digital transformation process is increasingly being considered a long-term investment, with projects expected to account for more than half of global technology expenditure by 2023, indicating the global commitment to enterprise-wide digital transformation.
So, what makes digital transformation so critical and timely? Simply put, if your organisation does not modernise, it will fall behind, and the prospect of disruption will become very real. If your company wasn’t “born in the cloud” (usually in the last 10 years), chances are you’re still utilising old software and out-of-date IT infrastructure. While this is not an issue in and of itself, your rivals are now lean, efficient, make far better use of money, and delight their consumers by engaging them across various channels.
In today’s blog post, we explore the 7 benefits of digital transformation to a business and its workforce.
Before we begin, let’s recap what digital transformation is all about.
Check out Iron Mountain’s Video on What is Digital Transformation
1) Transforms Customer Experience
The world’s fascination with cutting-edge technology, social media, and applications comes from a yearning for a simpler existence. People are looking for useful answers to their difficulties. More crucially, they need it now.
The customer experience is at the core of digital. As a result, the major goal of digital transformation is to improve the customer experience via the use of cutting-edge technology.
Many businesses understand this, with 92% of leaders adopting mature digital transformation plans aimed explicitly at improving the user experience.
According to McKinsey, the success factors in customer experience in the transformation process are:
- Design and digitise customer journeys
- Increase speed and agility in insights
- Achieve customer adoption of digital customer journeys
- Develop agility in delivering journey transformations
2) Drives Data-based Insights
One of the most significant benefits of digital transformation is the capacity to measure metrics and analyse data collected during digital marketing initiatives. More importantly, utilising these insights allows enterprises to optimise their plans and procedures for even greater results.
Costs and income are the two most important factors in a company. It is possible to make significant improvements to both by incorporating data-driven insights into organisational culture. Using data-driven insights to better understand consumers and incorporate them into company strategy allows for hyper-personalisation, relevance, real-time feedback, and agility. This entails organisations using both structured (personal customer information) and unstructured data (social media analytics), bringing data from many parts of the business together to assist drive the transformation process.
The value of data in decision-making cannot be overstated. The road to a greater ROI will become much easier with the correct leadership encouraging this mentality throughout an organisation.
3) Encourages Collaboration Across Departments
Many individuals are afraid of change. The concept of a complete organisation undergoing a big digital transformation can be intimidating for personnel ranging from executives to entry-level workers. All processes and tactics must be addressed, right down to the fundamental structure and business culture.
However, there is a chance for labour unification in this situation. Strong communication is required to increase the odds of a successful changeover. Employees may overcome age and socioeconomic divisions by encouraging them to converse and learn together. Solid leadership at this moment will boost the workforce’s digital intelligence.
4) Increases Agility & Innovation
When it comes to digital transformation projects, 68% of companies regard agility as one of the top three factors to consider. The digital landscape’s fast expansion and constant change make it impossible for businesses to rest on their laurels.
Even those at the top must be willing to adapt and innovate. New competitors, new tools, and new trends will constantly emerge. As a result, the consumer would expect more, quicker and better than before. It is critical to remain prepared.
5) Updates Skillsets & Knowledge
As new technology advances, the demand for these specialised talents will rise. To highlight a few emerging abilities, the future of digital business appears to be significantly reliant on the following skill sets:
- Artificial intelligence
- Augmented Reality
- Cloud Computing
- Machine Learning
- Data Exploration/Analytics
- Growth Hacking
6) Fosters A Digital Culture
A robust digital workplace is crucial to this adaptive and flexible character. This will help the workforce to be productive and involved in the shift without feeling overwhelmed or disconnected from it. Simply having the technology in place is insufficient. If a company wants to prosper in the future, it must create and implement a company culture that accepts change.
Given that 60% of professionals do not feel prepared for change, a business culture that immerses the staff in a digital learning environment is a big benefit, allowing them to upskill for years to come while also working their way up to become digital-savvy employees.
7) Consolidates Process and Operations
Putting money aside, the biggest universal advantage that technology has provided businesses is the ease with which they can engage with others. Companies that go digital may bring together not only their staff but also their complete architecture. This includes interfaces for social networking, analytics, and project management. This consolidation of the organisation’s procedures and activities helps the company to interact with and meet the demands of its target audience.
Conclusion
Finally, the future of digital transformation is no longer just a speck on the horizon. The urgent necessity to adopt it in the next years cannot be disregarded – especially if the organisation is interested in success or revenues. The digital era is not new, but it is unique. Many businesses have had the freedom to remain on the outside throughout the last decade. But time is running out.
Find out how you can get started on your digital transformation road map with our introductory course – Digital Transformation Foundations.
For enquiries, kindly contact us at 6720 3333 or training.aventis@gmail.com
Source:
Five reasons why digital transformation is essential for business growth
WHAT ARE THE BENEFITS OF DIGITAL TRANSFORMATION?
Evolve Or Die: Why Digital Transformation Is More Important Than Ever
