The importance of digital transformation was underscored by the events of 2020. Those businesses which had embraced digital transformation in the years earlier were in a position to adjust rapidly. They were able to rely on their modern security protocols, cloud architecture, affine company culture, among other business-enabling technologies, to support work from home environments, as well as the newly virtualized interactions and business transactions.
However, businesses, governmental entities, and nonprofits lagging in technology adoption struggle to adjust to the rapidly changing social and economic environment. There are many benefits to transforming a business from the traditional model to incorporating technology. From production to marketing, technology in a company is truly a game-changer.
What is Digital Transformation
This refers to the infusion of online or internet-based technologies and tools into organisational processes to help it anticipate and meet its stakeholder’s needs and wants, and technology plays a primary role. Digital transformation ensures that companies can work faster using modern ways to compete better. For instance, mobile technologies and cloud computing supported by best practices and modern software like ERP systems allow reliable, secure access to business applications from anywhere and at any time. That’s the reason why most people are taking online digital marketing course .
Furthermore, automation reduces errors and speeds up processes while shifting the attention of human workers from mundane and repeatable activities to higher-value tasks that the machine cannot do. Therefore, digitization helps create improved customer and employee experiences and a better workplace environment. Artificial intelligence and machine learning are also vital digital transformations that help analyse the data, detect irregularities like fraudulent transactions, and learn from the analysis to identify new gaps that can be exploited to increase revenue. Below are the top 10 key benefits of digital transformation for businesses.
A digitally savvy business can adjust to the change and capitalise on it. For instance, due to their reliance on cloud computing, digitally mature companies can rapidly scale their operation up or down depending on their fluctuating needs. Additionally, modern software development methods like agile and DevOps tout better collaboration between teams, allowing them to develop and roll out new functionalities and features that can satisfy the market needs as rapidly as they evolve.
Increased Productivity And Efficiency
Adopting digital technologies delivers considerable gains in both productivity and efficiency through streamlining operations and speeding up processes. For instance, robotic process automation outperforms humans on several fronts. IBM showcased some bots that completed their assigned tasks 20 times faster than humans. Furthermore, they generally didn’t make mistakes. Data analytics and Business intelligence software can gather and analyse the data at high accuracy and speed that human beings cannot match. The business then uses the analysis to make faster and better decisions.
Enhanced Customer Engagements
Digital transformation entirely shifts what you know about customers. Using Customer relationship management and marketing automation software, you better understand the customers and their needs while improving business-customer communication by collecting, storing, and analysing their data. Such an understanding shifts your relationship with them. Machine learning and AI are essential in the analysis and reporting. This means that a business can develop products tailored to each customer’s unique needs and preferences.
Better Management Of Resources
During the digital transformation, companies replace the legacy systems that serve individual business units with modern and more robust IT systems engineered to consolidate various processes and enable a seamless flow of data across each department. This end-to-end approach to digitization helps CIOs and other business executives to eliminate redundant and duplicate technologies and their associated costs.
Additionally, on-demand computing resources such as software-, platform-, data storage-, or infrastructure-as-a-service helps companies to optimise their expenses on technology by providing enough computing capacity when needed, unlike paying for excess capacity only for handling rare peaks in use.
Through digitization, new opportunities are created. Companies across all sectors can now develop services and products that they could not previously make. Today, a customer can be matched with a contractor online with the help of various tools. For instance, you can get personalised exercise instruction on-demand from a virtual gym instructor. Retailers are now offering curated, customised fashions for rent. In a nutshell, digital transformation is helping companies to create new niches and better innovate.
Businesses embracing digital technologies and building a digital culture that adapts to change are better positioned and quickly able to adapt to the shifting market forces, including the socio-economic upheavals like the ones caused by the pandemic. Businesses can better weather the usual business troubles and the larger, once-in-a-lifetime disruptions. The pervasive application of digital technologies, especially cloud computing, supports business resilience by offering elasticity and redundancies.
Because the digitally transformed companies have superior customer engagement initiatives, they can better anticipate the evolving requirements from their customers and the changing market dynamics. In an economic hardship, they can adequately respond and adjust because they are integrated.
According to a report by Oxford Economics and SAP Centre For Business Insight, 80% of the executives at the companies having a mature digital transformation said their digitization efforts led to increased profitability, with 85% saying their market share increased. Transformation offers a digital backbone for the delivery of new business functionalities which allow a company to grow its operations and revenues.
Faster Marketing Time
Shortened product life cycles are probably one of the most significant benefits of digital transformation. This is particularly essential in businesses having high development costs. For instance, consider it could take $500,000 for tapping out a new semi-conductor; this would be a high bar for a product to pass before entering the production stage. This also delays the development of other products using such components. If this can be done virtually, time to market is cut into a fraction of what it is today.
The agility provided by digital transformation helps you adapt to the business and production environment variations. This ensures you can deliver value in the long run and remain relevant for/in your industry. Therefore, your marketing efforts will be much easier and lead to conversions.
If you haven’t fully embraced digital transformation, this is the time to. As you can see from the above top 10 key benefits of digital transformation for businesses, it is essential to the success of your business. Augment the digital transformation by taking an online digital marketing course to achieve even more benefits. Remember, 82% of consumers perform research online, with a further 79% shopping, underscoring the importance of digital transformation.