Why Your Business Needs to Undergo a Digital Transformation
Despite its broad use – digital transformation is so much more than a buzzword, neither should it be an afterthought. This article will outline what digital transformation is, why it’s crucial that businesses begin their transition and the tangible benefits digital transformation brings.
What is digital transformation?
The term ‘digital transformation’ refers to the incorporation of digital technology into all departments and processes within a business. In doing so, businesses change the way they operate, and in turn, maximise the value they deliver to customers.
Digital transformation is not a tick box exercise. For businesses to continue to truly embrace a digital transformation, it requires a cultural change. Those within an organisation should consistently be looking for ways to innovate and leverage new technology to automate processes, testing new strategies and platforms.
Part of digital transformation is being prepared to fail and learning from this.
What does it mean to your business?
Digital transformation will look different to each business, and there will be various reasons for them wanting to implement such changes. Although essentially, they all come down to a need to evolve and retain a competitive edge and market share, or they’ll face falling behind their competitors.
A study by IDC found that worldwide spending on technologies that enable digital transformation will reach $2 Trillion by 2022, with firms diverting 10% of revenue to fund digital transformation strategies. This demonstrates how important strategies and platforms are to a company’s overarching vision.
Why is digital transformation important?
By increasing the digital capacity within your business, you are preparing it to become agile, responsive and flexible. Digital transformation allows businesses to quickly adapt and embrace innovative and disruptive trends.
It also allows your business to increase its capability and meet, or exceed, your customers’ expectations and respond to changing market conditions or consumer trends.
Departments and processes become interconnected and interdependent, forcing a business to behave as one, harmonious being.
What are the business benefits of digital transformation?
You must first ask yourself, what will this technology allow us to deliver, and how can we adapt our processes to enable this to happen?
Improve customer experience
Our daily lives revolve around technology, using various devices and applications. In order to succeed, businesses must meet consumers where they are. This makes you more convenient and accessible.
Digital transformation is seeing businesses improve every experience and interaction a user has at various touchpoints. New technology is enabling this to happen.
This includes digitising customer journeys, using big data to collect consumer insights and act accordingly by adopting automated processes and workflows that improve communication.
Data driven insights
A leading benefit of creating a fully digital business, is that you can collect large volumes of data and implement the technology that can provide reports that can be easily analysed.
This allows businesses to make data driven decisions, leading to positive changes in company processes and strategies. These data insights pulled from various departments mean that businesses can deliver personalised experiences to their audience, create products or services to meet consumer demand, provide real-time feedback to departments and become truly agile.
Heightened employee collaboration
Digital transformation can unite departments across the workforce. As tools, platforms and processes gather insights the departments align, and company culture strengthens.
New technology doesn’t require employees to be physically close to achieve a strong culture. Collaborative workspaces and communication software enable offices in different locations to unite. From conference calls with flawless quality, to screen sharing and working on a document together in real time – anything can be achieved.
Outside organisations and third-parties, such as marketing agencies or business growth consultants, can be incorporated into the business in ways that allows for communication and collaboration without compromising sensitive business data.
Improves skills and knowledge
Adopting new technology requires individuals to upskill and improve their knowledge of emerging technology and trends. These skillsets include machine learning, cloud computing, data analytics, Artificial Reality, Virtual Reality and Artificial Intelligence.
If this knowledge and expertise is found within your business, you will remain ahead of the pack, and your employees will also be able to position themselves as expert and thought-leaders, contributing to their own personal brand and prospects.
Digital transformation is essentially a business transformation, preparing your company to succeed in a business landscape that is consistently innovating and evolving. Simply put, you will not achieve effective data gathering, rapid responses, strengthened collaboration and improved customer experiences using outdated technology and processes.
Digital transformation is not a project to approach lightly. It takes time, commitment and engaged individuals. We can help you achieve all of this and more – take our survey to learn how your business can achieve a true digital transformation.