Digital transformation has become the cornerstone of business makeovers. It ushers companies and organizations into the new age of technology by integrating tech into all operations, departments, and other facets of the business. With this overhaul comes numerous benefits for leaders and employees alike.
Perhaps this is why so many businesses are embracing digital transformation to change the nature of their companies. In fact, by 2024, Statista predicts that worldwide spending on the market will reach $2.4 trillion.
Is it time for your business to turn to digital transformation? All signs point to yes. Take a look at these benefits to find out more.
Digital transformation will overwhelmingly make your processes more efficient. Consider what’s lagging or causing disruption. Are there certain procedures that are slowing your company or certain departments down?
By introducing new technology and systems, you can address these hiccups and make your employees — and the entire business — run more smoothly.
Some business leaders mistakenly believe that new technology will wreak havoc on their finances. In reality, it’s actually more cost-effective to digitally transform your business. Outdated equipment is more than likely costing you too much money when you consider maintenance, downtime, and other mishaps that so frequently occur with older technology.
When you overhaul your equipment and digitize your systems, you’ll be saving your workers time — which usually translates to money — and have more reliable equipment in place, which, again, will save you money in the long run.
In fact, not only will a digital overhaul save you money, but it could very likely lead to increased profits. According to the SAP Center for Business Insights and Oxford Economics, 80% of organizations that completed a digital transformation reported profitability, compared with 53% of those that have not.
The reason for that? More straightforward and efficient processes that require less time and produce better results.
4. Data and Insight Collection
Businesses today generate massive amounts of data, all thanks to technology. Thus, when you implement new systems at your organization, you’re setting your business up to collect more information that you can later use for your efforts.
You can, for instance, use it to learn more about your customers’ buying habits and preferences, such that you can gear your marketing and sales efforts accordingly. You can also learn more about your employees’ work habits and see how operations are running
Once you have the right technology and tools in place, you’ll be able to collaborate and work in a more productive way, whether you’re working on-site or remotely. By automating tasks that typically require manual manipulation and using project-management systems, you can ensure that your employees are able to work at maximum capacity without feeling overtaxed.
You can even implement productivity trackers to see the impact these improvements have on your workflow.
Armed with the right tools and data, business leaders are more capable of making sound business decisions. These decisions won’t be based on conjecture but on real information — all thanks to the technology they have at their disposal. They can also better back up, justify, and support these decisions to other leaders, boards, and consumers themselves, utilizing these data-driven insights.
Do you know how well your processes and systems are doing? Chances are that things might be slipping through the cracks, especially if you have faulty or outdated equipment in place or aren’t using digital practices extensively.
Introducing a variety of tools — ERMs, ERPs, CRMs, CMSs, and so on — will lead to greater transparency in and outside your organization. You’ll see what’s working and what’s not. Moreover, you’ll be better able to keep your employees and your consumers informed about the goings-on.
8. Collaboration and Engagement
Collaboration is a critical part of any thriving organization. With the introduction of a wide variety of digital tools, you’ll be able to impact every facet of your organization. Let’s say, for instance, you adopt cloud services to conduct various procedures. That way, you can easily share and access documents and files — and even make edits and work together in real time. What’s more, you can do so from practically any location with an internet connection.
9. Agility and Flexibility
By agility, we don’t necessarily mean you have to adopt the Agile Manifesto — even informal agility benefits your business in myriad ways. It means you can quickly pivot when need be, such as when circumstances outside of your control — like the COVID-19 pandemic — interrupt your workflow and means of operation.
You’ll be able to equip employees to work remotely and use the tools you have to make choices about how to best proceed. You can adapt your strategies accordingly, too, as well as work more quickly.
10. User Experience and Insights
There are a number of ways a digital transformation will contribute to a better customer experience overall. For example, digital solutions can help you turn around a better product, leading to greater user satisfaction. Plus, you’ll have a more nuanced understanding of how you can improve your products and services for market success, thanks to the insights you glean from the data you generate.
Assisted by technology, you’ll be better equipped to create a cohesive strategy that will focus on your users and their preferences.
As we become more reliant on technology, people expect more from the businesses that serve them. In order to rise to that challenge, your organization must be equipped with the most innovative tools. A digital transformation will help usher you into a new era and prepare you for what’s to come in a changing landscape.