Benefits of Digital Transformation – Guide
According to the latest Harvard Business Review study, nearly $1.3 trillion was invested in digital transformation in 2018. Even so, much of that spend is wasted on initiatives by companies that fail because they aren’t truly prepared for change. . Digital transformation is not just a matter of capital investment, but of developing strategies, implementing them and mastering the associated challenges and opportunities. Experiences and skills related to digital transformation are necessary for the strategic planning of almost every company today. The two pillars of digital transformation in the industry are innovation and disruption. Companies need to be aware of the changing landscape of their industry and have the right talent to implement new business models as well as develop and retain existing talent. Disruptive forces abound in today’s business environment. For these reasons, sustaining the effects of such a transformation often requires a major restoration of mindset and behavior.
Benefits of Digital Transformation
Improved data collection
Most companies are collecting mountains of customer data, but the real benefit is optimizing that data for analytics that can drive the business forward. Digital transformation creates a system to collect the right data and fully embed it for business intelligence at a higher level. It creates a way that different functional units within an organization can translate raw data into insights across various touchpoints. In doing so, it produces a single view of the customer journey, operations, production, finances and business opportunities. It is vital to assess how customer data is being collected, stored, analyzed and shared as part of this process. When rethinking your technology stack, you’ll want to ensure that sensitive data in and out of customer relationship management (CRM) software and other platforms is protected with a layer of SaaS data encryption. When evaluating the customer journey as part of your digital transformation, consider How to give your customers greater autonomy over their own data, using data privacy as a business differentiator. Consumers are increasingly aware and concerned about how their data is collected and used. Show them that you respect their data by implementing strong privacy practices and giving them the opportunity to change their mind at any time.
Stronger resource management
Digital transformation consolidates information and resources into a set of business tools. Instead of dispersed software and databases, it consolidates company resources and reduces vendor overlap. The average number of applications used in enterprise business in 2020 is 900. Digital transformation can integrate applications, databases and software into a central repository for business intelligence. Digital transformation is not a department or functional unit. It covers all areas of a business and can lead to process innovation and efficiency across all units. From sales and marketing to finance and C Suite, every department leverages sensitive data. It’s important to optimize and protect data everywhere it flows, while equipping teams with easy-to-use tools to get their jobs done.
Data-driven customer insights
Data can be the key to unlocking customer insights. By better understanding your customer and their needs, you can create an even more customer-centric business strategy. Using structured data (personal customer information) and unstructured data such as social media metrics, these insights can help drive business growth. Data enables strategies to deliver more relevant, personalized, and responsive content.
A better customer experience
Consider how your digital transformation can not only unlock efficiencies for your teams, but also provide more seamless and intuitive experiences for your customers. This ranges from email communications to user portals, digital products, and even the cadence at which you reach new potential customers. Customers have high expectations for digital experiences. Consumers are used to having endless options, low prices and fast delivery. Customer experience (CX) is the new battleground for brands. Gartner reports that more than two-thirds of companies say they are competing primarily on customer experience. Accenture reports that CX “has emerged as the key driver of sustainable business growth.” They suggest that even a single point increase in CX scores can result in millions of dollars in annual growth. One way to differentiate your brand with customers is to demonstrate that you value their privacy. Give the customer control over how their data is collected and used and empower them to make decisions about their data autonomously.
Encourages digital culture (with better collaboration)
By providing team members with the right tools, adapted to their environment, digital transformation encourages a digital culture. While these tools provide a simpler way to collaborate, they also help drive the entire organization digitally. This shift in digital culture is crucial for companies to remain sustainable. It forces team members’ skills and digital learning to reap the benefits of digital transformation.
Increase in profits
Companies undergoing digital transformation improve efficiency and profitability. Consider these results reported by the SAP Center for Business Insights and Oxford Economics:
Greater agility
Digital transformation makes organizations more agile. Borrowing from the world of software development, companies can increase their agility with digital transformation to improve speed to market and adopt Continuous Improvement (CI) strategies. This allows for faster innovation and adaptation, while providing a path to improvement.
improved productivity
Having the right technology tools working together can streamline workflow and improve productivity. By automating many manual tasks and integrating data across the organization, it empowers team members to work more efficiently.
Final note
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