The digital transformation has been one of the most revolutionary changes in our lives and it is happening at an unprecedented rate.
Digital technologies have shifted power from businesses to consumers. It has fundamentally transformed our buying habits including what we buy, how we buy, and whom we buy from. It has also influenced how we work.
Many organizations throughout the world are already investing in digital transformation. Due to this, the total investment on this may reach 1.78 trillion U.S. dollars by 2022.
What is digital transformation?
Digital Transformation means the implementation of digital technology in the business processes and bringing a shift from non-digital to digital. This comprises the transfer of data to the cloud, using technological devices, and tools for communication purposes along with automating repetitive tasks.
The Drive Behind the digital transformation
The unprecedented growth of digital transformation is because of the Covid-19 pandemic. It encouraged organizations to adopt digital transformation in 2020.
Another factor causing a rise in the adoption of digital transformation is the need to sustain and thrive in the competitive environment. It helps them to perform resiliently. align with customer behavior, and deliver a better value to them.
However, before a company is looking forward to digital transformation, it has to acknowledge the changes because they are the only constant. And, this can be done by describing to your employees clearly about the change.
Let’s move on how the main areas where digital transformation is helping organizations to make it future proof:-
1) Boosting competitiveness
One of the advantages of digital transformation is winning over competitors. In every industry, competition exists that puts pressure on the company to perform better. Thus, this becomes a primary driver behind digital transformation.
Even businesses believe that their tech-savvy competitors will gain an edge over them in case they don’t move with the changes.
In order to overcome competition and continue growing, digital transformation must take place within an organization.
2) Improved Targeting, Customer Satisfaction, and Employee Experience
While implementing digital transformation in your organization, make sure to keep it customer-driven. For this, you will have to arrange data from multiple sources and analyze it to figure out valuable insights.
And thereafter, develop the conclusion from the insights to offer tailored products and services to meet customer needs. The company following this approach can expect better customer satisfaction and retention rates.
Also, taking care of employee needs is important too. You have to provide them accessibility to the latest tech resources so they can enjoy work and accomplish tasks easily.
3) Increase in Revenue Generation
A digital transformation strategy when executed comprehensively, then businesses can gain a broad understanding of customers’ buying habits. It will further improve business strategies to supply innovative products with more sources of revenue generation. For example, entering into a new market segment.
4) Efficient Operational Costs
By taking digital transformation steps, organizations can reduce their transaction costs because of optimized business performance and promoting efficiency. It also leads to efficient cost management, which pushes an organization to have effective control over production and sales.
5) Informed Decision Making
Having accessibility to the data and insights, organizations can make effective decisions with an improvement in flexibility. This allows the companies to adapt conveniently to the changing marketing environment.
How digital transformation will affect small and medium businesses?
Digital transformation sounds easy to the ears but it’s more complex than you can wonder. Managers have to oversee four areas in an organization- financial, organizational, operational, and cultural. In these, digital information will reign to a great extent.
- Financial: While digital transformation reduces operation costs, it has to be ready for other investments in hiring, cloud migration, cloud storage, etc.
- Organizational: Hiring a third-party digital transformation consultant will be a good idea instead of having an in-house team, as it will ensure the efficient running of business processes. It is possible with the presence of strong leadership to team up with the HR function.
- Operational: Some roles and responsibilities may have to change or merge in order to cultivate growth with digital transformation
- Cultural: Bringing customer-oriented working, products, workflows, and processes will be the main idea
Build A Sustainable Business With Digital Transformation
Seeing the changes going on, your company can stay competitive in a rapidly changing industry. The key is to make sure that you have the right strategy in place to take advantage of all the benefits of a digital-driven company. This encompasses taking advantage of new opportunities for innovation, can succeed when exploring this digital transformation.