What Are The Benefits Of Digital Transformation?
This cannot be denied that "digital transformation" has been the major reason for the fundamental changes in the result of businesses. Also, the way businesses are operating, and the integration of digital technology in digital transformation have a massive role in it. In the modern world, organizations are gaining benefits from digital transformation. There are numerous businesses that are replicating big names just after witnessing the benefits gained from digital transformation in their organization.
Modernizing the legacy process, effective and result-driven workflows, safe and sound security, and maximum revenue is to name a few under the line of benefits of digital transformation. The following are the top benefits for all business types, must check them out!
Top Result-Driven Benefits Of Digital Transformation
Digital transformation has allegedly changed the perspective of organizations operating systems. The process of the operating systems undergoes 4 stages such as; systems, processes, workflow, and culture all are its part. However, by taking the advantage of workflow automation, AI, and machine learning companies are gaining potential leads and increasing customer retention. See what the other 8 benefits are:
Strengthen Data Collection
There is no use in collecting tons of customer data when the data is unreal or non beneficial. What's the catch? The data provides the real benefit of optimizing, which can later be used for business prosperity. Here comes the digital transformation handy and it accentuates the system to gather the right data and incorporate it fully into the business which can raise the business bars to a higher level.
For the organization's betterment, it is important to know how the customers' data is collected, stored, used, and shared across the platforms. To maintain customer relationship management (CRM), you are advised to ensure customers that their data is safe and are under high security with automation.
Enhanced Customer Experience (CX)
Customers when interacting with automated and digital resources automatically expect a lot from them. However, for any business, the best it could do is to not let its customer down. The digital transformation unlocks efficiencies that give seamless, real-time, and intuitive experience to the customers.
Digital transformation allows you to give your customers complete agency over their data privacy, which certainly leads to customer satisfaction. According to the Accenture reports, "For the substantial business growth, customer experience CX has emerged as its key", also, it says "increase in CX even by single point can lead to millions' growth annually"
Hence digital transformation has been following the high-end technology advancements provided by automation, AI, and machine learning in this modern world. Therefore, in the organization, having the appropriate high technology can actually boost productivity. Wondering how? It actually takes up the responsibility of the manual tasks, and lets employees focus on more important tasks. Also, it can integrate data throughout the company and let the employee feel less burdened.
Forceful Resource Management
According to the sources, the average number of applications used in businesses in 2020 is about 900 — all kudos to digital transformation. Because it makes information and resources solid for the businesses, and also, protected. For business intelligence, digital transformation can integrate applications, databases, and software.
Whether it is a finance department, marketing, or sales, each and every department has a sensitive data that requires a safety which can be driven via digital transformation.
For an organization, to maintain its credibility in the market it is highly advisable to equip and optimize data with easy to use tools and help the team to make their work done properly.
Data Driven Customer Insights
For best customer understanding and customer needs — you being the business owner must create a business strategy that is customer centric and must fulfill customer needs. Also, for better customer insights the ideal way to do that is to have a safe and secure data set.
How digital transformation helps in gaining the best customer insights? With the help of structure and unstructured data. Personal customer information falls under structural data, whereas, social media metrics is an unstructured data that help the business to drive more insights.
In addition, the collection of data enables the strategies for the business to provide relevant and personalized content.
High and Maximum Profits
Companies that go through the digital transformation process are more efficient and profitable; it also helps companies get noticed more.
However, according to the SAP Center for Business Insights and Oxford Economics, the companies that follow the digital transformation process gain more than the usual companies. The results are as under:
More than 75% of the companies are reported to have increased profits with digital transformation.
More than 80% of businesses say that they have increased their market share
With the digital transformation companies are earning 23% better revenue in comparison of their competitors
Uplift Digital Culture
Without a doubt, the digital transformation is encouraging a digital culture by tailoring the environment with the right tools. Also, these tools help to connect in a seamless way, in addition, it moves the whole organization to a new level of digitalization.
Certainly, it helps the online businesses to take advantage of the benefits of digital transformation and keeps pushing the businesses to grow in a better way. One such example is upliftment in dropshipping businesses in different industries like clothing, pets, jewelry etc. lately which has gained tremendous interest and which is possible with the help of free tools like the Woocommerce and Wordpress.
Last but not the least — cost savings. Which business would not want to save the cost? ALL OF THEM! Switching to digital transformation will not only save business costs but also time. Once you have switched to it, the integration of it would make work and business more efficient.
What Are the 4 Main Areas of Digital Transformation?
Many the thoughtful researchers and many advocate digital transformation in 4 areas. However, it is further categorized in the light of Microsoft and Association Success. Let's have a look at both of them:
According To Microsoft:
According to Microsoft CEO Satya Nadella, CEOs should focus on these areas in digital transformation:
- Empowering employees
- Engaging customers
- Optimize operations
- Services and products
According To Association Success:
According to an article on AssociationSuccess.org, businesses should have 4 specific focal points when designing a digital transformation plan:
- A strategic focus
- A customer focus
- A culture focus
- A data focus
Data protection and safety is no longer an IT task, it shall be looked after by digital technology & MDM solutions too. Also, the companies are redefining their shape in the light of digital transformation. However, the businesses are seen gaining in many areas such as; data collection, improved customer experience, high cost savings, maximum revenue, and more.