Digital transformation is the basis of modern business. It is a process wherein an organization adopts technologies across its businesses to drive fundamental changes.
The benefits of digital transformation are myriad, ranging from cost reduction to increased productivity, revenue growth, and customer satisfaction.
Other key benefits are increased efficiency, greater business agility, and unlocking customer insights and experience to drive a lasting advantage in the market.
Before delving deep, let’s see how digital transformation has changed the commercial landscape in the last few years.
The idea of digital transformation is nothing but a fancy way to describe the evolution of business in the 21st century. Today, the introduction of AI, or cloud computing, along with big data and machine learning, has significantly transformed the contours of businesses.
These technologies are not just earmarked for easing workflow, but they also promise to enable businesses to operate more efficiently and save on operational costs.
Let’s see how it benefits businesses:
1) Enhanced Data Collection:
Most businesses are collecting mountains of data from social networks, emails and instant messages, online purchase transactions, and call center records.
Digital transformation technology is transforming these data silos into unified information pools that can be analyzed to develop actionable insights for better, faster, and more intelligent business decisions.
Additionally, these data assets and analyses can provide companies with a 360-degree view of their customers, opening up possibilities for new revenue streams and enhanced customer experience.
2) Stronger Resource Management:
Digital transformation consolidates information and resources into one centralized platform to facilitate data-driven decision-making.
As a result of moving from silos to holistic customer data management, companies can strengthen asset utilization and resource allocation across marketing, sales, finance, and operations.
By integrating applications, databases, and software into a unified solution, organizations can provide users with a better experience, improve collaboration between departments and business functions, and make faster business decisions.
3) Data-Driven Customer Insights:
Data can be critical to unlocking customer insights. Digital transformation helps businesses create a prolific strategy to enhance the customer experience, better anticipate consumer needs and wants, and improve the bottom line.
Businesses can gain insights into the customer journey by using both structured data (personal customer information) and unstructured data, such as social metrics and conversations.
4) A Better Customer Experience:
Customers have high expectations for digital experiences. By embracing digital transformation technologies, organizations and businesses such as Splunk, Oracle, and Salesforce have gained better insights and opportunities to improve customer experiences.
According to a study, 40% of customers think they can get a better experience with a competitor, and 80% would take their business elsewhere if they didn’t feel their needs were met.
5) Encourages Digital Culture:
One of the biggest perks of digital transformation is the drive to eliminate inefficiencies, resolve problems, and boost productivity.
The newer tools and technologies allow you to accomplish many things at once, streamline data collection, and discover new approaches that can change how work gets done. In short, it brings a holistic change in the organization and boosts its overall performance.
6) Increased Profit:
Companies that undergo digital transformation improve efficiency and profitability. The profitability is likely to increase due to several reasons. Digital transformation reduces overhead, decreases inventory levels, and improves operational efficiencies.
Eventually, It improves customer service and enables a company to create new revenue opportunities.
7) Increased Agility:
According to market research, digital transformation has significantly influenced global supply chains and fundamentally changed the very business models of companies, which has consequently increased their agility.
Increased agility enables businesses to improve their operations and achieve a faster time to market.
8) Improved Productivity:
Last, digital transformation allows an organization to improve productivity by increasing automation, improving reporting processes, and reducing time and costs associated with compliance.
An organization can reduce complexity and realize significant cost savings by automating manual tasks and integrating digital processes into everyday tasks.
In a nutshell, digital transformation has brought about enormous economic benefits and global value, reshaping the way we live, work, and conduct business.
Today, around four billion of us are connected via smartphones and other mobile devices, either as consumers or producers. With digital transformation, businesses can reap benefits that include more effective products, more secure transactions, and new opportunities to create value for their customers.
Capital Numbers is a leading software development and digital transformation consulting service provider, offering digital transformation services to both startup companies and well-established enterprises.
Their experts can help enterprises create the next generation of digital products and capabilities. For more information, book a call today!