During the COVID19 pandemic, only digitally mature organizations that had reaped the benefits of digital transformation were able to operate and make quick adjustments to allow their employees to work from home without interruption. The benefits of technology in various sectors such as finance, manufacturing, healthcare, and education have had a positive impact on their customer’s experience.
The benefits of Digital transformation are improved customer experience, increased productivity, improved business models, improved agility and innovation, better collaboration, faster time to market, improved analytics, and increased transparency.
While most organizations who were hesitant to implement digital technology were unable to operate, they were compelled to make quick decisions in order to accelerate their digital transformation route, follow the latest trends, and take advantage of its full capabilities.
Digital transformation can help organizations improve how they operate. It entails utilizing digital technology to transform your business models or processes and should be seen as a core digital adoption strategy that must be implemented in all areas of an organization.
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69% of Boards of Directors Accelerated Their Digital Business Initiatives Following COVID-19 DisruptionSource: Gartner
In today’s quickly changing world, whether a company is large or small, whatever its mission, it must include digital transformation in order to be successful. The road to digital transformation might be difficult. However, enterprises must recognize that the expansion of high-speed internet, together with the rapid change in demographic preferences, has necessitated the start of their digital journey and they must experience the advantages of technology in business.
What are benefits of digital transformation?
Depending on their organizational needs, businesses may adopt a different approach to digital transformation. What they all have in common is a desire to enhance their business in the long run and to overcome any challenges that may arise along the road.
The events of 2020 shed light on the benefits of digital transformation for businesses. As employees were compelled to work from home, it was the early embrace of digital technology and the automation of business processes that saved many businesses from bankruptcy and become a digital enterprise.
The benefits of digital transformation are:
#1- A better customer experience
Having a better customer experience is on top of the benefits of digital transformation as it has the power to revolutionize how customers interact with your brand.
Millennials and generation z are used to outstanding digital experiences throughout their daily interactions with different brands and they expect the same level of experience and even better from your company. Without digital transformation, you won’t be able to deliver such an amazing and effortless user experience thus risking losing clients.
In our digital world, there is no chance for a brand to innovate and future proof its business without the complete reliance of digital technologies.
#2- Enhanced business workflows
The traditional way of doing business rely on old methodologies (paper documents) which proved to be inefficient, error prone, and time consuming. In this fast-paced world, we need to be able to achieve high quality business outcomes with less efforts. That only can be achieved by automating business processes.
Digital transformation technologies enable the ability to digitize, digitalize, and digitally transform processes allowing for faster execution and less bureaucracy.
#3- Data-driven customer insights
At this point of time, all organizations know that their most valuable asset is “information”. Without effective management of information, it won’t be easy to understand how exactly your business is performing, which product or service is doing well, or identify areas of improvements.
The first step to achieve a digital environment is to ditch paper documents and start utilizing electronic documents. Automatic data extraction is then employed to collect information from these valuable business assets and store them in a digital storage area for later analysis.
This will enable us using advanced data analytics techniques to identify patterns, gain custom insights, and identify areas of improvements.
#4- Increased productivity
Digital transformation can help your employees eliminate the time wasted on repetitive tasks such as data entry, locating documents, and manual workflows and invest this gained time in more innovative tasks. That is why most organizations look at this point as one of the top advantages of digital transformation.
Did you know that an average knowledge worker spends around 2.5 hours per day searching for information? When information is digitized and properly maintained, they can have direct access to it when needed in a matter of seconds.
Moreover, by automating manual and repetitive tasks using RPA technologies and robots, data entry will be enhanced impacting the overall quality of data thus having more informed business decisions.
#5- Modernized business models
One of the main benefits of digital transformation is the ability to modernize your organization’s services. Consider Netflix and Spotify; these companies are able to give services to millions of consumers due to advancements in the digital world.
New business models will emerge as a result of effective technology adoption, allowing businesses to serve consumers through many channels, boosting their market share and profit margins.
#6– Agility and innovation
One of many reasons to adopt digital transformation is the ability to improve organization’s agility and innovation.
To survive and prosper as a business, it is essential to have a truly agile workplace that allows for fast adjustments in times of uncertainty. Companies must cultivate resilience, or the ability to adapt to change while remaining focused on their primary objective.
In this interconnected world, being able to adapt and respond to changing situations is critical. Organizations should take advantage all the benefits of digital transformation if implemented properly.
#7- Greater collaboration
Digital transformation has the potential to revolutionize collaboration within organizations by breaking down barriers and fostering seamless communication and cooperation.
Through the adoption of collaborative platforms, teams can collaborate in real-time, regardless of geographical locations, enabling them to work together on projects, share information, and make decisions more efficiently.
#8- Improved competitiveness
By enhancing your company’s infrastructure, you increase your competitive edge in your industry and improve your ROI.
Digitalization is the new way to survive and keep up with the developing business market. With the ongoing evolution of the business environment, organizations have a higher chance of competing and surviving in the digital age.
Maintaining a competitive advantage through digital transformation is becoming more difficult as digital-first infrastructure becomes the corporate standard.
Digital transformation is about finding ways to make your business operations more efficient, helping you get ahead of your competition by being more relevant and responsive to customers’ needs.
#9- Increased transparency
Increasing transparency within organizations is considered one of the top advantages of digital transformation as it increases customers’ trust in your brand.
Transparency in business processes is critical for long-term success. If processes and their status are digitally monitored, higher management will have more faith in how things are done.
Well-documented processes and transparent workflow boost an organization’s visibility. Managers don’t have to worry about employees forgetting what they’re supposed to be doing since everyone understands what they’re supposed to be doing at all times. When leaders visualize processes, they can immediately identify bottlenecks and opportunities.
#10- Faster time to market
One of the most significant benefits of digital transformation is the reduction of product lifecycles. If digital technology and automation are already in place, organizations can bring innovative products to market much faster.
It is not just about using digital channels to communicate with customers, but also about the way in which the company operates internally. Digital transformation can help release product faster to market and take early feedback by improving collaboration, reducing time-to-market, and increasing customer engagement.
#11- Improved analytics
One of the most critical advantages of digital transformation is the ability to improve data analytics.
Organizations that take advantage of digital technology to collect information may utilize this data to get deeper insights and understand how the organization is doing at all scales, resulting in a better customer experience and more added value.
#12- Enable future growth
Organizations that implement a successful digital transformation will experience a fundamental reshaping of their business operations and allow them to adapt and innovate in a rapidly evolving landscape.
Consider, for instance, organizations during the initial phase of the rapid spread of COVID-19. Those with a pre-established digital infrastructure seamlessly transitioned to remote work without disruptions, in contrast to numerous businesses that were unable to sustain their operations and consequently faced closures.
In addition, it allows organizations to harness the power of data analytics, artificial intelligence, and automation to make more informed decisions, identify new opportunities, and optimize processes.
#13- Contribute to sustainability efforts
By leveraging data analytics and Internet of Things (IoT), organizations can monitor and optimize their resource consumption, reducing waste and environmental impact. Smart energy management enable businesses to optimize their energy usage, while supply chain digitization helps minimize transportation emissions and reduce overall carbon footprints.
Also, remote working and virtual meetings reduce the need for commuting, thereby lowering gas emissions.