Technological change is one of the main concerns of modern companies. Nowadays, the most advanced progress is taking place at an extremely fast rate. For companies that want to stay up-to-date and take advantage of the benefits of innovation, updating tools and processes is almost a continuous process.
The COVID19 pandemic has increased the pressure on companies to further their digital transformation. The global crisis has led companies to adopt remote work and adjust recruitment models. The pressure brought by the pandemic is accelerating digital transformation efforts. It is expected that in 2021, global digital technology and service spending will grow at a rate of 10.4%.
In the uncertain economic environment and large-scale market chaos, companies that cannot change their operations can maintain them and prosper. The uncertainty brought by COVID19 shows more than ever that companies must be agile and adaptable if they want to achieve long-term success.
What does this mean for 2021 and the near future, especially as the world adjusts to the “new normal” after the pandemic? This guide explores how digital transformation would benefit your business and shows some decent reasons why traditional businesses would need to consider digital transformation as an effective long-term solution.
Why would we need to do digital transformation?
Below are 6 obvious benefits when your business does digital transformation:
1. Big improvement on data collection
Most companies are collecting massive amounts of data about their customers through traditional paper work, but the real benefit is optimizing this data for analytics that can move your business forward. Digital transformation creates systems that can gather the right data and seamlessly integrate it into higher levels of business intelligence that would save a lot of time compared to the traditional method.
It creates a way to translate raw data into information across different touchpoint areas in different functional units in an organization.
This gives a single view of the journey, operations, production, finances and business opportunities of customers.
2. Better resource management
Digital transformation consolidates information and resources into a set of business tools. It brings company resources in one place instead of dispersed software and databases. In enterprise businesses, the average number of applications in 2020 is 900 and it makes a consistent experience exceptionally difficult. Applications, databases and software can be integrated as a central business intelligence repository in digital Transformation.
Digital transformation is not a department or functional unit, instead it covers all areas of the business and can lead to process innovation and efficiency across the departments.
3. Data-driven customer insights
Customer insights can be unlocked using data. You can create a customer-centric business strategy by better understanding your customers and their needs. These insights can help drive business growth by combining structured data (personal customer information) and unstructured data (social media metrics).
Data enables strategies to deliver content that is more relevant, personalized, and adaptable.
4. Better overall customer experience
When it comes to their experience, customers set a high expectation. Customers have grown accustomed to having an abundance of options, low prices, and quick delivery. Digital transformation helps to boost customer experience by providing the ability to enhance their experience with quick and modernized processes and tools.
5. Increased agility and productivity
Digital transformation is agilizing organizations. With the help of software development, companies can increase agility by digitally transforming themselves to improve their speed on the market and adopt Continuous Improvement (CI) strategies. This allows faster innovation and adjustment as well as an improvement path.
As a result, this helps to streamline workflow and improve productivity It enables members of the team to work more efficiently by automating many manual tasks and integrating data throughout the organization.
6. Robust boost on profits
Digital transformation companies enhance efficiency and profitability. Take into account the findings of the SAP Center Business Insights and Oxford Economics:
- 80% of digital transformation organizations report increased profits. 80% of organizations
- 85% say their market share has increased.
- Leaders expect a 23% increase in revenues on average compared to competitors.
How to choose the best agency to tailor your digital transformation needs?
With all the benefits above, digital transformation should be an option that every traditional business needs to consider. Amongst thousand of tech companies that offer the digital transformation service, it must be a very tough decision to choose between them. A few tips for your reference:
- Check portfolio and communicate with previous clients: Check their portfolio carefully and try to pay attention to the feedback from their previous clients (if any).
- Check their company website and see what tech stacks they offer. Are those the most recent edge technologies?
If you still have questions/concerns, need advice or are looking for the best agency to carry out digital transformation for your business, please do not hesitate to reach out to us at [email protected].
Check out our blog posts for more interesting topics: https://inovatorotech.com/blog/