You’ve probably heard or come across the term digital transformation – it seems like the trending buzzword that is in every business forum. However, with all the hype and different interpretations, most people don’t know what digital transformation is or why it matters. In this article, we will explore what digital transformation means to a business as well as what the benefits of digital transformation look like for a business.
What is Digital Transformation?
The meaning of digital transformation will vary depending on the industry you are in. however, generally, digital transformation is the integration of digital technologies into all aspects of business operations. Put differently, it is the incorporation of information, mobile and computer technologies into the overall business strategy of a company.
Why Does Digital Transformation Matter?
Even if you are not well versed with the term digital transformation, you’ll understand that adapting digitally is more than an afterthought in today’s business environment. Digital disruptors are snapping at the heels of many industries and now more than ever, it is clear that only the businesses that progress their transition to digital transformation will remain relevant and competitive. Additionally, for maximum effect, the transformation must be weaved into the foundations and culture of the company and also championed by the leadership to the employees who also need to be skilled in the best practices of the digital age.
The majority of businesses that are looking into digital transformation are lured by the promise of its incredible benefits. So, what are the benefits of digital transformation to a business?
Benefits of Digital Transformation to a Business
Better Customer Experience
Every business craves to deliver better customer satisfaction. Digital transformation has transformed how companies engage with their customers through advancements in technology. In effect, companies are in a better position to fulfil customer needs and therefore provide a better and more consistent experience. Speed is an essential part of creating a satisfactory customer experience. Digital transformation empowers businesses to serve and engage with their customers quickly thereby improving their experience.
Improves Employee Skill Set
As mentioned, the success of digital transformation relies on employees being able to learn and understand the best practices of the digital age. As companies adopt new technologies, employees will need to update their skills to adapt to the changing environment. An increase in company employee skill sets consistently improves the quality of work, creates agility and better communication among all departments.
Encourages a Digital Culture
Digital transformation needs to be holistic and comprehensive. It covers a huge number of interactions, processes, changes, transactions, external and internal factors, technological evolutions, industries and more. This holistic transition radically changes the company culture and empowers employees to easily adapt to technological changes. In turn, this digital culture creates the perfect environment for increased productivity, employee creativity and also leads to innovation.
By its very nature, digital transformation encourages and requires employees to be continually learning and improving their skills. This helps keep employees agile and motivated.
Improves Data Collection and Analysis
Digital transformation data analytics tools that make it easier to monitor, collect and analyse consumer data to aid in the decision-making process. By studying consumers’ online habits, companies can enhance their business strategies and make more informed decisions.
Consolidates Process and Operations
Perhaps the biggest advantage of technology is in making it easier for businesses to connect with people. Digital transformation allows businesses to not only consolidate their workforce but also their entire architecture. Social media, project management and analytics are interfaced to better connect with the company’s target audience and satisfy their needs.
Increases Business Profitability
In most cases, and when successfully implemented, digital transformation affects other areas of your business positively. For instance, improving customer engagement and experience inspires customer loyalty. In turn, your loyal customers are encouraged to make more transactions and also refer their friends and family. This creates a self-sustaining cycle of growth and profitability.
Helps Stay Ahead of Competition
To survive in business, you have to be able to compete. To succeed in business, you need to be able to compete with or be better than your competition. As the world becomes more digitised, the competition will continue to grow and only those businesses that can adapt and excel in the new environment will survive. Through digital transformation, you are effectively placing yourself in the right position to take advantage of new technology and to continually improve your business for greater success.
The benefits associated with digital transformation in businesses are more than those listed above. For most businesses, they have derived more gains from their digital transformation process than they anticipated. While the process might appear like a challenge in the short term, the long term business benefits of digital transformation are well worth it. As a business owner or leader, digital transformation should be on your list of crucial projects to undertake. Contact us today, to learn more about how digital transformation can look in your business and practical advice on how to get started.