According to the Digital Transformation Index 2020 report by Dell, eight in ten organizations have a digital transformation plan. The study which interviewed more than 4,000 business leaders globally also shows that 89% of organizations say there’s an even greater need for digital transformation and business to be merged on the back of the coronavirus pandemic.
It’s the clearest evidence yet of where the world of businesses is headed. Even in the middle of the Covid19 crisis, business leaders are still finding ways to push along their digital transformation plans while encouraging others to follow suit.
So, should you jump on the bandwagon? Should you establish a digital transformation plan too? We believe so. Read on to find out why.
Digital transformation is the application of digital capabilities to processes, products, and assets to boost efficiency, increase customer value, and manage risk. It’s the adoption of digital solutions to minimize risk and navigate new revenue generation opportunities.
The process is both internal and external, involving in-house changes to people, information, and processes to improve results as well changes to external relationships to boost efficiency while reducing costs. Indeed, a successful digital transformation is characterized by a fundamental shift in operations, a culture shift, and a rethink of the organization’s status quo.
According to Accenture, digital transformation and business is the key to unlocking new opportunities in the modern world. “Companies need limitless, adaptable, and essentially human systems to thrive in the ever-changing world,” the Accenture report says.
Automation is perhaps the best evidence of digital transformation. Organizations can now automate processes such as email marketing to reach customers with better marketing messages. It also enhances timing, effectively improving open rates and email conversions. Another common tool in the digitally-transformed organization’s toolbox is Artificial Intelligence (AI).
If you’re wondering whether you should jump on the digital transformation bandwagon, the following are five ways a transformation can benefit your business.
If you haven’t realized, the economy has changed from a seller’s market to a buyer’s market. Sellers no longer call the shots. They no longer determine what the customer buys. Unlike in the past when the seller had the monopoly over buyers, the buyer, with information at their fingertips, now have more say. Thus, sellers are now required to reach out to buyers rather than the other way round.
The only way to survive in a buyer’s market is to embrace digital technology. Think about a seller who wants to purchase shoes but will only do so from the comfort of their sofa. They aren’t willing to head down to the supermarket anymore. So, what can the supermarket do? The only solution is to establish an online presence that allows that customer to purchase the desired shoes online and have them delivered on time. For such businesses, digital transformation and business is no longer just a thought to be entertained- it’s the key to success.
Think about the time it takes to capture employee details and process payroll. Back in the day, all these were handled manually and it sometimes took weeks to prepare a month’s payroll. The worst part is errors. Manual payroll processing is characterized by mathematical errors that can cost the company dearly. Duplications alone can cost the company thousands of dollars annually. Yet, tacking and resolving the duplications is even more difficult.
Digital transformation solves most of these issues through automation. Rather than capturing and processing payroll and other processes manually, you can now implement software solutions that do the same in a shorter time – with fewer errors. Improved efficiency ultimately means greater productivity and higher profitability.
The digital revolution has led to a scramble for consumer data. Everywhere you go, organizations are spending millions of dollars to acquire user data to help them make better business decisions. Embracing digital transformation would allow you to join the revolution. By implementing digital solutions throughout your business, you can capture valuable data to drive profitability and growth.
For example, an organization may collect customer data to help them optimize the customer journey. You can capture customer entry points to determine which channels bring in the most customers and which ones perform poorest. Then, using the data, you can invest more in the high-performing areas. If most of your customers come from Google ads, you may allocate more money for Google advertising in your next budget.
A digital transformation for business can help you acquire new business partnerships. If you’re wondering how, the first thing you need to think about is how peer-to-peer business relationships work. Essentially, it means two businesses that view themselves as similar coming together to do business. If you’re not digital yet, digital enterprises may not see you as a “peer.”
Additionally, merging digital transformation and business can help you strengthen existing partnerships and get more from your current business relationships. Consider e-signatures, for instance. Wouldn’t it be a lot more effective when you can sign off on loans from your laptop or smartphone without visiting your lender’s physical office? It creates a new level of transparency that entrenches trust and confidence from both business partners.
Finally, security is a critical matter in the modern business environment. Think about the consequence of employee smartphones in the workplace. Think about the viruses and malware sitting on your business computers and systems. Think about the external threats from cybercriminals and the loopholes or weak links in your security chain.
Many organizations rarely think about these threats. However, you’re not safe until every link in the business chain is secure. If the same employees who constantly receive email updates from the company occasionally use public Wi-Fi to access the internet, you’re already at risk. If you allow personal laptops in the workplace, you’re also at risk. The only solution is a complete digital transformation that includes security measures to safeguard your organization.
Merging digital transformation and business can be the catalyst you’ve been waiting for. Although not a magic wand, it can be the turnaround moment for your business. However, you must start now. Otherwise, you risk lagging behind your competitors.