How can digital transformation reduce business costs?
Digital business transformation constitutes the integration of digital technologies in all areas of a business. It integrates new operational processes with improved values delivered to the consumers. Did you know that by 2023, the spending on the technologies and services that enable digital transformation worldwide is expected to amount to 2.3 trillion U.S. dollars.
The above-shown statists will help you understand the global digital transformation market revenue from 2017 to 2023. By inculcating a digital business transformation strategy, you will experience a cultural shift towards more agile and intelligent ways of doing business, powered by technologies such as advanced data analytics and artificial intelligence.
Digital transformation for business growth in the current landscape is more a matter of necessity than a matter of choice!
How Are Businesses Going To Function Post Covid-19?
There is no denying the fact that the current pandemic has drastically affected the way an organization works. Let’s pay attention to the current truth of the business world, shall we?
- Increasing operational efficiency and transforming the existing business are the most important business initiatives
- 63% of organizations believe that delivering excellent customer experience as measured by customer satisfaction scores defines success as a digital-first business
- Improving customer experience and increasing cybersecurity are also essential initiatives considering the pandemic
Can Digital Technology In Business Help in Cutting Unnecessary Expenses?
If you want to keep your budget in control then without any doubt your biggest ally is technology! Digital business transformation solutions as a whole cover three major sectors – operation, strategy, and management. In the operations sector, one can start with processing data in the cloud, digitizing business processes and documents, and optimizing processes.
Digital transformation strategy changes the way business functions by focusing more on customer experience and needs. In the aspect of management, it revamps the entire business model of a company further taking advantage of the commercial and productive opportunities created by the current digital trends.
How digital maturity drives revenue?
If you completely understand the importance of digital transformation in business then you know how investing in technology can lead to higher revenue by providing your consumers the well-deserved value. A pattern that held true across all industries was that higher-digitally mature companies in this year’s sample were about three times more likely than lower-digitally mature companies to report annual net revenue growth and net profit margins significantly above their industry average.
7 Benefits Of Digital Transformation In Business
1. Revenue growth
Companies that implement the digital transformation business model see an improvement in their efficiency and profits. Let’s talk numbers!
- 80% of organizations that have completed the digital transformation report increased profits.
- 85% say they have increased their market share.
- On average, leaders expect 23% higher revenue growth than competitors.
2. Increased efficiency
Software development companies open up the possibilities of what is working fine and what can be improved. Constant efforts are being made towards reducing the time of execution.
With the help of digital tools, companies can not only see efficiency in their workflows but also in their supply chain by integrating those tools at each stage of development of a service or product delivery. This process can be as simple as tweaking an existing process by including a digital checkpoint or as advanced as automating a process and remote monitoring the output at each stage via IoT devices.
The traditional ranges of productivity and efficiency have now indicated an increased possibility of cost improvements to about 25%. Not only this but incorporating practices like remote monitoring, robotization, and optimizing the entire workflow improves the labor costs in percentages above 60%.
3. Increased consumer satisfaction
DT drives customer experience towards ultimate brand resonance. This is not a secret anymore. Businesses across numerous sectors are using digital platforms for gaining insights into customers’ needs, using technologies to communicate directly with their customers, and inherently transforming customers’ touchpoints.
Here are some of the ground-level ways that digital transformation solutions entail for their consumers:
- Personalizing the customer journey
- Seamless omni-channel presence
- Embracing automation to keep customers updated.
We simply cannot deny the fact that organizations that are able to leverage design thinking into their current structure will see a significant advantage in customer experience!
4. Improved data collection and analysis
Data collection and analytics have opened up new windows for digital businesses. Data analytics tools make it easier to collect and analyze customer data and further result in making informed decisions. Data can be securely hosted on a cloud-based system, which will further allow you to save up to 50% when compared to traditional data management systems. It is one of the best ways to enhance your strategies by studying the online habits of your target audience.
5. Increased flexibility and scalability
The impact of digitalization on business is such that it allows you to explore scalable alternatives. It breaks you free from the processes that come with old technology that accept manual inputs. Modern software and processes allow one to integrate various business parts, further making it more flexible. Tasks like service requests, providing support, or connecting the data can now be automated without manual intervention.
6. Enhanced reliability and reduced risks
From a technical point of view, the old technology cannot back up, maintain and protect the data of your company as well as of your customers. This will certainly make your business an easier target for cybercrime. Hence, as your organization will grow, the technology and processes have to evolve.
By upgrading to digital tools, you’ll see improvement in the efficiency and effectiveness of current risk- management approaches. Also, remember that digital risk initiatives can reduce operating costs for risk activities by 20 to 30 percent.
7. Increase agility
Business transformation makes organizations more agile. You can improve speed-to-market pace and adopt continuous improvement and continuous deployment strategies. This will not only make innovation happen fast but also increase the rate of adaptation while providing a pathway to improvement. Also, let’s not forget that business transformation consulting firms will keep you at the top of your game among your competitors.
To Sum It Up
I have listed above the reasons such as automating tasks for improved efficiency and effectiveness, enhancing customer experience, increasing flexibility, scalability of your business, and reducing risks; but the most important thing is to keep your business objective in mind!
Below listed questions like –
- What do you want to achieve via digital technology that you can’t in the present scenario?
- What value addition do you want for your customers to experience that your current technology and processes are not allowing?
- How do you plan to collect the data and use it for your target audience?
- What manual tasks can be cut off by the introduction of digital tools?
- What revenue growth do you expect if you invest in new technologies and tools?
In order to start the evolution process of your company, contact a digital transformation solutions provider now to transform your business journey strategically and as smoothly as possible!
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