Digital transformation- a word that is associated with innovation on one side and disruption on the other. Where the term “digital” implies its association with technology, “transformation” suggests how it cannot be defined by just technology alone, rather by combining it with the instigation of a new mindset and a new culture.
Today, when it is all about survival of the fittest, digital transformation is a survival strategy for businesses- one that will help shape their growth around new possibilities. The advantages of digital transformation are so much that 66% of CEOs in Global 2000 companies have it at the center of their corporate strategy.
What is Digital Transformation?
Before I tell you what it is, let me tell you what it is not. It is not digitization. But does digital transformation bring about a technological shift? Yes. In fact, digitizing the existing processes in a business is the first step of digital transformation.
Digital transformation is a strategy to help businesses align with the digital economy. It is a strategic repositioning of businesses, meant towards changing, innovating, and reinventing organizations. The goal is to become customer-centric; to put people above technology. And for that, the power of digital is utilized. Digital transformation requires a radical new vision. It is a cultural change- a strategy of empowerment, exploration, and innovation.
Why is Digital Transformation Important?
Why undergo a business transformation? Why not continue doing business the way it has been done by your predecessors?
Let me give you an example. Have you heard of Orkut? Launched in 2004 by Google, it was the first social networking website. Though it was very popular among its users, it closed down in 2014. Several factors led to its shutdown, but the most prominent one was its inability to compete with Facebook- a newcomer that offered a more simple, interactive, and fast experience to users.
So if you don’t level up your business game and keep on clinging to age-old strategies, it would be difficult to operate, and it won’t be long before you run out of business.
The advantages of digital transformation are many. It assists businesses by enabling people to work better and smarter. It redesigns business workflows to be flexible, consistent, and simple. It encourages collaboration and mobility to increase productivity while integrating security and transparency to all processes. Thus, several digital transformation consulting services have started operating worldwide, and businesses worldwide are availing the transformation services for their betterment.
Examples of Real Life Digital Transformation by Industry
Now let us see some real-life examples showing the part digital transformation plays in some of the popular industries we know.
Finance: Applying digital transformation in financial services can reduce a lot of paperwork and increase efficiency. For example, when banking is moved online, customers can carry out many processes such as balance check, money transfer, and loan applications by themselves. Finance advisors can spend their time helping customers with complicated tasks.
Manufacturing: Integration of IOT services throughout manufacturing processes can help automate a lot of things. Tasks such as inventory control, stocking, real-time tracking of manufacturing processes can be performed through digital tools.
Agriculture: The agribusiness utilizes digital transformation to carry out processes such as crop monitoring, field watching, crop spraying, etc. This helps to improve productivity and reduce time and human effort.
Insurance: Insurance companies have many processes such as insurance filing, assessing, approval, which can hugely benefit from going digital. It will encourage customer self-service, streamline processes, and speed up processing.
Top Ten Benefits of Digital Transformation
To stay relevant in the future, businesses have no way but to adopt the top digital transformation trends. If you are still unsure about the advantages of digital transformation, go ahead and read this section where we look at the top ten benefits of digital transformation.
1. Improved customer experience
With the stiff competition going around in every industry, providing increased customer satisfaction is the only way to retain customers. One of the advantages of digital transformation is, by leveraging digital tools, it is possible to provide omnichannel support for customers so that they can contact through phone, website, app, or any of their preferred methods.
Using AI-powered chatbots for customer support is a reliable and practical approach. When everything is digital, it is easier to follow up, track, obtain feedback, and provide personalized support. This will help companies to provide a transforming customer experience.
2. Data based insights
Anything that can be measured can be managed. It applies to data as well. When you go digital, you get access to data related to your operations. By tracking and analyzing this data, businesses can optimize their strategies. Data can be used to get an insight into problem areas, customer behavior, employee performance, etc. Further, obtaining data using digital tools provides relevant data more easily and quickly as compared to manual methods such as surveys, interviews.
Data-driven business decisions will provide more leads as an organization will be able to make educated decisions by recognizing patterns, identifying opportunities, and providing what exactly is needed.
3. Easier collaboration
One of the great advantages of digital transformation is the process of storing documents and files in a central server through the utilization of project management softwares. This enables real-time collaboration and creates unity throughout the organization. Collaboration with clients and teammates becomes easier and more effective; thus, it encourages the spirit of teamwork.
4. Better market perception
Using digital tools, it is possible to gain information about the target market so as to launch your business there accordingly to gain more reception. With excellent data analysis, obtaining real-time demographic details is easy. Thus entering into any market and penetrating the audience will be more successful as it is backed by solid data and not assumptions.
5. Automation of business processes
The most visible benefit of digital transformation is the optimization of business processes by eliminating tasks that require a lot of human time and effort. Using softwares to automate repetitive tasks such as tracking, processing, and notifying are essential but key areas where digital technology can be used to reduce manual work. This also helps to perform tasks with greater accuracy and in a shorter period.
6. Increased scalability
Often, businesses are limited by the old age technology that they follow. Digital transformation helps to break free of the traditions and integrate modern software and processes into the operation of organizations. When processes are digitized, there are no restrictions on scalability. Using scalable alternatives and eliminating manual intervention, digital transformation enables organizations to be responsive to innovation.
7. Enhanced reliability
As an organization grows, it is difficult to rely on older systems. Security or data loss becomes a major concern then. By implementing digital tools, it is possible to manage this risk effectively. According to a survey, 49% of organizations say their main objective of business transformation is securing customer data. Thus, to be a reliable organization for people within and without, digital transformation is an integral method.
8. More productivity
When repetitive tasks are digitized, employees get time to focus on important things. Further, digitization provides a means to optimize their specific tasks, so naturally, employees’ productivity increases. Automated business processes, easy collaboration, etc. drive employees to do their best and help them perform tasks independently without dependency on co-workers. This saves time and increases the productivity of the entire organization.
9. Reduced infrastructure cost
When you switch to cloud solutions from traditional, on-site architecture, the cost of infrastructure reduces extensively. There is no need to buy servers or maintain them. Cloud storage provides instant access, and there is no need for maintenance. You can also avail just the resources you need at a particular point in time and pay only for that. Further, extending for urgent requirements is also easy and cost-effective.
10. Remote data access
This is one of the essential advantages of digital transformation that has great relevance in today’s times. With pandemic hitting and social distancing becoming a requirement, remote working became a necessity. And slowly, it is becoming a norm. DIgitizing operational processes are crucial for remote working to be successful. Collaborating with team members, accessing files, sharing information- everything requires the hand of digital technology.
When the Coronavirus pandemic hit, companies that had digital transformation strategies in place found it easier to cope than the rest. With the acceptance of remote working all over, remote data access is now a requirement for organizations.
How MindsterDX Powers Digital Transformation
MindsterDX is a leading digital transformation company that helps businesses digitize and grow profitably. Renowned for building world-class applications since 2003, we help our clients adopt the right technologies for optimizing their businesses. Our hands-on industry experience and technical knowledge make us the right partner for your digital transformation needs.
Are you looking to drive your business to new heights with digital transformation? Get in touch with us to request a free DX evaluation. As a leading technology service provider, we provide practical solutions that are guaranteed to work.