In the league of transformations, this digital one has been the most disruptive of all, impacting our businesses in the least amount of time. With innovative goods and services, better methods of working, and agile organizational structures, digital transformation opens up new possibilities for any business.
In the IDC Worldwide Semiannual Digital Transformation Guide, experts highlighted that the worldwide spending on technologies and services that enable digital transformation would reach $1.97 trillion in 2022. By 2022, the total amount spent on digitalization globally would surpass $2.1 trillion.
This article aims to provide important facts about what digital transformation offers to businesses, emphasizing the various arenas where its benefits help firms flourish.
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What is Digital Transformation?
Simply put, digital transformation means using modern technology to optimize business processes to generate growth in both new and existing markets. It aims to improve consumer experience as well as growth and efficiency in businesses.
One can see the importance of digital transformation in business trends within a decade itself. With a rise in social media platforms, there is a shift in how consumers interact with businesses; we can see many small businesses taking up having models that are almost entirely digital-based.
A few years back, for purchasing small things such as a bottle of shampoo, or soap, you had to visit the store to purchase it, but now you can have everything at your doorstep sitting on your couch- from basic to bigger items in just a few clicks – all thanks to digital transformation.
The World Economic Forum suggests the value of digital transformation for both society and industry could reach $100 trillion by 2025. But what is so convincing about digital transformation to firms, that each one is looking forward to adapting it into their business models? Let’s find out.
How is Digital Transformation beneficial?
1. Transforming Customer Experience
The core change that comes along with digital transformation is customer experience. Engagement with customers increases as digital technologies allows businesses to collect, store, and analyze consumer data, allowing them to cater to the customers’ individual preferences.
This is something that more and more businesses are becoming aware of, with 92% of CEOs creating comprehensive digital transformation strategies to improve the customer experience.
2. More Data-Based Insights
As a company goes digital, it can measure the metrics and analyze such data collected during its digital marketing initiatives. Therefore, one of the most significant advantages of digital transformation is that it will enable your company to collect and analyse data that can be turned into practical, revenue-generating insights.
For example, YouTube, being a digital platform provides data-driven insights regarding audience demographics, subscriber growth, audience interests and interaction that help a business in growing their channel and thus, generating revenue from it.
3. Greater Collaboration Across Departments
Digitalization offers an excellent opportunity for unity throughout the organization as it is then based on digital congruence. To increase innovation and output, businesses must have a digital platform that encourages communication and collaboration across all internal divisions.
Roundabout interaction, redundancy, slow reaction times, lost information, and ineffective idea-sharing are all eliminated via digital transformation. When firms digitalize their company’s internal communications, they will boost productivity, accountability, and creativity, and gain a competitive advantage.
4. Improved Agility and Innovation
Digitally mature organizations can quickly scale up or down based on changing demands due to their growing dependence on cloud computing. In addition, businesses can increase their agility with digital transformation to improve speed-to-market and implement Continuous Improvement (CI) techniques by borrowing from the field of software development.
This enables quicker invention and adaptation while also giving a path to improvement. Regarding, Digital Transformations, 68% of companies rank agility among the top three considerations.
Agile hybrid IT services are increasingly in demand in this digital age. The value of digital transformation is increasing in every aspect of business because of Agile and Scrum Certification.
5. Cutting Costs
Technology can pose a valuable stakeholder in the process of cutting costs of an industrial company in the face of the future. The introduction of digital technology results in the transformation of procedures and the digitization of documents, resulting in the optimisation of overall performance. As a result, unnecessary spending is reduced, resulting in lower labour expenses.
In a Nutshell
To meet new demands, companies are making digital and technology investments across the business model. Companies wishing to survive in their sector will have to adopt digitalization as a fundamental part of their core.
Digital transformation in the industry has gone from being a choice that could give companies a competitive advantage to being a necessity for surviving in the context of modern industry.
For everyone else, the time has come to make significant investments in technology and capabilities that will position their companies to beat competitors and more importantly, stay relevant as a business in this fast-changing landscape.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.