Oct 09, 2023
2 min read
What is digital transformation?
Digital transformation happens when a business transforms itself to use digital technologies to achieve its goals. It’s a different, comprehensive strategy for connecting with customers, revolutionising company operations, and gaining a competitive edge. We explored this subject more in our article “What is digital transformation?”.
Why is digital transformation so important?
Digital transformation is the key to success in today's fast-paced and interconnected world. Companies can transform to digital or be left behind in the market.
Digital transformation brings forward digital technologies and allows for taking full advantage of digital tools, software applications, and cloud-based solutions. It optimises the business model for modern times, leveraging cloud computing to increase efficiency and accelerate growth. Cloud-based solutions reduce the need for model hardware and give access to on-demand resources, allowing the company to work smarter, not harder. Easy collaboration and communication within and between different departments or teams is a benefit that is hard to miss, especially in big companies.
What are the benefits of digital transformation?
Digital advancements are shaping the current industry, so it’s crucial to recognise the importance of digital transformation. Let’s zoom in on a few of the most essential benefits of making your business more digital.
Better customer experience
The main benefit of digital transformation is delivering a better customer experience. With multiple contact points, an organisation or a business can offer a smooth omnichannel experience. The real advantage lies in having its own website or a platform where a business can directly communicate with customers, personalise those interactions, and, as a result, anticipate customers’ needs. This leads to higher customer engagement and satisfaction, which can turn an average customer into one who’s happy to come back and recommend the business to their friends. We discussed different benefits for different forms of business in our articles on B2B e-commerce, B2C platforms, and corporate websites.
Drives data-based insights
When a business turns digital, it can bid farewell to assumptions and guesses about what its audience wants. With the information from advanced analytics and data management solutions, the decisions about customer approach are driven by data. Identifying industry trends and streamlining processes is a benefit in itself, but it also means having a deeper customer understanding and preparing more targeted marketing strategies.
The market is changing rapidly - there are new technologies, trends, customer demands, and more daily opportunities. A business must adapt to market shifts if it wants to stay afloat. A digital transformation enables the business to stay agile and ahead of its competition by fostering innovation, streamlining processes, and reducing time-to-market. And why follow the change when you can drive it?
Working in a cloud and using digital tools means more efficient collaboration, especially if the employees work from different parts of the world. Sharing information, documents, and knowledge over one platform or using an available digital tool can improve teamwork and productivity. Communication and collaboration become seamless; even if someone is no longer employed, what they shared stays on the cloud, and what they’ve learned can be shared with future employees. In other words, a digital transformation means saying goodbye to lost documents and taking advantage of everything your company has gained: in the past, present, or future.
With plenty of repetitive and manual tasks automated and operations streamlined, efficiency reaches a new high after digital transformation. With easier communication and collaboration, thanks to digital tools and access to an information database, you can direct your employees to focus on more high-value tasks. This change translates into higher productivity and operational effectiveness.
Accelerated innovation and growth
If you want to build a new product, polish your services, or simply offer new value to your customers, digital transformation supports innovation. A transformation of your company into a fully digital business (or at least partially so) brings new opportunities: exploration and development of new business models as well as the possibility to enter yet-untapped market segments. In other words - why settle for being one of many when you can transform into an industry leader?
Enhanced security and compliance
Law compliance and data protection might be a challenge for some organisations. However, if they implement digital solutions with built-in data security features, it all becomes a piece of cake: robust encryption, authentication, and control measures guarantee safety for sensitive business and customer information. Cybersecurity not only decreases the risk potential but also helps build trust with customers who are becoming increasingly more careful with their online privacy.
Improved resource management
Another benefit of digital transformation is optimised resource management. The available digital tools and solutions facilitate the tracking and managing of resources by streamlining supply chains and improving inventory management while keeping the costs relatively low and improving operational performance in the process.
Digital transformation is more than just the next move for every company; it’s a strategy that will allow your business to achieve long-term success in the current, more digital-than-ever landscape. Make your decisions data-driven, increase the company’s agility, and become your industry's innovation leader by realising the digital world's full potential. Because ultimately, at this point, a digital transformation means future success.