Digital transformation is the process of implementing digital technologies to enable a business to transform its existing processes and become more efficient, effective, and innovative. The ability of an organization to digitally transform depends on how effectively it can leverage its data assets.
Digital transformation is happening in all industries, and the benefits are abundant. If you are looking to implement digital transformation strategies at your local business, Managed IT Services can help.
Why is Digital Transformation Important?
Businesses see the value of data analytics and are integrating it into their business strategy to understand how customer preference has changed. They are also automating workflows and taking full advantage of ML and AI capabilities to offer personalization and customer service.
6 Benefits of Digital Transformation
Holistic resource management
Digital transformation can help you better manage resource allocation, planning, and utilization. It can help you improve the management of your overall resources by making it easier to allocate and plan for the right amount of resources at the right time.
This will result in increased project success rates by avoiding bottlenecks, delays, and other issues that may arise if you have an incorrect number of people working on a project. It will also save time and money because tasks aren’t delayed due to a lack of available staff or equipment.
Delays are common in businesses that use traditional forms of inventory tracking methods like spreadsheets or manual processes like paper-based forms for recording data about their inventories’ locations around their warehouses/farms/factories etc.
Data-driven customer insights
Data provides insights into customer behaviour and uncovers valuable information about your customers’ needs and wants—which means you’ll be able to start making better decisions about what products/services to provide them with.
These enable you to have a clear picture of who you’re selling to—and who isn’t buying from you. With these insights in hand, it becomes much easier for you (and your marketing team) to identify which segments need more attention or resources allocated towards them if they’re going under performing compared with other groups within an organization’s target audience segmentation strategy.
Enhanced customer experience
They will it take to craft a truly personalized customer experience through digital tools is key to business success. According to Forrester, it’s one of the most important drivers of growth in today’s economy, with companies that rank highest in customer experience growing at twice the rate of those overall (11% versus 5%).
Customer satisfaction is also critical; according to a report from Gartner, 73% of customers will pay more for better service or products—and 60% prefer brands that offer helpful support over those who don’t. Finally, enhanced customer experience can create loyalty among existing customers—which has been shown to boost revenue by up to 50%.
Better collaboration
Digital transformation can help organizations collaborate with customers and suppliers in new ways. Digital transformation makes it easier for employees to access information, enabling them to make better decisions and offer more personalized service. It also allows organizations to interact with a broader network of partners, which can increase their competitive advantage.
Increased agility
Improved agility through digital transformation helps companies adapt quickly to market shifts and changing consumer preferences. In other words, it allows them to gain a competitive advantage by being able to react more nimbly than their competitors.
Improved productivity
- Reduced costs: With the right technology in place, your business will be able to reduce costs and improve efficiency. This can include reduced paperwork and manual processes, as well as lower energy bills when you’re using more efficient equipment or software.
- Higher quality output: Digital technology allows for faster processing of information with a lower scope of errors. You’ll also have access to data from multiple sources of information.
- Increased efficiency: Digital transformation tools can help unlock a whole new level of efficiency in business process transformation.
Post courtesy: Nora Erspamer, Director of Digital Marketing at New Charter Technologies.