When we talk about digital transformation, we’re talking about the change within a company or organization that means it can integrate digital technology into its processes at every stage – where possible, at least. The result is that the business should be more profitable, run more smoothly, and be seen as up-to-date and modern, all positive things.
As more and more businesses start to do business in the cloud, more and more of their processes need to be transformed into a digital version. This means that they can be stored in the cloud. However, real digital transformation is actually a lot more than just this switch in storage methods; what it can really do is develop a framework of technology that ensures your business is not going to be left behind at any stage of its growth.
Why is Digital Transformation Important?
The way a company works is changing as a result of digital transformation. All systems, procedures, workflow, and culture are assessed along this road to change. This transformation impacts every level of a company and pulls together data from various areas so that employees will be able to collaborate more efficiently.
It also enables companies to make a connection on the customer journey in ways that were not possible or even considered before. This is done by leveraging workflow automation and sophisticated processing technologies such as artificial intelligence (AI) and machine learning (ML).
Read on to discover some of the ultimate benefits of digital transformation and why it’s a good idea to start implementing these changes within your business as soon as you can. Once you know more about digital transformation and what it can do to benefit your business, you’ll know why you need to move ahead with any plans you have for it. Don’t worry if it seems like a difficult thing to do; there are online courses in all kinds of digital professions available, from digital journalism to digital marketing, and digital transformation is something that you can learn at a deeper level should you choose to.
Enhanced Data Collection
Most organizations amass huge amounts of data about their customers. This will include:
- Contact details
- Payment details (such as credit card numbers and bank details)
- Date of birth
This information is necessary when you have a business in the 21st century, and customers will generally be happy to pass on this information. When used correctly, this data, collected with permission, isn’t just a way to assist with delivering goods to the right place or speeding up the buying process for the customer; it’s also a way for businesses to understand more about those customers and to create a buying persona to help them with their marketing. If they know who is buying from them, they can tailor their digital marketing in the right direction, ensuring that it will interest the right people and boost their profits.
When it comes to digital transformation, your business will be able to seamlessly and accurately collect this massively important data and store it for insights later on. When this is done in an automated way, it’s one less thing for you to think about, and you’ll know that the information is entirely accurate and exactly what you need. This means your organization’s marketing division can much more easily turn this raw data into useful information.
Greater Resource Management
Digital transformation combines information and resources into a set of business tools. Rather than having a lot of different programs and software, or even a lot of different machines (depending on the business you are in), everything can be consolidated into one place, somewhere easy to access and where everyone can find exactly what they need.
Right now, there are hundreds of different programs and applications for use in business. This can make knowing which ones to use and which to avoid, which will enhance your business and which are an expensive mistake, a difficult challenge to overcome. When all of the useful applications you’re going to need can be streamlined thanks to digital transformation, your business will run more smoothly, and it will move in the right direction.
It should be noted that the term ‘digital transformation’ covers every aspect of a business. It’s not limited only to the marketing department, for example. When you work hard to ensure your digital transformation is thorough and correct – with or without outside help, although if you are unsure at any point as to what you should do, an external organization’s assistance will be useful – you’ll create a centralized repository for corporate insights that will help to grow your business and ensure that you get ahead of your competition.
Data Driven Customer Insights
Data has the potential to be the key to uncovering customer insights. You have the chance to build a more customer-centric business plan by better knowing your customers and their demands. These insights can assist in improving the success of your business by utilizing both structured data (personal customer information) and unstructured data, such as social media analytics. Data allows strategies to deliver more relevant and customized content.
Since your business plan is the key to the future of your business and will help you to achieve your goals as well as allow potential investors and lenders to understand more about what you’re doing (and what you intend to do) so they can make an informed decision about lending you money when you ask for it, any data you can use to prove your points and offer evidence as to why you know your business is going to be successful.
A Better Overall Customer Experience
When it comes to their overall experience with a business, online or offline, customers have sky-high expectations. They have grown accustomed to having an abundance of options, reasonable pricing, and quick delivery. Customer experience has become the biggest battleground between rival businesses; no matter what you sell or how you sell it, if your customer experience is lacking, you will lose business and potentially your reputation. If, however, your customer experience is more positive, then you will have returning customers and receive positive reviews and testimonials. You’ll also have word of mouth marketing to rely on. All of this will profit your business.
Digital transformation allows you to enhance the overall customer experience by streamlining your processes and ensuring that, although there should always be a personal, human element involved in any business, what happens is as automated as possible to reduce mistakes and provide the customer with exactly the service they want.
Encourages a Digital Culture
Digital transformation fosters a digital culture by giving team members the appropriate tools for their surroundings. When your staff has the correct software to do their jobs in the right way, they will become much more comfortable with using digital technology, ensuring that there is a complete uptake in these measures across the board. Something that can affect how successful a business is is a lack of understanding among employees. They will continue to work in the way they have always worked because this is what they understand, and this is what they are comfortable doing. No matter what digital measures you put in place, they will continue to work in the same way.
However, if you are able to encourage a digital culture through your digital transformation by, rather than implementing all changes at once, going through each process at a time and switching to a digital method where possible. This will give your employees time to get used to the idea and the chance to see how the digital transformation is working across other departments. While these technologies facilitate communication, they also assist in taking the entire business forward digitally. This digital culture will become increasingly important in the future. Remember, training may be required, so ensure you factor with into any changes you make.
It should come as no surprise that when you implement a digital transformation strategy, your profits will rise. After all, you are putting measures in place that will make your business more streamlined and efficient, that allows your workers to be much more productive, and that offer your customers the chance for the greatest experience with you. All of this will add up to more sales and more profits.
Whether you want to carry on running your business for many more years, you intend to sell it, or you want to find some kind of investment, having clearly increasing profits is something that you will want to achieve. Stable or, worse, decreasing profits are not going to help you achieve your ultimate goals, and eventually, this will mean that you have to make cuts within your business or even close it altogether.
Having the proper tech tools that operate together can help to enhance efficiency and productivity. It enables team members to work more effectively by automating numerous manual activities and connecting data throughout the company.
Not only will it make the work easier, but it will show your team that, when you’re implementing these changes, you are thinking of them and their comfort levels too. This will ensure loyalty and, again, more productivity.