Business is serious, right? We have to have a strategy, objectives and KPIs. And that’s just the beginning... We could go on forever with this stuff. Digital transformation is the latest buzzword in business circles. The challenge is that most people don’t know what it means, and those who do tend to use it as an excuse for everything from organizational change to a new HR system.
A recent survey showed that only 9% of businesses are digitally mature – but there are also many organisations that are not using digital solutions at all, or using them ineffectively. So if you’re not sure whether your company has ‘gone digital’ or not, read on to understand why digital transformation is so important, and how you can optimise your organisation to become more efficient with technology…
What does digital transformation mean for business?
Digital transformation is the process by which businesses upgrade their systems and operations to take advantage of new technologies like machine learning, blockchain, and big data. The result is that companies can use technology to increase productivity and make business processes more efficient. In doing so, companies can remain competitive and keep customers happy by providing better goods and services at more affordable prices, and with greater ease and speed.
That’s why digital transformation is important – without it, your business can’t take advantage of the latest technologies that bring more value, efficiency, and convenience to your customers and employees.
Why is digital transformation important?
A business that is not digital is a business that is not relevant. In today’s world, everything is digital, and your customers expect to be able to interact with you digitally. They don’t want to have to pick up the phone or drive to your office – and they certainly don’t want to wait in line at the bank! Digital transformation is about making your business ready for this new reality. It means making sure that you have the infrastructure, processes, and culture to answer customers’ digital needs in a timely and cost-effective way.
How does a business go digital?
Before a business can transform into a “digital” one, there are a few prerequisites to check off the list. First, it has to decide which digital technologies it wants to invest in. Then, it has to decide how and where it will use them. Finally, it has to make sure that its employees are trained to use these tools effectively. This process can be daunting, but if you’re serious about making your business more efficient, it’s worth dedicating some time and resources to making sure the transition goes smoothly.
Here are the key areas of your business where you could benefit from digital transformation: Customer Experience - Your customers expect a great experience when they interact with your brand, and they expect that experience to be easy and convenient. This goes beyond the products and services you offer; it includes how your customers engage with you. Digital transformation can help you provide an engaging and consistent experience across all channels, including social media and your website.
3 ways digital transformation benefits your business
Speed - Digital transformation makes business processes happen faster. The customer doesn’t have to wait for a physical delivery or to speak to a live representative. They can get what they need and move on with their day. This is especially important when your customers are trying to solve a problem or complete a critical task. Cost - While speed is important, some processes also need to happen at a more measured pace. Digital transformation makes it possible to reduce the cost of those processes while maintaining accuracy and quality.
This can reduce overall costs, and in some cases, can reduce the cost of doing business for your customers as well. Accessibility - When you use digital transformation to provide services or products online, or to make your customer service an online experience, you give your customers more access to those things. This might mean an expanded reach for your product or service, or it might mean that people who couldn’t previously get those things now can.
2 ways digital transformation helps employees
Productivity - When employees are able to spend more of their day doing what they’re good at – and less of their day typing on a computer or dealing with other aspects of the business that are easier to automate. They can work more efficiently, and that means they can get more done. Engagement - It’s easier to engage your employees when they’re working in an environment that is suited to their strengths and better meets their needs. When employees can use technology to do their jobs more effectively, they are more engaged in their work, which means they are more productive, creative, and happy.
1 way digital transformation changes your company’s culture
A business’ culture is the sum of all the people who work there. It’s the way they communicate, the way they approach problems, and the way they treat each other. When you make significant improvements to your digital capabilities, you are also making significant cultural changes. Your employees will approach the way they work differently, and they will interact with each other in new ways, too.
1 way it changes your company’s operations
Operations encompass everything from personnel to finance to supply chain management. When you make changes to boost your digital capabilities, you are also making changes to these operations. For example, you might start using technology to help manage your supply chain and inventory more effectively.
Digital transformation is key to any business – and it’s never been more important than it is today. Consumers expect businesses to operate digitally. They want to be able to access products and services 24/7. They want to be able to do so easily and on their terms. This means that businesses must be equipped to meet this demand through digital channels. This includes having an online presence, such as a website, online store, or social media channel, as well as offering customers self-service options like online chat, interactive voice response (IVR), and self-service kiosks.