Digital transformation is a business buzzword that is thrown around a lot these days, but what does it really mean?
The concept is basically about using new technologies to transform how you operate—in other words – optimizing business processes by leveraging new technologies like Artificial Intelligence (AI), Machine Learning (ML), big data analytics, blockchain and cloud computing. As more and more businesses have embraced technology, the Internet of Things (IoT), and big data, the way in which business owners conduct business has evolved significantly over time.
Digital transformation is not just about using technology for the sake of using technology—it is about using technology to improve your business operations and your customers’ experiences. This can lead to better profits or just create new opportunities.
To learn more about how digital transformation can benefit your business, check out these top five benefits of digital transformation for businesses.
Let’s get started!
1. Improve customer experience
Customer experience depends largely on technology.
As more and more businesses move to digital channels, you can expect an increase in your company’s overall customer experience. With improved technology comes better data collection and faster ways to process information.
A good example is a call center: with digital-only contact points such as live chat, you can improve service times (and therefore customer satisfaction) by digitally tracking incoming chats and offering real-time responses. Whether they are shopping online or trying to reach an agent via live chat, customers demand immediate access to information and personalized service.
You might want to talk about examples from companies like Apple or Netflix where they made their digital strategy an integral part of their marketing efforts, and this is what ultimately resulted in successful products and services.
Focus on improving customer experience through personalized product recommendations based on past purchases to streamlining internal processes using tools like predictive analytics or machine-learning algorithms.
2. Increase work efficiency
By integrating multiple digital platforms into a cohesive workflow, businesses are able to cut costs and streamline operations. Moreover, thanks to intelligent analytics tools and detailed reports, digital transformation also helps companies to maintain accurate inventory levels. Another benefit of digital transformation is increased sales.
Companies using digital solutions tend to grow faster than those who do not—by as much as 18 percent, according to recent research. Digital technology is helping brands connect with consumers in new ways, making it easier than ever before for people to find exactly what they are looking for online.
What’s more, digital platforms allow businesses to collect data about their customers’ behavior and use that information to tailor future marketing campaigns based on real results rather than assumptions or guesses.
3. Increase agility and innovation
Agile organizations are able to stay ahead in a world that demands speed and agility. Innovation is an important part of every business, and agile platforms allow companies to innovate while staying on track with their mission. That is why so many businesses are looking into digital transformation as a way to stay competitive.
Digital transformation can provide an excellent return on investment, which means it is an attractive solution for any company seeking to boost profits in these volatile economic times. The rise of mobile technology has brought new opportunities for developers, but it also requires new ways of thinking about software creation.
As mobile devices have become increasingly powerful, developers have begun creating apps that rival desktop software in terms of power and flexibility. One example is Adobe Photoshop Touch: despite its name, it is essentially a full-featured version of Photoshop available on iPad.
4. Increase profitability and opportunities
Global digital transformation is a huge profit opportunity, and many companies have already realized it. According to a survey by Accenture, 92% of respondents said they had seen an increase in profitability due to digital transformation. Without it, many are risking falling behind their competitors who are finding ways to harness technology in new and innovative ways to improve customer experiences and increase profits.
Many smaller companies fail because they do not invest enough in new technologies or processes. Companies that use tools like mobile apps and social media effectively can be much more scalable than those that don’t—so it’s worth looking into even if you aren’t yet profitable.
So if you have decided your business needs to be more digital, where do you start?
Whether you are creating a new digital experience from scratch or making improvements to an existing one, digital transformation is a broad process that requires input from various departments within your company. People in marketing, sales, IT and development should all play a role—and can make it even easier if they work together.
For example, developers working with designers on software used by customers will be able to streamline processes. They will help build intuitive tools that are easy to use while designing products that give customers what they want—faster than ever before.
5. Derive data-driven insights with software asset management tools
Last but not least, software asset management tools enable your organization to do more with less. They allow you to derive data-driven insights that inform your decision-making, automate processes, and generally help with everything from compliance to cost control.
It is important to recognize that your digital transformation is not a one-time project but an ongoing series of improvements and changes. Any tools you employ need to be flexible enough to adapt as technology evolves.
You will want software asset management tools that grow along with your company or can be expanded later.
If you want to succeed, it is time to evolve, and that starts with digital transformation. It will change everything, including how you do business, interact with clients and improve daily productivity. Plus, with data insights at your fingertips, innovation and efficiency will be your new strengths.
Digital transformations have redefined success in many industries, from retail to healthcare to finance, so who’s to say it won’t help with your business?