Digital Transformation: What, Why and Benefits
What is digital transformation?
Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. (Source: The Enterprisers Project). Of the myriad of definitions, I found the above one simple and easy to understand.
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The process of digital transformation involves cultural, technology, people, business model changes to achieve 100% success. Remember, Digital Transformation is not something you can apply to a few areas of your business but a long-haul that will impact every area of your business.
Some of the objectives that have to be aligned with the digital transformation strategy for success are:
- Improving speed to market with new products and services
- Accelerating employee productivity
- Increasing responsiveness to customer requests
- Gaining more insights into individual customers for personalized products and services and
- Better customer service and customer engagement for delivering an unparalleled customer experience
What makes the Digital Transformation mandate for every organization?
Growing customer demands, changing customer behaviors and need for instant solutions to problems (now and in the future) are some of the reasons why every organization should invest in digital transformation programs. In short, the Digital transformation strategy starts with the customer and ends with the customer.
According to Edelman Digital, more than half of consumers expect a response from customer service within an hour, even on weekends.
Remember, the presence of many market leaders that haven’t adopted the emerging technologies have declined since 2005 as organizations utilizing advanced digital initiatives have started feeding the appetite of customers with innovative techniques.
Moreover, today top companies have already started to transform their business landscape with the digital initiative to sustain in the market and accelerate.
According to a Smart Insights Research Study, over a third (34%) of businesses already have a transformation program in place, which is an increase from the 30% who last year had a program set up. On top of this, 31% are looking to launch a digital transformation program imminently, showing the number of companies realizing the importance of such a program is on the increase.
The chart below will help you identify that many companies have already started to adopt digital transformation.
Digital Transformation Benefits for Organizations
The 13 key benefits of digital transformation are:
- Transformed Customer Experience
- Data-driven insights
- Seamless collaboration across departments
- Increased agility & innovation
- Updated skillsets & knowledge
- Transformed digital culture
- Consolidates process and operations
- Reduced costs
- New products/services
- Accurate market segmentation
- Increased agility and innovation
- Keeping pace with the competition
- Improve productivity, RoI
Digital transformation has become a mandate for businesses today and companies embracing the new norm are experiencing better results. Your competitors are there. Are you?
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