07 May
What is Digital Transformation and why it is Important for Businesses?
Companies nowadays are heading towards growing digital. But what does digital mean? Everybody wants to adopt digital, but which way can we achieve that? For some businesses, going digital is all about technology. For others, it is a new way of engaging with customers, clients, and employees. And for the rest, it is a way of doing their business in a completely new way. Such varied perspectives will slip up as they have a lack of alignment and common vision, about where the business would lead. Business professionals must have a common and a clear understanding of what going digital means to them and especially, what it means to their business.
The use of digital technologies has a transformational effect on our economy and society. Such technologies are very much needful for the workforce and people’s lives are exponentially digitalized and connected, with computers and other electronics mediating many daily activities. To stay competitive in the business and economic environs, require new digital strategies and practices. But before you go for digital transformation, its very essential to understand what does it mean and how are the businesses going to benefit from it.
What is Digital Transformation?
It is an implementation of digital technologies into each area of business to build sustainable relationships and to meet the needs of their customers. It is the solution to the disruption of the work and also in response to the pandemic, most of the businesses ramped up their efforts to meet the global change. Digital transformation results in fundamental changes to
operating businesses and brings value to their customers. It is highly important to every business, from the small to the enterprise level. According to Dell, 80% of businesses accelerated their digital transformation programs in 2020.
In this new digital era, technology is not just a choice, but a business strategy must be interlaced into every part of an organization. Digital transformation can bring out better collaboration within and between the organizations, an improved version of customer engagement, higher employee productivity, and innovation, and more accurate data, all of which are essential for a business to grow. Digital capability is fundamental in the current competitive market. Since the technologies are rapidly changing and evolving and also with a huge competition outside, businesses need to transform their digital strategies.
Importance of digital transformation
For an organization to be successful, the adoption of digital strategies is a must that helps them to achieve their objectives and stay ahead in the race. Transforming digital technology has massive benefits:
1. Better collaboration
Digital transformation offers better opportunities to unite as leaders build it on digital congruence. Employees are becoming reliant on each other to meet the unending customer needs, intending to produce a wide variety of products and services that interests their customers. By providing the employees with the right set of tools, tailored as per their preference, interests, job roles will enable better collaboration. Employees can share the documents, files, and business-related materials across a common platform and have a quick chat on the project they are working on. When everyone is aligned to a common purpose, there is a smooth and seamless transition.
2. Central repository system
Digital transformation will integrate resources and data into a suite of tools for business. Rather than using the tools individually, it brings together all the software and databases into one place. Organizations have multiple business tools used by their employees. According to the article, the average number of applications used in a business in 2020 is 900. It integrates applications, databases, and software into one unit for business intelligence. Also, integration of the applications can help employees to use the applications smoothly avoiding context switching.
3. Make better and quick decisions
Companies have to deal with huge volumes of data than ever before. With proper analytical tools, data can be converted into valuable business insights, which are used to make informed decisions at a faster rate. These analytical tools are integrated into business operations leading to greater efficiency.
4. Improve customer experience
The customer experience plays a major role in the process of digital transformation. As the transformation initiatives arise from the pain points of the customer side of the business- so, all the customer needs are taken care of. Managing the customer expectations and optimizing the initiatives accordingly will lead to clear and tangible results for the business. Strategizing digital transformation as per the customer expectation forces companies to empathize, address, and understand all the touchpoints that will enhance customer satisfaction.
As per Gartner reports, around 81% of companies will be competing based on customer experience.
5. Improved productivity
Having the right set of tools and applications that work together will streamline the workflow and gives a smooth experience to the employees. Integrating the data throughout the organization and a personalized touch based on their job profile, location, preference will empower the team members to work efficiently and enhances productivity.
6. Increased profits
As the digital transformation enhance employee experience and improve productivity. Enhanced productivity drive profits. Companies that undergo digital transformation have got great profits.
Stats show that 80% of companies that have adopted digital transformation reported increased profits.
Time to Go digital
To stay ahead in the competition in the digital industry, it is very important to undergo digital transformation. But what goes into the process is planning and strategizing. Embracing the right digital technology will bring positive results and enable your business to innovate and thrive in an increasingly digital world.
Acuvate’s Mesh 3.0- digital workplace accelerator helps clients build a comprehensive digital workplace. The mesh helps in facilitating personalized rich experience, provides a central hub for breaking down the silos that an effective global network.
Poonam Chug is AVP - SaaS Strategy & Business. She has worked in various areas, right from designing and executing sales & account management strategies to reengineering digital workplace solutions. With her determined focus on our mission and progressive approach, she has achieved customer delight in the space of AI, Knowledge Mining, Content & Collaboration, Virtual Assistants, RPA and more. Backed with a deep understanding of customer needs and technology, she leads the SaaS business unit with an upshot of maximizing revenue while ensuring customer satisfaction.
Poonam Chug