The advent of digital technologies has drastically improved the way we communicate, collaborate, and interact today – and now it is reaching our workplaces at an exponential rate. Here we will talk about how digitalization in business can help you scale effectively.
Table of Content:
- What is Digital Transformation?
- How is Digitalization changing the way businesses work?
- Benefits of digitalization
- How to successfully implement digitalization?
When businesses are concerned, the gigantic importance of digital transformation can be indicated when John Chambers, former Executive of Cisco, said:
“At least 40% of all businesses will die in the next 10 years if they don’t figure out how to change their entire company to accommodate new technologies.”
Clearly, digitalization in business is critical for the survival of most businesses today – and it is not just because of the dynamism that it gives to an organization by beefing up its operational efficiency, but due to its ability to let an organization act proactively by taking the right decision as well.
If your company is still unaware of the power of digitalization, you’re missing out on something big! Here we will be discussing the power of digital transformation and how can it benefit your business – but first let us understand exactly what it is.
What is Digital Transformation?
Digital transformation is the process of integrating digital technologies into all aspects of a business to cope up with the market needs and changing business requirements.
This process seeks to increase the efficiency of business operations and customer relations. In order to achieve these goals, businesses need to update their systems, processes, and culture.
To put it simply, digital transformation demands reinvention of most areas within an organization. Since it deals primarily with people, it sets off empowering the employees with updated tools and methodologies to create data-driven strategies and innovation.
Here are some vital statistics to further understand the impact of digital transformation on businesses:
- 27% of senior executives rate digital transformation as now being ‘a matter of survival’. (Source)
- 87% of companies think digital will disrupt their industry, but only 44% are prepared for potential digital disruption. (Source)
- 55% of startups have already adopted a digital business strategy. (Source)
Let’s look at what Uber did…
A perfect example of digital transformation is Uber’s rapid success and subsequent disruption. The stress of waiting for an empty taxi and hailing it down, unaware of the fare charged by the driver until the ride ended and the absence of a feedback mechanism – these were all addressed by Uber.
The company used smartphone and GPS technology to connect the cab drivers via its network and impacted taxis, car rental agencies, car manufacturers, and even bike companies in a big way.
It forced companies like these to incorporate similar technology into their businesses.
How is digitalization changing the way businesses work?
As a society, we are driven greatly by technology. Whether it’s agriculture, banking, or business – almost every sector is embracing digitalization. And it’s growing day-by-day, especially in the world of businesses.
Here are some of the impacts of digitalization in business:
Enabled businesses with instant communication
Recent developments in information and communication technologies have made it possible for organizations to increase their employees’ productivity by providing them with new ways of working together.
Modern technology allows marketers to gain an immense amount of information about their target group.
Compelled to innovate
Innovation is the key and without it, the system becomes stagnant and dull. Digitalization has drawn the need for businesses to constantly innovate.
Plan targeted market strategies
With customer data in hand, businesses can plan the right marketing strategies. It enables them to get even more leads, and also increases the reach of their word.
Manage large data
With cloud computing technologies, businesses are managing large amounts of data without any hassle.
Abrogating evolving technologies and platforms can help you understand your customer journey and interpret relevant data about your customers.
See how the implementation of digitalization by big companies helped them grow exponentially throughout the years:
Benefits of digitalization in business
1. Simplifies the operational process
In today’s ultra-competitive and highly-regulated business environment, companies with out-dated and difficult-to-access documentation can face numerous dangers. This can eventually pose a negative threat to that business.
The operational process is indeed time-consuming, by using new-age technology of digitalization such as communication, data storage, and analytics, your business can become more adaptable and collaborative which in turn can maximize results.
2. Improve customer experience
If your goal is to provide better customer experience or to improve communication with your customers, then digitalization can be the best option.
It creates a closer bond between you and your customers by adding value for them. Innovative sales channels like social media networks play a pivotal role in it. Just developing a website, allows your company to be in the market 24 hours a day, 7 days a week.
3. Reduce operational costs
It also enables businesses to manage costs efficiently and have more effective control of production and sales processes. Digitalization also allows companies to create better business models and increase revenue sources.
4. Increase employee productivity
Business digitalization allows you to better gauge the production process so that you can analyze each step and take effects accordingly. The digitalization of documents and the disappearance of space and time barriers helps in carefully optimizing resources to streamline the production process.
How can you successfully implement digitalization?
To successfully digitally transform your organization is not a goal but a path to refine and improve your business’ operating system and management which will eventually lead to more productivity. It’s not an option anymore, but a necessity for your company to be successful.
The market is constantly evolving with rapid innovation in technologies and you need to keep pace with that. There is also a change in consumers’ habits, needs, desires, and communication. If you fail to understand this all the money that you step on the best technologies won’t make any difference to your organization.
The three basic pillars of digital transformation are: people, automated information management, and digital communication. If you have aced all these pillars, then you are on the right track.
Where to start? Carry out a thorough analysis of the current system of your company (basically where you are slowing down)and see how technology can impact it in a positive way!
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