5 Immense Benefits of Digital Transformation for your organization
Tags: Digital Transformation, Erp Software Solutions, Portfolio Management, Business Strategy, Digital Innovation

Many business promoters came into 2020 with digital transformation still on their to-do lists. Sure, they were working on digital transformation…but, at their own pace.

Then, the pandemic hit. Digital innovation transformation quickly went from a “nice to have” to a necessity. Maximum businesses were bound to adapt to a remote work environment. Others quickly rushed to set up e-Commerce websites so they could continue selling products.

The problem is many businesses are just “plugging the leaks” so to speak. They are addressing the digital issues needed to survive, but aren’t completing a total digital transformation. They’re left with a patchwork of analog and digital tools/processes that don’t quite work together.

Now, I get it. This has been a strange and difficult year. Many businesses have no choice but to go into survival mode and only implement the digital tools they need to survive.

My message to you: Once things gets more stable, don’t stop. Keep the digital transformation moving.

Why is this so important?

Not only will it better prepare you for other unforeseen challenges, a total digital transformation delivers all types of advantages. In this article, we’ll explore some of the biggest benefits of digital transformation.

1. Improved efficiency

Let me ask you a question: What slows your business down? What roadblocks exist in your current processes that harm efficiency?

For some, it’s manual data entry. Their systems don’t communicate with each other, so they must manually enter data into different areas.

For others, it’s a process bottleneck. One process goes through a single department, and creates a bottleneck. For instance, reporting still goes through the IT department in many businesses, creating delays.

I could go on, as there are any number of areas that could slow a business down. The good news: Digital transformation eliminates many of these bottlenecks. When you replace legacy processes with automated workflows, and truly examine your current processes, you reduce friction in your business.

2. Improved decision making

Over the past few years, we’ve seen a data explosion. As a business, you have access to more data than ever before, and data volumes are only increasing.

However, very few businesses actually capitalize on this data. Many lack the tools and processes needed to turn it into meaningful management information.

This is where a digitally-driven company has the upper hand. Using modern BI tools, they can take this flow of data and gain insights immediately. This lets them react far faster (and more accurately) than businesses who lack these capabilities.

3. Improved agility

COVID-19 gave the business world a surprise agility test. Many were left scrambling. They didn’t have the tools/processes in place to adapt quickly.

For other businesses, the move to remote work was relatively seamless. They already had the digital tools and processes needed to work from anywhere. Or, they had the no-code/low-code tools to create the necessary web applications on the fly. Here’s one such example of a company who adapted quickly thanks to digital transformation.

In my opinion, agility is one of the most important benefit of digital transformation. The ability to adapt to changes on the fly or deliver needed solutions in a matter of days is a huge competitive advantage.

4. Improved customer satisfaction

With the rise of mobile and technology advancements, we’ve seen customer expectations change. The modern customer expects simplicity.

What happens if you can’t provide the simplicity they expect? What happens if you make them jump through hoops? Or what happens when you provide an outdated experience? They’ll likely move on.

Improving the customer experience is one of the big goals of digital transformation. The great part: When done correctly, you’ll see improvements in two different areas.

Digital transformation improves the customer experience

Offering digital tools to your customers will make their lives easier. It makes your business more attractive to potential customers. But, most importantly, it keeps you relevant. Businesses that offer a clunky, outdated experience will have trouble competing with those that stay up to date with modern technology.

Digital transformation provides more customer insight

Do you notice how some companies these days seem to know what you want before you ask them? Or, their products are created in such a way that it seems like they’re reading your mind? It’s not magic, it’s analytics. These companies are taking advantage of digital technologies to better understand their prospects and customers. They’re gathering insights from customer interactions and using that data to constantly improve.

5. Improved profitability

Finally, what happens when you work more efficiently, make better decisions, increase agility, and improve your customer’s perception of your business? How will that impact your bottom line?

The fact is, digital transformation will transform your entire business. As explained below, when done correctly, it will significantly improve your overall profitability.

Summary

While the list could certainly be longer, these are just 5 benefits of digital transformation. Would you add anything to this list? If you would like to add anything to this list, I’d love to hear it. Feel free to share in the comments.