According to Mckinsey & Co report published on October 5, 2020, the present worldwide pandemic has caused 58 % of customer interactions to become digital, up from 36 % the prior year. The process of employing digital technology to build new or adapt current to business processes, culture, and customer experiences to satisfy changing business and market requirements is known as digital transformation. Moving away from the traditional data siloes to a more connected coordinated, and transparent business process is the backbone of digital transformation.
What Is the Purpose of Digital Transformation?
- It helps to completely change the end-to-end operations by adopting new SaaS, PaaS, or iPaaS solutions that support the latest digital processes and workflow.
- Assists organizations in transitioning from project or product-centric to customer-centric organizations.
- The transition’s financial benefits and improved market share are tangible and measurable.
- It creates many opportunities for consultants, service providers, and cutting-edge software to aid organizations in meeting their digital transformation needs, as it cannot be managed only by the firm.
How Does Digital Transformation Benefit Your Business?
Optimize Business Operations
Using cutting-edge business software aids in automating many manual business chores and workflows, resulting in a smooth, optimized business process that keeps employees on track with every single business activity in real-time.
Boost Employee Productivity
Digital transformation effectively merges siloed data, enabling the employees to view all the business processes on one single plane of truth; with this transparency, employees can spend less time following up with their managers or subordinates or doing mundane manual tasks. Employees have extra time on their hands to focus their efforts on growth, productivity, and innovation while reducing costs.
Develop Useful Market Insights
Using cutting-edge software and technologies enables businesses to derive valuable insights from the treasure trove of data generated by all devices such as mobile, laptops, Internet of Things, etc. These insights enable businesses to anticipate market needs that would have been difficult to identify otherwise.
Things To Think About Before Starting the Digital Transformation Process
Digital transformation is exceptionally tricky, and the chances of failure are very high. Hence, businesses must weigh all the pros and cons before implementing these changes and not just transforming for the sake of transformation.
Since it involves a significant modification from the existing long-standing processes, businesses have to think hard about how the change will add value to their employee, business processes, and customers and then acquire the necessary help and knowledge base to proceed with the transformation.
Even those who have successfully implemented new initiatives might experience a slowdown due to a lack of a well-defined strategy, ever-changing customer needs, lack of organizational change management, a skilled IT team, and many other obstacles. Therefore, it is necessary to constantly reevaluate and optimize the digital transformation by taking help from experienced consultants or third-party service providers.
Any business transformation can be daunting and more so digital transformation since it involves changing how the entire business operates. Still, we must also keep in mind the immense opportunities it provides to achieve the business goals and objectives that bridge the gap between the baseline and the target transformational goals.