Digital Transformation Importance In Today’s Business World

1. Get started Open in app Digital Transformation Importance In Today’s Business World Follow Ajay Kapoor Nov 3 · 8 min read It’s no surprise that digital transformation has set the agenda for almost every corporation. With more and more companies accepting that digitization is unavoidable, spending on research and development of new technologies gain steam across all industry verticals.

2. As research points out, digital transformation is about implementing new technologies and transforming their business models. According to IDC, by the end of 2021, almost three-quarters (72 percent) of worldwide companies will be embracing some form of digital business transformation. Nevertheless, some companies remain skeptical about the need for digital transformation. According to Gartner’s estimates, only 10% of CIOs are ready for this transition even though it is already at their doorstep. In 2022, the world’s leading economies are expected to spend a whopping 1.78 trillion dollars on digital transformation projects! Plus, that number is projected to grow by almost 200 billion U-S between 2020–2023- accounting for some imposing 몭gures indeed! Indeed, if you are still in doubt about whether you need to embark on a digital transformation journey or not, here are the main reasons why you should do it (digital transformation importance).

3. Why is Digital Transformation Important? Well, it’s not rocket science to understand that digital transformation is an inevitable process that all companies have to go through. Ignoring this trend is losing ground in the competition and giving up on potential opportunities for further growth. A McKinsey study reports that companies that adopt digital strategies outperform comparatively with 75% higher returns on assets. Besides, The Covid-19 outbreak has accelerated the digitization of customer interactions by 3 years in North America!

4. Still not persuaded? Well, here are other reasons why digital transformation should be a priority for your organization: Benefits of Digital Transformation for Businesses Let’s breakdown some of the points describing digital transformation bene몭ts: 1. Enhanced data collection and analysis To o몭er relevant products and services, businesses need to understand their customers: what they like, where they live, their income levels, etc. They also need to understand how people search for their goods and services on the web, from which social media channels have a bigger reach etc. In order to get this knowledge, companies need to: a) Collect, organize and analyze data.

5. a) Collect, organize and analyze data. b) Find the right data-collection tools that would meet their needs. c) Create training for employees who will be handling/processing the data. Having access to data from various sources, including social media, websites, apps, IoT, public data, etc., can be a treasure chest for companies. It is invaluable to gather all this information and analyze it to extract valuable insights to improve customer experience or boost sales. For instance, by utilizing digital marketing bene몭ts & real-time data analytics, online retailers can optimize their supply chain and provide customers with relevant recommendations based on their buying habits. 2. Greater resource management Digital transformation also enables businesses to manage their resources better, whether it is employees or budget. There are several bene몭ts of digital transformation in the area of resource management:

6. a) It reshapes internal communication with end-to-end transparency and employee empowerment. b) By providing real-time access to all information (몭nancials, resources, etc.) enables employees to make more informed decisions. c) In the era of hyper-connectivity and always-on availability, businesses can easily 몭nd top talent without limits by utilizing freelancers or 몭exible work models. d) With AI taking over repeatable tasks, employees can focus on their core competencies and achieve work-life balance. Being able to aggregate and seamlessly manage all company resources is another bene몭t of digital transformation. Companies can allocate their workforce more e몭ciently than ever by focusing only on high-value tasks by having complete access to real-time data. For instance, automotive manufacturers can now optimize the design process to reduce time to market by using intelligent automation solutions. 3. Improved customer experience As companies can gather more data about their customers and use it e몭ciently, they can deliver personalized content and thus improve the overall customer experience. For instance, by leveraging customer relationship management (CRM) technologies & chatbot development services insurance companies can now provide relevant information depending on their life stage, interests, hobbies, etc. Besides, a digital transformation company can also help you identify and prioritize your customers and thus improve their experience from initial interactions until after-sales. 4. Data-driven customer insights Companies are better able to use their customer information when they have access to more data. By leveraging new technologies that provide businesses with relevant insights about their customers, they can understand them more profoundly and make intelligent

7. business decisions based on facts rather than assumptions. When it comes to digital transformation, the CEOs of this country have some serious demands. A recent study found that 39% put this top priority for their CIOs. For instance, retailers can monitor customers’ online activities and predict their buying patterns to produce more accurate o몭ers by using customer analytics solutions. 5. Improved operational e몭ciency Digital transformation is all about improving the day-to-day operations of the company. Companies can streamline their processes and have a more e몭cient workforce by having complete information about their business, whether from internal data or external sources. For instance, thanks to the insights provided by real-time data analytics, banks can now prevent fraud before it happens, thus minimizing risks.

8. Image Source: Financesonline 6. Encourages digital culture (With improved collaboration) In order to e몭ectively implement digital transformation within an organization, everyone from the C-Suite executives to individual employees must understand and embrace this process. Teams can collaborate more e몭ciently by advocating for new technologies and strategies, thus creating a digital culture where everyone is on board with the transformation plan. For instance, by using social collaboration tools, employees worldwide can share content, exchange ideas, and discuss various industry-related topics better than using di몭erent communication channels. 7. Increased customer loyalty

9. Companies can increase customer loyalty by improving their customers’ experience through better communication and personalized interactions (e.g., targeted o몭ers). For instance, by using new technologies to better understand their customers’ needs, retailers can now deliver more relevant o몭ers while encouraging online shoppers to make additional purchases. 8. Digital transformation makes organizations more agile and competitive Companies that adopt new technologies and strategies (e.g., CRM, social collaboration tools, etc.) become more agile and better able to cope with today’s constantly changing business environment. In addition, when organizations have access to complete information about their company’s performance, they can use that data to benchmark themselves against other organizations in the same industry. For instance, by using customer relationship management solutions, insurance companies can now monitor their business performance down to individual agents, thus identifying poor performers and rewarding successful ones. 9. Improved return on investment (ROI) Countless business cases prove how an improved ROI is one of the biggest bene몭ts companies look for when implementing digital transformation. For instance, digital marketing uses a lot of data and analytics, which allow companies to measure their marketing results down to the last dollar. In turn, these technologies have allowed online retailers to cut down on spending while still increasing sales through more e몭ective product recommendations.

10. still increasing sales through more e몭ective product recommendations. 10. Increased 몭exibility and scalability By having access to complete information about their company, whether from internal data or external sources, businesses can make changes and add new capabilities without too much hassle (e.g., introducing a new product). For instance, by using comprehensive customer relationship management solutions, companies can now monitor and grow their business worldwide while still providing the type of personalized service that their customers expect. 11. Improved customer retention rates Companies can increase customer loyalty by o몭ering them an improved experience through better communication and more personalized interactions (e.g., targeted o몭ers). For instance, by using social collaboration tools to monitor their business performance down to every single agent, insurance companies can identify poor performers and reward successful ones, thus improving customer retention rates.

11. Wrapping Up! As you can see, digital transformation o몭ers numerous bene몭ts to organizations. To create a successful business model, companies have to move away from the traditional ways of doing things and embrace new technologies to help them achieve their goals. By collaborating more e몭ciently within their teams, ensuring that everyone is on board with the transformation plan, and having access to relevant information, companies become more agile and better equipped to face the challenges of today’s constantly evolving business environment. In fact, a digital transformation consulting company can help your business become better by providing you with the resources and know-how you will need to build a robust digital transformation strategy. FAQs Q1: What is digital transformation? A1: Digital Transformation, also known as Digitization or Industrial Revolution 4.0, is the process of changing a business model to deliver more relevant experiences to customers. Q2: Why is digital transformation important in business? A2: Digital transformation importance is related to companies’ access to more information than ever before. Information can decrease costs, increase productivity, improve loyalty and provide a better experience for customers. Q3: Which companies provide the best digital transformation services in India? A3: There are numerous Digital Transformation Companies in India that can provide you with the digital transformation services your business needs to get started. Some of them include: PixelCrayons

12. ValueCoders Promatics Technologies ValueLabs InfoVision Labs Q4: How much does digital transformation cost? A4: Digital Transformation services cost depends on several factors, such as the current state of your IT infrastructure and the speci몭c needs of your business. On average, though, a digital transformation project can cost anywhere from $50000 to $500000. Get an email whenever Ajay Kapoor publishes. Subscribe Digital Digital Transformation Business Business Development WRITTEN BY Ajay Kapoor Follow Hey, I’m Ajay, a tech blogger working with PixelCrayons who loves to share his extensive tech-related knowledge with like-minded people. DataDrivenInvestor Follow empowerment through data, knowledge, and expertise. subscribe to DDIntel at https://ddintel.datadriveninvestor.com

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