Exploring the Benefits of Digital Transformation in Business

Organizations of several industries are modernizing their legacy processes and started replicating their existing services in a digital format. Same time digital transformation is not as simple as we think. A better understanding of technology and its advancements is crucial for any business.

We will have a detailed study about digital transformation and also the advantages of digitization in business. We also need to know how all industries are coping with the transformation of the business to the cloud.

What is digital transformation?

Digital transformation is a unification of digital technology into every business operation that results in determining how the business should be operated and how to deliver products or services to customers in an effective way.

By understanding the significance of digital transformation, many businesses have started converting all ink-on-paper records to digital files. Let us have a short look at how popular is digital transformation in businesses.

• 70% of organizations are working on a digital transformation strategy.
• 55% of start-ups have already adopted the online business model.
• Even during a pandemic, 75% of employees could get placed in tech jobs.
• 40% of spending made by leading corporates is done on technology related to digital transformation.
• 45% of respondents agreed that digital transformation has led to operational efficiency.
• 15% of corporate agencies have already started using AI and ML in their business operations.
• On a large scale, 25% of companies have adopted cloud-distributed technology worldwide.

These stats are more than enough to prove that every business is turning towards digitization as they have experienced the potential benefits.

Intangible benefits of digital transformation in business

The entire way of business operation can be simplified by escalating the business in digital form. If you are still leading your business in the traditional method then it is the right time to go for a profitable change. Still, are you not convinced?

Go through all the real benefits of digital transformation that will make you understand how important it is to go for a perfect business transformation.

1. Enhanced customer experience

Digital transformation in business offers a seamless and intuitive experience to customers. From using emails to user portals several communication channels will let businesses be connected with their customers all the time.

Consumers can have more choices with a wide range of products. They can compare prices with other brands and can choose the economical one. Many companies have developed exclusive mobile apps for their customers to order products online and this gives additional flexibility for them to check and buy products.

2. Increases operational efficiency

All messy manual processes can be consolidated and can reduce overhead costs by synchronizing back-end systems. The entire delivery process will be automated and there will not be any human errors that usually occur while delivering products. This will reduce unwanted expenses like returns and refunds.

Entrepreneurs can use the right tech tool to streamline their operations and can integrate multiple data with a single platform. Users can automate manual tasks and reduce working time by increasing operational efficiency.

3. Drives data-driven insights

Understanding customers is a crucial aspect for any business that will help in customer retention and also customer acquisition. But for this, you need to collect all customer data and should study their behavior, and offer personalized service to them.

With the digitalization of business, you can track all metrics that will give a clear insight into how well your business is performing and which product has gained much customer attention, and many more. This will help in promoting the right brand to the right target audience and gain better returns.

4. Improves employee experience

Along with the organization, employees need to upgrade their digital skills to get adopted to digital transformation. For this, any organization needs to provide enough training to their employee on handling technologies and computerized documents.

Companies should make employees understand the importance of digital transformation. Improving the digital intelligence of employees will encourage their work efficiency and will build an excellent working ambiance. If an employee is satisfied with his workstation, he will never get the idea of shifting his job and he will become an asset to his organization.

5. Promotes agility and innovation

Instant and continuous development can be experienced with the help of technology. Users can achieve specific outcomes through an innovative application that can simplify manual work and can increase productivity.

With better agility, users can keep their customers engaged and also can motivate their employees to work even better to reach their business goal within the time frame. This will reduce all their expenses and will give better returns.

6. Reach market easily

All your customers are available online and if you want to reach them then you have no other option than going online. Several channels will market your products easily and will get better visibility. One such channel is social media, where you can run your campaigns and reach your audience.

You can use any of the digital marketing tools to gain brand visibility. For this, you need to have a perfect website about your company and products. Customers will first reach your website to know about you and then will proceed in buying your product.

Potential benefits of digital transformation in major sectors

Apart from business, there are many other sectors where workflow automation and advanced processing have become more essential. Let us identify the advantages of digitization in various sector

Benefits of digital transformation in healthcare

• Optimized workflow can be experienced as the digital transformation will eliminate paperwork and gives convenient access to any particular patient record.
• Patients can communicate with their respective doctors through the chat option and can update their health recovery.
• Electronic medical records will let the platform to have on-demand sharing of patient records with specialists and laboratories.
• Patients can track and manage their health records and can have insights into their health metrics.
• Convenient appointment scheduling with the specialist is an added advantage that will let patients fix their appointment at their convenient timing.

Benefits of digital transformation in manufacturing

• Automated systems will avoid manual errors and can excel in all repetitive processes that manufacturing involves and leading to an increase in productivity and efficiency.
• Advanced technologies like IoT sensors can easily detect machine health in real-time and can alarm the manufacturer to take necessary repairs and this will reduce the operational cost.
• Ongoing labor shortages can be resolved with the help of automation systems. Many corporates started using robots to carry out tedious tasks.
• Cloud data platforms assure supply chain resilience that gives more flexibility to all manufacturing operations.
• Smart manufacturing includes all leading technologies like IoT, machine learning, AI, and many more and improves quality production, and offers a better inventory program.

Benefits of digital transformation in banking

• Better customer experience is assured as banks use online assistants and chatbots to get in touch with customers 24/7.
• Real-time data analysis done with the help of IoT will offer better customization to all individual customers.
• Secured data transaction is attained by integrating blockchain technology with the finance sector.
• Mobile banking applications simplify the day-to-day operation of customers as they get to know their statements and can use them to transfer and receive payments 24/7.
• Automated compliance features will let banks use fewer resources for auditing and can keep updating customers regarding compliance updates to customers through the app.

Benefits of digital transformation in education

• Managing admission is made simple with the help of the advanced application. With a unified online registration system, the enrolment process is simplified.
• Interactive teaching methods will help students to understand the course material in a better way and will improve the learning outcomes.
• E-learning system gives faster access to study materials and students can check their grades online and can track their attendance.
• Smart classrooms give a better offline learning experience as it allows teachers to use smart projectors, computers, and the internet to search for information in real time.

Challenges of digital transformation in business

In each stage of digital transformation, many challenges need to be confronted to achieve the business goal. It is very essential to identify those challenges that will become a hindrance to our business.

Disconnected decision-making – though we may be future-ready to meet all objectives of our business, every department will make decisions and all decisions will be disconnected from one other. This will restrict the development process and impedes technology involvement within the organization.

Resistance to adopting new technologies – from C-level executives to employees, organization faces lots of resistance adopting to new technologies. Employees may feel uncertain about their job assurance. One needs to address these issues while planning for digital transformation.

Insufficient budget for digital transformation – financial constraint is one of the major challenges that any business faces especially during this pandemic. More investment is needed for digital solutions and we need to make financial arrangements for developing exclusive applications.

Digital skill gap – the entire organization needs to possess some digital skill set. Even a non-technical person needs to have basic digital knowledge in handling the platform or the application exclusively designed for simplifying the business operation.

Online security threats – rushing for digital solutions are also quite threatening for any organization as there are lots of security threats ready to attack the data of any business. While using third-party platforms we need to be more cautious about security as we need to protect our customer data from hackers.

Transform your organization and workforce with Appkodes

Hope you have gained enough knowledge about the advantages of digitization in business. It is very clear that digital transformation is not about technology and its innovation but it involves people in business. More attention is needed during the transformation process. You may need expert help in escalating your business to the next level.

Get in touch with our Appkodes team who can guide you in building your digital empire and establishing your market world-side.