Transformation is imperative for all humans and businesses. You can’t survive in this cut-throat world without evolving with changing times. The message is clear. Every expert, seminar, and panel emphasizes the importance of evolution and the need to accept technology.
A business that doesn’t transform will not remain relevant. Since this is the era of technology, businesses are going global. In this article, we’ll talk about digital transformation.
Let’s get started:
What is Digital Transformation?
It can be pretty difficult to explain digital transformation since the concept differs from business to business. In simple words, it can be defined as the process of utilizing the latest and changing digital technologies to modify existing processes or create new processes.
In addition to this, it also covers customer experiences and business culture. These changes are the need of the hour due to the changing scenario.
Digital transformation marks a rethinking of how a business uses people, processes, and technology to change or improve performance. Digital transformation needs reinvention and examination of most areas within a business, from its workflow to supply chain to employees.
It allows businesses to keep pace with the changing times and meet the demands of customers. Digital technology and tools are changing how we interact. It also has an impact on how we do business. People are moving from traditional methods of buying and selling to digital methods, and businesses that do not change with these changing times, will not be able to enjoy a good share of the market.
Drivers of Digital Transformation
Companies typically go this route to counter the possibility of disruption from startups and incumbents.
Uber can be a good example of this, The company hijacked the transportation or ridesharing sector forcing competitors including taxi companies and can rental providers to come up with a solution to survive the competition.
Given Uber’s major rise, many businesses incorporated a similar pattern into their service. You will find similar examples in other businesses as well.
One of the world’s largest companies, Amazon, can be a pretty good example as well. Many call it a digital transformation driver. The company took time to grow and faced many challenges in its journey towards success. But, on the way, it has forced many businesses – including small retail stores – to up their game and provide better products and services.
The Amazon effect left retailers fuming as they had to turn to algorithms and newer technologies to ensure they could meet the changing requirements of their buyers.
Amazon used the latest technology which forced retailers to do the same since they began to lose buyers due to competition.
How Easy Are Digital Transformations
Digital transformations are not easy at all. In fact, according to reports, the success rate of effort a business puts into digital transformations is pretty low – about 20 percent only.
These were the 2017 figures and the latest numbers show that digital transformations are only getting more difficult with each passing day. In fact, only about 16 percent of people think these efforts result in success.
A large number of businesses give up midway and most are not able to achieve the desired results largely because technology changes at a very rapid pace and they are not able to cope up.
The scenario is the same in almost all the industries, including tech-savvy industries like media, telecom, and high tech. The success rate doesn’t go beyond 26 percent, yet businesses are working on transforming because they know they will never be able to hit the bull’s eye otherwise.
Benefits of Digital Transformation
So, why are businesses still working on transforming despite the low success rate? Here are some reasons:
#1 Allows Businesses to Deliver a Better Experience to Customers
Technology can help businesses offer improved services to a customer. Consider payments, since they are handled online, there is no need for a customer to withdraw cash or write a check. They can make payments using PayPal or other such options. All that you need to do is to integrate a payment gateway so that users can choose how they wish to pay.
It’s all about realizing what your customers require and providing them just that. In many cases, businesses usually follow suit. This may work but if you want to stand out then you need to come up with your own creative ideas.
Cloud computing, for example, is a great technology and even big giants like Adobe now offer software like Photoshop in a subscription model that’s based on the cloud.
Similarly, PlayStation and XBox now have subscription models where players can stream games at a cheaper rate. This gives them an edge and now more sellers are jumping the bandwagon by offering similar models.
But, it isn’t only about offering new products. It’s about offering the best customer experience. Today’s customers consider a lot of factors when they judge a product. Customer service, for example, has to be excellent. Clients do not want to write emails or make phone calls. They want to get in touch with the agents over live chat since it’s faster and more reliable.
Businesses that offer this feature tend to enjoy more sales because buyers consider such businesses more trustworthy. This is why more and more websites are now transforming to incorporate the live chat feature.
#2 Makes Employees More Productive
This may sound a little confusing since the introduction of new technology can make it difficult for employees to adjust. It also leaves some employees obsolete, which is why businesses are always on the lookout for newer and better employees.
This forces employees to learn new skills and be prepared for the future. As a result, companies get to have employees who are more informed and excited about the latest technologies.
More skills allow employees to provide better results, thus increasing efficiency and productivity.
#3 Encourages New Culture
A digitised environment allows employees to adapt to the latest technology easily. Think about freelancing and flexible hours. More and more businesses are allowing employees to work from home at their own hours which offers great ease to employees.
This becomes a part of the culture that gives the business its identity. Google, for example, today is known as one of the most fun places to work at due to the culture.
Believe it or not, organizational culture can play a very important role in keeping people happy and motivated. Some reports suggest that people tomorrow will pay more attention to organizational policies and culture before they apply for a job.
#4 Improves The Process of Data Collection
Back in the day, businesses used to collect data manually by submitting forms and using other similar techniques.
The process was costly and full of risks. However, things are easier now as everything can be done online thanks to submission forms and social media platforms that allow businesses to reach a wide audience in no time and without having to spend a lot of money.
Online data collection is quite useful. Plus, businesses are able to get valuable data in the form of cookies that provides information on buyers and potential clients without them having to do anything. This makes the whole process easier.
Moreover, there are better and more reliable ways to analyze this data. There is no point in having data if you cannot analyze it properly. The latest tools and techniques make it possible to run multiple tests on data and get concrete results which businesses can use to make decisions.
There are a number of businesses that offer data collection and analysis services. This has opened new doors for startups since there is a huge demand for tools that can gather and study data.
One such tool is The WinPure Data Cleansing & Matching Software that makes sure the information you have is usable so that the results are correct and reliable.
Our award-winning software is suitable for all kinds of businesses and can help you save and make money. Call 855-WIN-0201 today to know more about how it can help your business go digital.
Digital Transformation: Conclusion
Digital transformation helps businesses make more profit by giving them a chance to introduce new products and services to a larger audience.
It is helping businesses break boundaries and make more money by making more sales. Every business out there can go digital. They only need to come up with the right strategy. The most important thing is to know why you want a digital transformation and how you can start it.
During this recent webinar, our guest speaker was Ozana Popescu, CRM IT Product Owner, from Maxeda Group DIY, and we discussed the following topics:
- How this leading multinational Retail Group is transforming it’s $1.3 business in today’s competitive environment, to become a leading digital, customer-first organization. Starting with the data.
- What it took to migrate from a decentralized legacy CRM, to a centralized Customer Relationship Management system, from planning to execution. Planning, timelines, problems averted, goals achieved.