In the space age of today, you will be hard-pressed to find businesses that don’t have an online presence. Ever since the Internet was born in 1990, the world embraced it immediately, which gave everyone the power to go virtual and caused an unprecedented rise in digital innovations.
Fast forward to two decades later, and digital innovations have upended every facet of our life, creating more and more opportunities every day.
Going digital is more than a necessity today; it’s the new world order, and it’s a crucial cog in an organization’s plans to begin their progress towards digital transformation. And with digital disruptors waiting to rear their head at any opportune moment, only those businesses that are on a path to digitally transform themselves will survive.
In fact, digital transformation has become such an important consideration that 70% of organizations either have a digital transformation strategy or are working on one.
Yet another study found out that companies claimed that 40% of all their technology spending in 2019 went behind digital transformation.
Moreover, as digital transformation grows further, it’s going to be increasingly important to weave it into the very fabric of the organization. Executives say this is essential to drive the benefits of faster time-to-market (36%), improved operational efficiency (40%), and increased ability to meet customer expectations (35%).
As the race for digital transformation heats up, many businesses find themselves at crossroads on their digital journey.
Here, we will explore the benefits of going digital and why businesses who are in two minds about it should pay importance to it lest they would like to lag behind in the fourth industrial revolution.
1. Revolutionizes the Customer Experience
In the on-demand economy of today, people are obsessed with getting everything instantly. This is a direct manifestation of their desire to attain a simple life and simpler still. The world’s obsession with technology revolves around them getting an expeditious way to solve their problems.
It’s safe to conclude, therefore, that customer experience resides at the very core of digital transformation. That’s why it’s unsurprising to see how many organizations focus on it as part of their strategy to go digital. This is so prevalent that nearly 50% of all companies say improving customer experience and customer satisfaction were the leading influences to start a digital transformation.
As companies increasingly recognize the power that digital transformation has and the value it can bring them by introducing value first, they are rushing to catapult themselves online.
Moreover, it’s substantially profitable too; so much so that companies that rake in $1 billion a year in revenue earn an additional $700 million over three years by using digital transformation for customer experience.
Additionally, as per McKinsey, digital transformation helps businesses shape the success factors of great customer experience, such as:
- Creating, authenticating, and digitizing customer journeys
- Attaining increased customer embracement
- Developing agility in offering digital customer journey transformation
2. Increases Business Competitiveness
The digital age has brought about a surge in business competitiveness, with it being the central reason that inspires organizations to take the digital leap. True to this prognosis, 70% of executives from an ITProPortal survey revealed that their wish to outdo competition was what led them to consider enterprise digital transformation.
Furthermore, more than 33% of the respondents think that their competitors will leave them behind in the dust if they are late to act. By espousing technology first-hand, these organizations are hoping to optimize their operations to gain a competitive edge in the market.
3. Drives Enhanced Decision-Making
One of the foremost benefits of digital transformation is gaining the ability to record, analyze, and parse consumer data to source insights about audience needs.
The Aberdeen Group states that businesses offering a superlative digital experience can hope to earn a 15% increase in customer retention rates and 6x better customer satisfaction. This helps the top brass improve their decision-making and sharpen their strategies to gain improved business outcomes.
Utilizing data-based insights helps companies understand their customers better and enables their hyper-personalization efforts to score more brownie points on the customer experience front by introducing real-time business agility.
Digital businesses can make sense of both structured and unstructured data and use it to customize service offerings accordingly to accelerate the transformation journey.
4. Enhances Organizational Flexibility
Independent research conducted by NuoDB revealed that business agility is one of the top three considerations of digital transformation for 68% of businesses.
In trade, business agility is the potential of organizations to improve continually and develop themselves quickly, especially with respect to digital processes.
This transition to agile business processes then leads to better and more effective decision-making and enhances organizational flexibility. The penchant for enhancing organizational flexibility by introducing agility is treasured highly across businesses and industries.
Bill Gates, the CEO of Microsoft, summed up business agility perfectly when he said:
“Success today requires the agility and drive to constantly rethink, reinvigorate, react, and reinvent.”
The rapid pace at which the digital landscape is evolving leaves a ton of things to learn to keep pace with the changing times. This leaves companies with no choice but to adapt and reinvent.
Even Bill Gates, the multibillionaire co-founder of Microsoft, knows that there will always be competition, which will lead the customer to demand more and more. Thus, it is very crucial to stay ready to offer the customers what they might want, and when they might want it.
5. Facilitates Better Collaboration Across Departments
The digital transformation of a company will require the radical overhaul of departments and operational layers on an enterprise-wide scale for it to be successful. The thought of reorganizing can be a daunting one, especially for the workforce, since all their daily processes and strategies will need to be reoriented.
However, more than it being an unsettling prospect for enterprises, it provides them with an opportunity to avoid organizational throes born out differing processes across departments by unifying them.
This will not only help sidestep communication barriers, but it will also lead to improved productivity, something that would not have been possible if it were not for digital transformation.
With digital congruence across operational layers, businesses can build a robust foundation and improve collaboration by breaking down gaps in communication to make it easier so that your workforce can learn from each other and also together.
When all your departments are oriented in the pursuit of one common goal, they will be more productive and supportive of each other’s efforts, leading to the formation of a strong company culture where ideas can be freely shared.
6. Improves the Skill Set of the Workforce
With newer technology going tropospheric, it increasingly becomes the order of the day, and its demand continues to grow. With artificial intelligence and machine learning coming into their own lately, digital businesses will see their future hinge on the following technologies:
- Cloud computing
- Growth hacking
- Augmented Reality/Virtual Reality (AR/VR)
- Data analytics
The employment landscape paints an acute picture of the contrast of the rising demand for the aforementioned skill sets and the dearth of digital talent required to fill in those roles.
According to Altimeter, 31% of companies said that they lacked the talent required among their workforce and leadership to keep their digital transformation efforts steady. Consequently, these companies were also those who later capped a lid on their digital transformation efforts citing digital transformation as a huge cost.
However, braving those odds would have allowed those organizations to allow their employees to develop those skills, thereby equipping themselves with a steady reservoir of reared talent that could help them sustain organizational growth even in the face of higher competition in the digital age.
As it is evident from the Altimeter survey, the central driver of this flexible nature is having a digital-native workplace. Being digitally native in your processes will allow your workforce the time and opportunity to increasingly acquaint themselves with better tools and technologies so that they can upskill themselves, thereby remaining engaged in the whole process without being overwhelmed.
Taking into view that 60% of professionals don’t feel going for a change, reorienting the company culture towards one that promotes and advocates digital learning will see both the workforce and the organizations benefit as employees turn more digitally savvy.
Digital transformation can help organizations realize this vision by impacting leadership so that they drive the culture from the top-down. In fact, it is so important that 90% of large organizations in 2019 reported having a CDO in place to drive these efforts.
Dilawri’s Digital Transformation Success Story
A contemporary digital transformation success story, Dilawri’s tale of turning an obstacle into an opening has left everyone with an important lesson on the power of digital transformation.
Ever since the outbreak of the novel coronavirus, Dilawri’s car sales had taken a hit. Since car sales relied heavily on interpersonal encounters, Dilawri had to find new ways to turn the crisis around and improve the overall customer experience while doing so.
An interesting turn followed and they stumbled upon an advanced AI bot that helped them engage potential customers and recreate the live experience for them online.
With the Acquire chatbot, Dilawri proactively engaged customers in its sales funnel and was able to segregate buyer needs effectively. After identifying the nature of its leads, Dilawri took the experience up a notch by switching to the co-browsing to provide automobile options to its customers and offered virtual walkarounds of the vehicles with the help of video chat.
They eventually capped the whole experience with proactive customer experience in the form of keeping customers engaged 24/7 and catching conflicts in service with the help of the chatbot so that they could improve upon their experience further.
Being offline is no longer a liberty that businesses had in the past. To keep up with the changing times, it is essential that they transform themselves digitally to meet customer expectations and survive the cut-throat competition of today.
The world is in the middle of a digital overhaul, and companies must rise up and invest themselves in digital transformation to help themselves be innovative and create new experiences for their customers to keep thriving indefinitely.