5 Benefits of Digital Transformation

The pace of digital disruption is accelerating. By 2027, innovation consultancy Innosight predicts that 75 percent of the S&P 500 will be replaced.

Many business leaders came into 2020 with digital transformation still on their to-do lists. Then, the pandemic hit. Digital transformation became an urgency. Most companies addressed the digital issues they needed to survive, that’s not a digital transformation, but it’s understandable under the circumstances.

To stay competitive and relevant, it's crucial for companies to begin or progress their transition to digital transformation.

There are countless examples illustrating how digital leaders are reinventing industries by leveraging technology and achieving amazing results such as Amazon, Airbnb, or Uber.

Their success wasn’t just the result of having great products and services along with a disruptive mentality. They were born out of a deep understanding of how digital can redefine customer experience and customer expectations of value.

The importance of Digital Transformation is not only that it will better prepare you for unforeseen challenges, but it will also give you all types of advantages.

In this article, we’ll explore some of the biggest benefits of digital transformation.

1. Data-based insights

A great benefit of going digital is the ability to track metrics and analyze data. Using these insights allows businesses to optimize their strategies and processes for better results.

Digitalization gives companies the ability to combine data from all customer interactions into a useful, actionable format to optimize customer experiences.

Using data-driven insights to understand customers enables personalization, relevancy, and real-time feedback. To increase agility, businesses make use of both structured (personal information) and unstructured data (social media metrics) pulling together data from many sides to help drive the transformation journey.

The importance of data in decision-making cannot be underestimated, especially when designing and optimizing your digital strategy. Businesses that succeed are constantly gathering insights from customer interactions and using that data to improve.

2. Agility and Innovation

Agility is the ability to continuously improve and develop quickly, especially regarding digital processes. Being able to deliver solutions in a matter of days is a huge competitive advantage.

COVID-19 gave the business worldwide a hard test on agility and innovation. Many were left scrambling because they didn’t have processes in place to adapt quickly.

For other businesses, the move to remote work was relatively seamless. They already had the digital culture to work from anywhere with operational efficiency.

When employees are immersed in digital technologies, companies increase their ability to respond to market changes. With the digital landscape constantly evolving, businesses must be prepared to adapt and innovate. As technology evolves, customers will continue to demand quicker service, leading to increased competition.

3. Process and Operations

There are different areas that could slow a business down and reduce efficiency. Digital transformation eliminates many of them. When you replace legacy processes with automated workflows, while examining your current processes, you can reduce friction in your business.

The main benefit that technology has given businesses is that it has made it easier to connect with other people. Consolidating the company processes enables the business to connect with their target audience and satisfy their needs in a way that wasn't possible before the digital age.

4. Customer Experience

At the heart of digital transformation lies the desire to better serve customers. Whether it is answering search queries to capture them at the top of the funnel or providing better website UX and more agile service offerings, the point is to improve customer experience.

People want valuable solutions to their problems, and they want it fast. But they also want simplicity. When you offer digital tools to your customers, you make their lives easier, and it makes your business more attractive to potential customers. But, most importantly, it keeps you relevant.

Businesses that offer an outdated experience will have trouble competing with those that stay up to date with modern technology.

5. Skills and Knowledge

As new technology continues to rise the demand for these specialized skills will grow. The future of digital business is looking to be heavily built upon the following skillsets:

• Artificial intelligence
• Machine Learning
• Data Analytics
• Growth Hacking

Many companies view digital transformation as a huge cost rather than a smart investment.

But businesses that allow their employees to develop these skills for the future are building priceless knowledge for a sustainable future of growth and a competitive edge in the digital age.

Digital transformation is in our day-to-day lives, businesses can no longer wonder if it’s worth it. In today’s fast-moving digital landscape, companies big and small must rethink their strategies to digitally transform their business strategy.

Digitally transforming your company requires a holistic approach to re-think how your business operates and how it approaches customer experience.