Digital transformation is an inevitable process in all industries. The global economy is innovating and blooming thanks to the benefit of digital transformation.
More leaders use digital technology to run and manage their enterprises effectively and get more impressive results. With the benefits of digital transformation in business, companies can optimize traditional activities such as internal management, manufacturing, sales and marketing.
To understand more how digital transformation affects your businesses, Magenest will give you short writing clarifying the benefit of digital transformation.
Table of Contents
- 1. What is digital transformation?
- 2. Top 7 benefits of digital transformation for businesses
- 2.1. Gain data-driven insights – the most obvious benefit of digital transformation
- 2.2. Improve customer engagement – the remarkable advantages of digital transformation
- 2.3. Consolidate process and operation
- 2.4. Enhance efficiency
- 2.5. Better employee engagement and culture
- 2.6. Increase agility and innovation
- 2.7. Overwhelm competitors
- 3. How to implement digital transformation successfully?
- 4. A powerful tool for businesses in the digital transformation era
1. What is digital transformation?
Digital transformation is integrating digital technologies to remake a process to become more efficient or effective. In business, digital transformation happens when a company applies digital tools to create new business processes, culture, and customer experiences to meet market requirements, overcome the status quo’s challenges and achieve targets effectively.
There are six main technology advancements that are common to any enterprise:
- Digital Media.
- Internet of Things.
- Big Data.
They will transcend traditional roles like marketing, sales, logistics, accounting,… to improve efficiency and obtain better results. Digital transformation requires deep-dive understanding, innovative management thinking, tech-savvy knowledge and high adaptability to face the changing market.
2. Top 7 benefits of digital transformation for businesses
The ultimate purpose of digital transformation is to improve a business’s efficiency. It helps enterprises achieve this target by bringing to enterprises seven benefits.
2.1. Gain data-driven insights – the most obvious benefit of digital transformation
One of the great digital transformation benefits is the ability to track metrics and analyze the data that is gained during digital marketing efforts. Moreover, using these insights allows companies to optimize their strategies and processes for even better results.
In businesses, there are two things that matter more than most – costs and revenue. We can make massive changes to these by integrating data-based insights into the company culture.
Using data-driven insights to understand customers and feeds into a business strategy can enable hyper-personalization, relevancy, real-time feedback, and agility. This involves businesses making use of both structured (personal customer information) and unstructured data (social media metrics), pulling together data from many sides of the business to help drive the transformation journey.
Data in decision-making is very important, and businesses should not underestimate it. The road to a higher ROI will become much easier with the right leadership to encourage this attitude throughout an organization.
2.2. Improve customer engagement – the remarkable advantages of digital transformation
Digital transformation helps businesses to collect, store and analyze customer data quickly and accurately, so you can have a thorough understanding of your customers and create a successful plan. Companies can use data analysis and AI to gain greater insights, allowing them to adjust products and services to meet customer’s demands.
Besides, customer experience is transformed when enterprises implement digital transformation. Customers can reach online stores, choose items and accomplish the payment process on both mobile and desktop quickly and conveniently. Requirements, feedback and complaints of customers can transmit to enterprises speedily; thus, companies will deal with customers’ problems and innovate products and services. The bond between customers and businesses will be tighter and more durable.
2.3. Consolidate process and operation
Putting money aside, the greatest universal advantage that technology has given businesses is that it has made it easier and faster to connect with other people.
By shifting to digital, enterprises can stick more than just their workforce together, but also their entire architecture. This may include analytics, social media, and even project management interfaces.
This consolidation of the company processes and operations is an outstanding benefit of digital transformation since it enables the business to connect with its target customers and satisfy their demands.
In conclusion, the future of digital transformation is no longer a dot on the horizon. The pressing demand to implement it in the next few years can no longer be ignored – certainly not if the organization has any interest in success or profits. The digital age isn’t new, but it is far more different.
Choosing to remain on the outside was a liberty that many companies had over the past decade. We are in the midst of a digital Darwinism, and it’s the businesses that fully embrace and invest in their digital transformation that will thrive.
2.4. Enhance efficiency
Benefit of digital transformation is efficiency and productivity because of streamlining workflows, improving information flow and digitizing business operations. It integrates platforms to break down data silos and remove manual processes. A large management system can help leaders control the activities of companies and evaluate the productivity of employees.
Besides, business intelligence software like ERP can collect and analyze data at speed and accuracy. Companies can use that analysis to help them make decisions faster and more correctly than without advanced technologies.
2.5. Better employee engagement and culture
Many people fear change. The thought of the entire organization making a massive digital transformation can be a daunting prospect for a workforce from leadership to entry-level employees. All processes, strategies, the core structure, and company culture need to be addressed.
However, there is a big chance for unity throughout the workforce. To maximize the opportunities for a successful switch, there need to be strong connections.
With encouragement, the staff is able to break down age gaps and social divides to engage in conversation and learn together. At this point, solid leadership can improve the digital intelligence of the workforce.
The foundation for a smooth digital transformation is built upon digital compatibility. When all departments are connected, a strong company culture shapes, allowing a successful and confident transition.
2.6. Increase agility and innovation
In business, agility is the ability to develop and enhance quickly, especially regarding digital processes continuously.
This penchant for revolution is held in high regard by many industries. Regarding digital transformation initiatives, 68% of companies rank agility among the top three considerations.
Dr. Brigit Koenig, CEO of German’s Allianz Health, summarized the state of business in the digital age when she said, “It’s never over. There is always change and always more to do.”
The fast-growing and perpetual changing of the digital landscape leaves no time for businesses to rest on their laurels.
Even companies that are on top must be ready to adapt and innovate. There is always new competition, new tools, and new trends. The customer will need more, wanting something faster and better than before. Therefore, staying ready is crucial.
2.7. Overwhelm competitors
Nowadays, competitive intelligence is considered a crucial element when building a business strategy. Data is an indispensable part of any business. With cutting-edge technology, companies can transform raw data into standardized data that give reliable results. Having high-quality data, enterprises can optimize all crucial activities and make great decisions to have more sales. Besides, leaders can analyze the market accurately, catch the trends, and forecast the status quo in the future.
Not only that, one of the biggest digital transformation benefits is faster time to market. There is a very high standard for products to pass before going into production. It takes a long time for you to wait to check the components of products in a traditional way. As a result, all processes from creating to marketing can be delayed, and you will market products later. But, if you can do all this in virtual, the process will be faster, and the time to market will be cut to a fraction of what it is today.
3. How to implement digital transformation successfully?
There is no doubt about the enormous benefit of digital transformation. Almost all companies want to start the digital transformation journey. But it is not as easy as some people think. You have to prepare four factors that help you successfully execute the “technology revolution” for your company.
3.1. Apply new technology
Digital transformation can occur only if you apply technology tools and devices to your company. There is plenty of technology software and systems for you to optimize the enterprise’s activities. The thing you have to do is researching and taking advice about proficient software that fits your demand and business size. For example, If you worry about managing all sectors in business productively, you can use holistic ERP software like Odoo. How about a cloud platform? Amazon Web Services will be the best choice for you.
3.2. Have tech-savvy employees
Employees are the core of any business. They are persons that use technical tools daily and accomplish tasks and projects with these ones. There are two ways for any company to have tech-savvy staff: training and recruiting. Companies organize training classes about technical tools by hiring experts or using their own tech employees. If not, you can recruit employees who have both technical and specific knowledge. It is based on your requirements and budgets.
3.3. Learn from others
Accumulating knowledge from others’ experiences is a clever way to do anything. It would help if you researched how competitors apply technology into their firms, point out the pros and cons of practical methods, and choose the best choices for you. Besides learning, you can understand more about competitors and create a plan to win them.
3.4. Increase flexibility
The flexibility is shown by the way you deal with the change of market. Updating all new information about digital trends, innovative digital transformation methods, and forecasting the market’s future by data analysis will help you keep pace with technological updating and face the volatility of the status quo.
4. A powerful tool for businesses in the digital transformation era
The benefit of digital transformation is significant; so, many enterprises want to start their digital transformation journey. However, it requires cutting-edge tools, and entrepreneurs can have problems finding the ones that fit with their business. To solve these issues, Magenest has spent several years researching and developing an optimal and cost-effective tool to help you in the digital transformation era – One stop solution.
Magenest integrates technology software into a complete solution. The solution package includes Magento for developing websites, Odoo – ERP software for internal operation, and Amazon Web Services for the cloud platform.
The special point is that you don’t have to hire four suppliers that boost the cost higher. Just choose one, and you will have it all.
Talk to us now to have more information!