Technology is creating new opportunities for business at a pace that has never been seen before. Digital transformation is the key for organizations seeking to adapt to this changing technology landscape, and prepare for the competitive pressures that will result.
Here are 7 ways digital transformation can benefit your organization:
Greater operational transparency
Digital transformation breaks down barriers between departments allowing information to be shared freely and in real time across an organization. The data integration process that is typically part of digital transformation allows organizations to create a whole company view of their processes and commercial activities to better understand their operations and identify areas for improvement.
Better decision making powered by data
Enterprise systems generate data at a pace that is mind boggling. Managing and analyzing that data has traditionally been a daunting task which prevented many organizations from incorporating this data into their decision-making processes.
Digital transformation technologies such as cloud computing, big data analytics, and AI can provide organizations with real-time access to their enterprise data in formats that enable quick analysis to identify insights and opportunities, and support more informed decision-making and response.
Increase customer satisfaction
Many companies claim to be customer-centric. Practically speaking, this is often more of a philosophy based on subjective insights and goodwill as opposed to an actual understanding of the customer. Digital transformation is changing that. By unlocking insights from enterprise data, digitalization technologies can help organizations better understand individual clients as well as recognize overall macro trends in their business. These insights can help organizations to personalize their service delivery to meet the changing needs of each customer, with an added benefit of improved forecasting which can help to service clients more efficiently. Another aspect of digital transformation is the creation of a holistic view of individual customer activity across departments and functions. This holistic view supports better communication with the customer and ultimately service delivery.
Digital transformation primarily supports enhanced organizational agility in two ways: faster and better informed decision-making, and process automation. The access to real-time data presented through thoughtfully designed reporting interfaces allows organizations to quickly recognize and understand market shifts and respond quickly with well-informed actions. Another byproduct of digital transformation is data integration. Data integration supports the establishment of an unified view of customer activity across departments such as sales, customer service, finance, distribution, etc. This creates opportunities for automation. Processes that previously required manual intervention, such as hand offs between departments such as sales to finance or finance to shipping can be integrated and automated supporting faster customer service and order fulfillment.
Digital transformation can improve communication and collaboration across organizations. A digital enterprise can share information across an organization ensuring all customer touchpoints are aligned to deliver a consistent response across departments. Digital transformation can support more direct communication, faster response times, and more complete documentation of decisions made and actions taken. This improved visibility, communication, information sharing and documentation ultimately produces greater collaboration, accountability, and productivity.
Digital transformation produces greater operational efficiency. Digital transformation allows organizations to reduce their reliance on manual processes that can introduce errors or delays. A thoughtful approach to digital transformation should include steps to streamline the consistent management of enterprise data and identify processes which can be automated based on clearly defined dependencies which can be built into software.
With digital transformation, organizations are laying the foundation for future growth. Beyond the operational and competitive advantages that are created by digital transformation, organizations can also prepare themselves for the future. Digital technologies are designed to scale and support relatively inexpensive expansion of storage capacity and computing power to meet future organizational needs. Furthermore, the improved integration and management of data that comes with digital transformation facilitates easier adoption of new and innovative technologies in the future.