It is virtually impossible to stay current with modern business strategies without running into the term “digital transformation.” But what does it mean? More importantly, why implement it now?
Digital transformation is the adoption of digital processes and tools to achieve strategic business objectives . It is a complex, multifaceted process that greatly impacts the company as a source of cultural change in all areas.
The first agricultural revolution caused a complete lifestyle transition for many cultures in the Neolithic period. The Industrial Revolution caused profound socio-cultural changes because of the shift from an agricultural to an industrial society. The digital revolution has completely transformed the way people communicate, buy and work.
What is the lowest common denominator in all these cases? Technology. Technology is the catalyst that can revolutionize society. Companies that take an open approach to new technologies must agree to invest in them in order to embrace change in their organization and society as a whole. It is not a choice: changes will happen anyway. You just have to decide whether to be part of the change or get dragged down by it.
Four reasons to implement Digital Transformation in your company now
Let’s look at 4 reasons why it is critical to embrace digital transformation immediately:
1. Increased resilience and innovative corporate culture
Some realities run into the so-called “competence trap.” It means they settle on a particularly positive current situation and fail to change quickly when the environment changes unfavorably.
A company that embraces Digital Transformation, on the other hand, is a resilient one, able to respond to changing customer needs and expectations. Mentality, resources and planning aimed at resilience proactively change corporate culture.
2. Increased value to the customer
In most digital transformation projects, the customer experience is the focus. People are the most important component of the customer experience, and to sell and differentiate yourself from the competition, you need a great customer experience. We’re not just talking about great products, but also a smooth and innovative shopping experience and attentive and timely customer service.
3. Workforce positively involved
According to a recent Gallup survey, uninvolved employees cost the U.S. economy about $605 billion a year. A “disengaged” employee is psychologically detached from his or her job and company. Instead, digital companies are able to engage employees through transparency, communication, and learning and career opportunities. This makes them enthusiastic about the tasks and the workplace. They no longer devote only their time to the company, but also their energy and passion.
In addition, with Digital Transformation, companies can better monitor business performance through the availability and sharing of up-to-date data.
4. Increased profits
Employees involved and trained on the use of emerging technologies, use of up-to-date data to make smart decisions, satisfied customers with the buying and after-sales experience, and improved processes through automation. All this can only lead to increased profits. In fact, according to a study by IDG Communication, 32 percent of IT managers involved in a Digital Transformation process say the change has already helped their organization achieve a 23 percent increase in revenue, on average.
How to go about starting a Digital Transformation process?
IDG Communication says the biggest obstacles in achieving success through Digital Transformation includes the lack of digital skills and the difficulty in calculating how soon the economic effort will be rewarded.
To initiate a Digital Transformation process, rely on those with the right skills. F1 Consulting & Services is just that: a qualified team with the right experience to proactively guide your company toward this challenge. Contact us to make an appointment.