As the world emerged with the pandemic, digital transformation evolved from ‘good to have’ to ‘must have.’ Most companies now see digital transformation as a necessary step to preserve their business. Digitization currently contributes significantly to business value, thanks to the ubiquitous speedy internet. A rise in IT service business, business intelligence platforms, and AI investments are proof of this. So, what are the top Digital Transformation business benefits? Read on to find out!
Understanding the Top Digital Transformation Business Benefits
Today, technology plays a significant role in business, with recent advancements constantly changing business dynamics. Realizing the importance of technological innovation for growth has made digital transformation one of the most important components of decision-making in any given industry.
While digital transformation plays several roles in revolutionizing today’s businesses and technologies, here are the top business benefits of digital transformation:
1. Elevated Productivity
- People productivity: With digital transformation, employees’ workloads are substantially reduced by eliminating manual tasks. Moreover, automating business processes means less pressure on employees to do mundane and repetitive tasks, allowing them to focus on more important tasks.
- Organizational productivity: Process and workflow optimization can help businesses see enhancement and new scope in capabilities, aiding overall productivity. Innovating and growing companies correlate, resulting in fast solution-building.
2. Better Customer Experience
Automated and AI-aided customer service boosts customer interaction management and speeds up complaint/conflict resolution. Digital transformation also offers better reachability, simplification of usage of services, and, most importantly, convenience.
3. Compliance
The scope of things going wrong with manual work is scary. Add a component of dynamic changes challenging manual updates, and operations become nightmares instantly. Digital transformation offers accuracy and saves time that can be used to drive operational focus toward the most critical aspects. And it is not just the business that is evolving – compliance and regulations are right behind- in the line of evolution.
4. Cost Savings
What adds to the costs of a company? Management, operations, strategy, errors? How does digital transformation help? Predictive analysis and automation reduce operational costs to a large extent. While there may be a learning curve when companies embrace the Digital transformation path, it is natural to wonder if the transformation cost is justified.
I would say the factors that can take any organization to reach far greater heights and drive far greater returns have to be:
- The scope of optimized operations
- Better ways of management
- Predictive and preventive strategies
- An increase in agility & accessibility
- Reduced margin of errors.
5. New Capabilities
Digital transformation has unlocked a flood of new capabilities, be it new-age connected systems, faster connectivity, modern infrastructure, or the new universe of analytics. These components have changed the way businesses operate – we operate. The impact is not just technical but has also unlocked a new humane component: it has made people efficient and offered clarity in focus.
The business value chain has transformed, too – with an increase in productivity, flexibilities of economics, and an environment capable of containing the assertive impact of constant change. This transformation looks great in correlation to the success of different industries. The data insights are a peak into the future, including human behavior as a component of considerations while evaluating numbers, patterns, and possibilities.
Use Cases Portraying the Business Benefits of Digital Transformation
A large insurance brokerage firm in the US has transformed its legacy application portfolio with the latest technology. This has helped them in improving their employee productivity. Their team can process more daily user requests, resulting in a better customer experience. This transformation was successful due to the organization’s vision and commitment to making this happen. Lack of support for their legacy platform and security risk has also played a catalytic role in expediting this project’s implementation.
A nonprofit organization wanted to work smarter, increase revenue, deliver more services and programs, and measure their social impact. Thanks to digital transformation, the nonprofit could enable a seamless and consistent user experience to serve the underserved community via cutting-edge web and mobile interfaces. Today, the company can reach new customer segments and make more informed decisions about the overall platform and growth strategy. This will eventually drive an improved customer-centric culture.
Enabling Digital Transformation Business Benefits with the Right Partner
Research & Markets projects a compound annual growth rate (CAGR) of 16.5% for the global digital transformation market. The market is expected to grow to $1 trillion by 2025. As the pace of business and market change accelerates, the only way to respond to new trends is through effective digital transformation. If you want to capitalize on the business benefits of digital transformation, you need to engage with the right partner today.
