Over recent years, it has become clear that digital transformation is the way forward for businesses. Recent estimates predict that the global spending on digital technologies will be at almost $2 trillion by 2022. While 30% of the global 2000 companies are predicted to allocate 10% of their revenue to their ongoing digital strategies by 2020. These companies see the technological adaptation of their business as a worthwhile, long-term investment to ensure their future progression.
But for many companies, it seems challenging to even set the ball rolling with digital transformation, let alone fully execute it. This is because digital adaption goes beyond simply buying the latest tech for your office. It requires a company-wide shift in mentality, approach and investment. It’s so wide-reaching that it affects all levels of an organisation and every team within it. It’s no wonder that some companies are avoiding it altogether.
But burying your head in the sand won’t save you from the inevitable. It’s not a question of if, but when you will digitally transform. In order to survive and adapt with the times, this shift towards a more connected, tech-integrated future is unavoidable. But your reasons to digitally transform in the first place might be unexpected. Wanting to use state-of-the-art tech is not the only reason to consider making the move towards a more digitally-savvy future. Here are some of the most common reasons why digital transformation is needed in a company.
In order to keep growing and stay competitive as a business, you need to look at how your company will have to adapt in the long run. This includes looking at what your business currently needs, and will need in the future as your requirements change.
Often, the spending allocation on the IT department of a business is determined by what that business needs. Whatever results the company wants, whether today or in five years’ time, will decide how IT spending is allocated. If the goal is to foster continuous improvement for a company, then digital transformation aligns with a company’s activities and processes.
Whether that’s implementing AI to alleviate on-the-ground labour demands, using cloud platforms to connect teams across different locations or attracting new users through your modern interface. The first steps towards digital transformation can often come from a desire to use technologies to improve how your business operates and steer it towards future growth.
Google can tell you the answer to your question in seconds. You can order your dinner to your door in minutes. You can Skype your friends halfway across the world in a matter of clicks. Because of our ever-increasing digital world, we are all becoming used to a more on-demand way of doing things. As customers, we expect this immediacy to translate into every experience with any company that we engage with. Whether that’s with the supermarket, your local council or a marketing agency. Our demands and expectations of businesses require a company to have a certain level of integrated technology, so they can provide an easy-to-use, immediate, high-quality service. Otherwise, we become frustrated, impatient, and resort to finding the answers, services or products elsewhere.
Providing a user with a seamless, positive experience when dealing with your company is something that even the smallest businesses should ensure. This is not only good for your company’s reputation and brand image. In a society where customers have the power to punish or promote businesses, not ensuring a smooth customer experience is self-damaging. While it’s clear that adapting to this new on-demand economy is essential, digitally transforming your company lets you get ahead of the game. By fully embracing digital adaptation, you will be able to do more than just provide your customers with a level of service that they expect. You will be able to provide an agile, enjoyable experience that gives you a competitive edge over other businesses who are still doing the bare minimum to integrate technology into how they operate.
Helping your workforce
Often, technology integration can come with worries of how the same technologies will remove the need for some jobs. But while it’s true that technologies such as AI can replace humans in part, they also give your employees the time to divert their efforts to more valuable tasks. Embracing new tech that can complete the more humdrum jobs alleviates the need for your workforce to spend their time on boring, repetitive work. Instead, they can focus on providing a more meaningful experience to your customers.
Digital technology helps your employees not only become more effective in their roles, but also provides an opportunity to offer a higher quality work output. Instead of time being taken up by manual processes like data input, they can focus their efforts on parts of their job that could benefit from greater devotion. HR departments can automate processes like payrolls, giving them more time to focus on the more human side of their jobs. Front of house staff can spend less time answering common questions and focus on providing a high-quality service to individual customers. Teams can work remotely to help embrace flexible working, reducing the need for extensive office space and allowing employees to fit their work around other commitments. Digital transformation enables an environment that helps your employees to achieve, come up with innovative ideas and foster meaningful relationships with colleagues, teams and clients.
Data is becoming the new currency in which businesses exchange. From the tech-based businesses to organisations in the public sector such as local authorities, data is or soon will be driving how you operate. The collection of data from your consumers allows you to not only understand your audience but also create more personalised interactions between you and your customers. This data provides insights into your clients – making sense of and utilising it to its fullest potential will distinguish you from your competitors. However, this also raises the issue of security.
Data is quickly emerging as the most valuable asset that a business can have. Therefore keeping this data secure should be of primary importance. This is becoming an increasingly complicated task in comparison to previous years. To keep your data safe, a progressive business model will need to include implementing a secure and constantly evolving security system across all networks and processes.
Where to start
Often, there might be multiple reasons to start on a journey of digital business transformation. An essential part of digital transformation is understanding that the factors which drive success are connected. By focussing on using technology integration to help your workforce, you will help encourage them to foster better user experiences. By aiming to accommodate long-term growth, you might also consider how to protect yourself from security attacks and data theft.
The point is, digital transformation is started for a variety of reasons, but also answers lots of problems at the same time, even before those problems become apparent. That’s why it’s important for each and every company, regardless of their size, industry or expertise.
If you are interested in learning how you can start your journey to digital transformation, get in touch with us today by emailing us at firstname.lastname@example.org or book a demo to see how IntelAgent works.