Article by Judy
In this article, we look at what is digital transformation and how it can benefit your business.
Digital Transformation and Its Benefits Explained
The term digital transformation has been making waves among businesses, and many people are using this latest buzzword to explain their business strategy. The thing is, while it sounds exciting, many are still confused about the true meaning of digital transformation. After all, there are so many other “digital” terms like digitisation, digital technologies, digital data and digital marketing being floated around in business conversations. What’s the difference? And are there any benefits of digital transformation?
First of all, let’s tackle the question of what is digital transformation. To explain, let’s first look at what digital transformation is not.
What Digital Transformation is Not
Digital transformation is not just about converting information from paper-based to digital (think paper versus PDF document) – that would be what we called digitisation, which has been around since computers came about.
Digital transformation is also not just about using digital data to simplify the established work processes. For example, the Singapore government’s move to create a nationwide E-invoicing system across all agencies (known as InvoiceNow) can undoubtedly cut down significant time and manpower in managing payment, but it doesn’t essentially change the process of invoicing and payment. While it is a necessary step forward for any organisation that wishes to undertake digital transformation, simplifying processes doesn’t fundamentally change how it does business.
Digital transformation shouldn’t be confused with digital marketing too. While it is true that digital marketing such as social media marketing changes the way companies attract, interact and retain customers, it is still a tactical digital strategy engaged mostly by the marketing department.
Most importantly, digital transformation isn’t an afterthought or a tool to plug gaps in your existing systems. Conversely, it must be woven into the fabric of your organisation and championed by the echelon of the team.
So, What Exactly Is Digital Transformation?
Digital transformation is the sum of the above, and more. It is about finding radically new ways of conducting business and serving customers by leveraging digital technologies. Eventually, it aims to discover new frontiers and push boundaries.
Digital transformation at its best alters competitive landscapes (think disruption) and the market’s underlying forces. It transcends functions such as operations, marketing, and customer service. It changes your business model. In fact, it should mutate the very DNA of your business.
Some of the most valuable or innovative companies in the world have digital transformation written all over. Think about Apple’s iTunes (a new way of enjoying music), Airbnb (a new way of experiencing travels), Netflix (a new way of watching movies) and Alibaba (a new way of shopping). These companies embrace digital transformation in every aspect of their business to deliver a revolutionary experience.
Benefits of Digital Transformation
Should you start thinking about digital transformation? Perhaps these five benefits of digital transformation would convince you to.
1. Revolutionises Customer Experience
At the heart of the digital transformation is customer experience. Digital transformation is centred on the needs and expectations of your customers and takes that to a higher plane. For example, by introducing digital tools, you simplify how your customers interact with you, thus making your brand more attractive.
2. Provides Deeper Customer Insights Through Data
Be a step ahead of your customers by knowing what they want before they even ask. By integrating data analytics and data-driven insights into your business, it can offer hyper-personalisation and real-time feedback.
3. Improves Agility
COVID-19 shows the world the importance of business agility. Digital innovation improves agility (could any business executive survive without video conferencing apps during the pandemic?) and allows businesses to remain relevant. By transforming your company digitally, dexterity can be adapted by all levels of your organisation.
4. Raises Productivity
Digital transformation helps to streamline workflows and collaborations, resulting in a tighter, more efficient workforce. It is not just about moving away from manual processes; the entire digital architecture should be designed to connect systems and people together.
5. Increases Bottom Line
Because you are questioning, improving and revolutionising your fundamental business strategy through digital transformation, you can expect not just single-digit improvements in profitability but successes at new heights.
Are you ready to embrace the benefits of digital transformation and future-proof your organisation? Contact Accrets for a free consultation today!