16 March 2021
The importance of digital transformation has heightened with the disruptions of COVID-19 over the past year. When it comes to digital technology initiatives, 56% of global companies have said that their top priority is digital transformation, closely followed by cybersecurity at 50%. However, due to work from home schedules, many organisations have overlooked the opportunities for digital transformation, creating the risk of falling behind the digital advances.
Digital transformation is no longer optional to survive in the ever-changing digital landscape therefore it is essential that your business digitally transforms in both new and incremental ways. The following blog discusses what digital transformation is and more importantly, why it is essential for your business.
Essentially, digital transformation is the driving force that changes the way business gets done. Despite many misconceptions, it runs much deeper than simply updating your digital technology. Hence, digital transformation involves the innovation and adaptation of all aspects of a business to remain efficient against changes in customer expectations, society and market requirements. More specifically, implementing measurable updates in the systems, processes and people across the whole business whereby digital technology is a catalyst.
Digital technology in its simplest definition is the tools, systems and resources that generate, store or process data. Taking advantage of this technology source can open opportunities for productivity gains and a competitive edge for your business, all while delivering a notable customer experience.
Simply put, digital transformation enables the progression of new, streamlined business models. If you overlook the opportunities to digitally transform your business then you run the risk of failing to scale to increasing demand. More specifically, existing paper-based procurement processes may have been fit for purpose under less demanding circumstances. However, today it is holding back your businesses delivery capacity and having a knock-on impact that results in delays, data input errors and lost revenue.
New tools, techniques and digital technologies become available to your business every day. For every technical choice you make, there has been a vast supply of more effective alternatives that are more cost-effective, reliable, easier to maintain and support increasing demand. Why not make use of them and become the best in business?
Digital transformation and the move away from manual processes and towards automated processes unlocks both time and capacity, allowing work to flow faster, easier, and more efficiently. As a result, employees can redirect their time towards alternative activities that deliver greater value to your business goals. Equally, digital transformation will improve your employee experiences. This will not only increase productivity but will attract and retain talent in your business through enhanced digital technology experiences.
Moreover, many organisations assume that employee experience is separate from customer experience however, the two are often inextricably linked when customer frustrations are explored. Therefore, more positive employee experiences can make for more positive customer experiences.
Customer experience is at the heart of digital transformation. It is an important driver to focus on as it emphasises the creation of happy customers by removing internal inefficiencies. According to a 2020 global CIO survey, 69% of respondents said that the improvement of their customer experience held great importance in driving their digital transformation efforts.
As mentioned above, improved employee experience is one outcome of digital transformation that can impact customer experience. But, it can go much deeper than this. As such, digital transformation provides opportunities to increase engagement with the modern, tech-savvy customer base by staying up-to-date in the digital economy and delivering on their expectations. Equally, this will help to build more sustainable relationships between your business and its customers. For example, through the ability to respond to your customers speedily through automated systems.
The sum of the above points leads to the retention of a competitive edge. There’s no doubt that competitors are evolving their products at a break-neck pace. With rapid evolution being a common characteristic across all successful businesses, you must stay relevant to maintain your competitive edge.
Businesses that can rapidly evolve their products, employees and processes can utilise new, more sophisticated approaches to existing problems that will deliver more value to customers and improve their bottom line. As such, it is essential to invest in digitally transforming your business and training your employees in data and technology so that your business can be a more robust competitor in the marketplace. If your team understands how to adapt then it will help keep you competitive.
To achieve effective digital transformation, it is best practice to create a plan of action known as your Digital Transformation Strategy. This plan describes the strategic actions your business must take to strategically reposition itself in the changing digital economy.
Here at Navos, our experienced Digital Transformation Consultancy service grants you direct access to expert knowledge and guidance in the creation and execution of your tailored digital transformation strategy, helping your business to retain its competitive edge amid digital disruption.
Find out more about how Navos can support your technology challenges.Contact us