5 Ways Digital Transformation benefits businesses
In simple terms Digital Transformation is about Improving current processes by removing repetitive manual steps, defining new automated operational processes, and leveraging technology advances using AI/ML. It represents a cultural shift to a more agile and intelligent way of doing business, powered by technology.
Here we are highlighting five ways Digital Transformation is benefitting businesses:
1) Revenue Growth
As per a recent SAP survey, leaders expect 23% higher revenue growth in the next two years for organizations that have adopted the culture of Digital Transformation. DX has enabled organizations to deliver more value to their existing and future customers without increasing the workforce hence increased revenue. Efficient automated processes, better decision making, and increased agility as a result of Digital Transformation are a recipe for growth.
2) Cost Reduction
One aspect of Digital Transformation is to automate repetitive manual business processes. It reduces the cost being spent on technology debt, legacy software, and systems. With the help of automation tools, AI/ ML/NLP, integrated systems, and processes organizations can save more than 20% in cost. According to SAP Digital Transformation and Executives study, 80% of leaders say the transformation has reduced cost, enabled them to run efficiently, and given them extra cash to invest for the future.
Cost decreases from adopting DX in global companies 2019, by function.
3) Customer Retention
Better technology stack enables an organization with capabilities that can help in acquiring, retaining, and making customer’s buying decisions easier, while at the same time reducing marketing and advertising spend. Digital tools enable your customers’ lives easier and make you look better in front of your competitors. Businesses that offer an outdated and clunky experience have trouble competing with those who innovate and stay updated with modern technology. Digital Transformation also helps in improving Customer Experience that is the most important need of today’s time.
4) Enhanced Customer Experience
Image source: https://www.sap.com/dmc/exp/4-ways-leaders-set-themselves-apart/index.html
The commitment to Digital Transformation pays off. In a recent survey, 70% of leaders say that they are already seeing increased customer satisfaction. One of the major objectives of DX is enhancing the customer experience using technology. Increased focus on customers’ wants and needs, customer service is improved consistently throughout all touchpoints and channels. As per a Gartner report, more than two-thirds of companies admit they are competing mostly on customer experience. CX or Customer Experience has become the new battlefront for organization growth.
5) Innovation in business/technology
Digitalization creates opportunities for industries for new product development and service offerings that would have not been possible to create in past. DX has allowed to innovate better and find new niches to expand the business. It is not limited to big players like Amazon and Google, even legacy firms have begun to create new businesses that were beyond their core competencies in past. AI/ML adoption can help in creating new products and offerings by understanding market needs and customer behavior.
