What is Digital Transformation for Businesses? Read the complete article to know more!
Companies are incorporating computer-based technologies into their products and processes in an increasingly digital world to better engage with the workforce and customers. This process is known as Digital Transformation or DT for short; it allows organizations to compete against other businesses and rise above them by implementing new ways of working that will attract talent from all over who want access to technology.
Businesses today face many challenges, including cost-cutting while still delivering high-quality services, which can be difficult when using older methods like paper-based workflows.
When looking at shifting from a traditional organization of old-school thinking, everyone must understand their role in this new world. A digital transformation will require them all to take on different skill sets and roles so they can continue doing what works best for customers while staying efficient enough now and down the road!
Importance of Digital Transformation or Innovation:
Technology has revolutionized the way we live our lives. The principal driver behind this digital transformation is artificial intelligence (AI), cloud computing, and mobile technologies like smartphones that have changed how quickly data can be collected from various sources; analyzed in real-time with an ease-of interface for consumers who want personalized products or services based on what they need at any given moment–allowing companies to serve their customer bases better while also generating new revenue streams.
The need for transformation is exemplified in the often-cited case of Blockbuster LLC, which had been a global entity with video rental stores throughout America and around
the world. But its presence and relevance precipitously declined from about 2005 onward as Netflix and others harnessed emerging technologies to offer highly profitable streaming services that were increasingly favored over traditional DVD rentals.
How Digital transformation benefits for your Business:
Transformation initiatives offer many advantages to organizations. They include the following:
1) Digital metrics for success enable better service delivery
2) Businesses can optimize their operations with more precision
3) The ability of IT teams is enhanced as they’re able to monitor performance from the end to make improvements
4) Rising revenue enables companies to create jobs
5) Greater customer satisfaction drives conversions which lead to higher profits
6) Metrics provide an increasingly accurate picture of what’s happening within your business, so you know if there are any problems or opportunities before it becomes too late.
Obstacles to digital transformation road map:
The following are the most common reasons experts cite for why digital transformation failures happen:
- Lack of employee engagement
- Inadequate management support
- Poor or nonexistent cross-functional collaboration
- Lack of accountability
- Data privacy and security concerns
- Budgetary constraints
- Limited in-house skills and expertise
- Regulatory and legislative changes
- Immature digital culture
How to measure your digital transformation ROI:
The journey to becoming a digitally transformed organization is an ongoing one with many different facets that need attention. One way you can measure your progress on this broad undertaking is by looking at what investments are delivering returns and which aren’t so much worth it for the company in question – though we all know there’s no single answer here!
Follow the steps to measure your digital transformation ROI:
- Identify the objectives or goals of a particular initiative that supports the organization’s digital transformation strategy.
- Determine the components and associated costs to deliver on the initiative.
- Define the metrics that will determine whether and how well the identified objectives and goals were achieved, using those compared against costs to determine ROI at various points along the organization’s transformation journey.
Although digital transformation can be a daunting task, it is important for businesses to undergo the process in order to stay competitive and relevant. By understanding the benefits of digital transformation and following a road map, companies can successfully measure their ROI and see tangible results. If you’re looking for help with your digital transformation journey, don’t hesitate to contact BeeSeen Solutions today. We’ll work with you every step of the way to ensure that your business is on the cutting edge of technology.