(4 Min Read)

If there is one theme that is taking over conversations in executive boardrooms across the globe it is digital transformation. While we’re not big fans of spouting industry jargon, let’s put speculation aside and target the elephant in the room — what is digital transformation and why do modern businesses need to pay heed to this buzzword?

As per a recent research report released by the IDC, worldwide spending on technologies and services that enable digital transformation of business practices, products, and organizations is predicted to almost $2 trillion in 2022, expanding steadily throughout the 2017-2022 forecast period at a five-year compound annual growth rate of 16.7%.

Never before have IT strategies been such an integral factor for growth than they are today. The reason is simple — the world we live in is digital. Everything from the way we shop to how we communicate with others around us has changed drastically over the last few decades. Businesses that competing in this modern setup need to be equipped to offer the kind of experiences that reflect an upgradation of their own environment. While this is easy for some businesses, others find it hard to grasp this exponential pace of change often wondering how they can catch up.

Digital transformation refers to utilizing the speed, agility and flexibility of digital technology to enhance, create, or modify existing processes to meet changing customer expectations and solve traditional problems faced by businesses in a more efficient way. Everything from storing and retrieving information, using data to power satisfying customer experiences throughout the value chain, to enhancing day to day processes with greater efficiency is made possible by making the shift from analog to digital.

But more than anything, digital transformation is essential for businesses to stay competitive in the new world. Here are five reasons why digital transformation is critical to any growing business.

Empowering your employees to contribute directly to the bottom-line
Traditional workplaces restrict the growth and development of your workforce by limiting them to manual tasks that are far from efficient. Digital technology takes a huge load off of your skilled workforce freeing up their time for more complex tasks. Every department, right from finance to HR to infrastructure can benefit from automating redundant tasks. It gives employees the opportunity to focus on improving customer experiences that in turn have a direct impact on profitability.

Ensuring your data is safe and secure from any real or perceived threats
One of the biggest risks of modernization is the threat it poses to customer and organizational data. In fact, nearly 60 million Americans were affected by identity theft in 2018 alone. This makes data security and privacy a major concern for organizations looking for new ways to keep data safe from predators. Progressive businesses need to keep security at the core of their transformation keeping it consistent and reliable across networks, applications and data, with a cohesive strategy that is resistant to all forms of risk.

Delivering an always-on customer experience
Everything from our social media accounts to our growing online purchases are a fitting example of today’s instant gratification culture. Customers today expect a similar experience from the businesses they engage with. Customer experiences are no longer about satisfaction, they’re about ensuring delight. Relying on traditional methods of customer engagement is no longer good enough. Businesses that are interested in taking their growth to the next level need to rely on immersive web and mobile applications to power stellar customer experiences.

Learning from your own data to make informed decisions for the future
Data is the new currency. The coming of digital technology has made it possible for businesses to capture every single interaction executed on their platform making it a treasure trove of information. But all this data is pointless without devising a systematic plan that can break it down into insights that power future decision making. Businesses that are poised for growth need to utilize digital data to fuel better customer interactions, optimize spending across functions, enhance efficiency levels of employees, and improve functioning of overall processes in the organization.

Enabling you to keep growing as you enter the next phase of growth
The elements dictating success are very different depending on your stage of growth in the business. With every new phase of growth or additional acquisition, organizations need to restructure and streamline their operations in order to stay profitable and keep growing. Businesses moving from one phase of growth to the next require digital transformation to effectively integrate and modify their processes in an agile and stable manner.

Improved profitability is the ultimate benefit as businesses make a move towards digital transformation. With improved customer experiences, greater process efficiency, and a stable infrastructure, digital transformation can revolutionize every aspect of your business. Quoting Jack Welch, “An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.”
Truer words were never spoken.

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