Digital Transformation has become a hot buzzword in the business world. Influencers describe the benefits and how organizations that don’t transform digitally will be left behind and outstripped by competitors. But what exactly is Digital Transformation?
Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.
Essentially using modern, digital tools to find more efficient, data-driven ways of getting things done at every level of business for a positive impact on operations and service delivery. This can extend to multiple facets of an organization or just involve modernizing one aspect that is so pivotal that it completely transforms the business.
Advantages of Digital Transformation:
1. Eliminating Time-Consuming Manual Processes via Business Process Automation
One of the major advantages of digital transformation is eliminating tasks that unnecessarily waste staff time. By implementing digital technology, you can use software to perform the tasks that were previously being performed manually by staff. Business Process Automation is often seen as the stepping stone to a more holistic digital transformation but it can also be one of the outcomes.
Some key areas of digital technology can be used to reduce manual labor:
Customer data collection
Email and push notifications based on triggers
Update to services
Tech support ticket creation
2. Increasing Customer Satisfaction via Improved Customer Experience
Automating these tasks also improves customer and staff experiences as they’ll see much faster turnaround times when they have an inquiry. One of the advantages of digital transformation is enabling customers to access your services and support via their preferred method of interaction.
By leveraging digital tools, you can enable omnichannel support, allowing customers to reach out via phone, website live chat, email, mobile app, or through a support forum. By keeping it all digital, companies can provide multiple touchpoints, track interactions, and facilitate follow-ups and feedback gathering from customers.
3. Improved & Efficient Decision-Making Through Real-Time Data Collection
Software-focused, digital processes open up a level of visibility into what is working well and what can be improved. With all data being housed digitally, often in real-time, it makes recognizing patterns and identifying opportunities for enhancements much easier.
Central data repositories can be mined to gain insights on where there are bottlenecks in workflows, which issues resurface the most, employee performance, customer preferences, and behavior, and many other areas. Once a business is using digital tools and develops processes around them, they are much easier to produce reports on and pinpoint areas for improvement as opposed to traditional surveying, sampling, and manual feedback collection.
4. Increased Flexibility and Scalability
A major advantage of digital transformation is breaking free of restrictive legacy systems and leveraging modern, scalable alternatives. Existing processes in businesses are often based on old technology which requires manual input – creating bottlenecks when workloads spike. Some manual processes simply won’t scale as more and more employees need to process claims, service requests, provide support, or complete other business functions.
5. Enhanced Reliability and Reduced Risk
As organizations continue to grow, the technology and processes that they’ve relied on for your years can start to fail them.
From a technical standpoint, it can be harder to back up, maintain, and protect data within older systems. This can make them more prone to failure or an easier target for cybercriminals.