Digital transformation has become such a buzz term recently that many people might not understand what it is. Despite what many might believe, digital transformation is not simply switching from in-person offices to working from home or storing files on Google Drive. Sure, these are factors in what could be a digital change in the work environment but it goes far beyond just having a few virtual meetings on Zoom.
What Is Digital Transformation – Let’s Get Down to It
In simple terms, digital transformation incorporates technology into the operations of a business in order to create a new – or improve an existing, business process. This ultimately affects all factors of the business – from the business culture to the customer experience because the goal is really to provide more efficient customer service. A great example of this is streaming services such as Netflix or Hulu. These services replaced brick-and-mortar video rental stores and now offer on-demand content while also gathering data to provide an even more personalized user experience.
Where you once had people going in search of new movies, renting a cassette or disc, you now have access to tons of content. Over time, data from all these viewers have been used to not only create personalized recommendations within the applications but to also inform content creators of the best types of content to push out.
What’s In It for Your Business?
Life is ever-changing and all businesses, no matter the industry, need to be adaptable to these changes in order to survive. Digital transformation can reduce business expenses, allow companies to reach a wider audience, increase brand loyalty and even open new avenues for income. The COVID pandemic reinforced this. The companies that were able to stand out in the initial stages were those who already had a digital transformation strategy or had already started to integrate technology into their operations.
Some advantages to digital transformation are:
More effective data collection: Businesses are constantly collecting information from customers – contact details, feedback, preferences. By utilizing available digital tools, this information can be used to create personalized ads or to more easily reach your ideal customers. Rather than waiting for customers to come to you, you can reach them on social media through targeted ads or send an email making recommendations for products and services they need. You can use key insight to inform your communication strategy and even what items or services to focus most heavily on providing.
Lower expenses and increased income: Most traditional forms of advertising cost a huge chunk of money. Digital media ads can run you a small fraction of this cost while having a greater impact because you tailor your content to the specific group of people being targeted. Service providers such as marketers or consultants can offer their skill to a wider group through virtual platforms. Retailers can expand their customer base with e-commerce options. The best part is that each aspect of these interactions give you more insight that can be used to improve your communication approach or what you offer your customers which leads to higher customer retention. Your customers are quite literally telling you what they want and you simply have to meet this demand.
Greater productivity: With so many companies now allowing their teams to work from home, the importance of using technology to streamline has become even more clear. According to Leftronic, 90% of companies use a form of Cloud service. These services allow team members to easily access information no matter where in the world they are. Many manual tasks are also able to be automated using the right tools giving employees more time to focus on other aspects of the company. The constant changes to operational hours for companies mean that there needs to be more flexibility in ensuring that key functions can be maintained, no matter what situations might arise. Having a chatbot that can engage your customers outside of operation hours, allowing your team remote access to work material, offering customers a way to make purchases without leaving their homes – all of this can be part of your transformation strategy.
How To Take The First Step
The IDC has predicted that by 2023 53% of all investments in information and communication technology will be in digital transformation. It’s easy to think that the best way to keep up with competitors who are faring well digitally is to just jump in headfirst but that approach will cost you greatly. The most successful attempts at digital transformation come through proper planning and working with a credible digital partner.
Our team has worked extensively with companies both regionally and globally to achieve solid results. We are able to guide you through each stage – from strategy to design, implementation and reporting. Digital transformation is a huge project to undertake, especially for large organizations that already have a functional system in place. You might feel like your company is being left behind because your competitors have already launched a successful strategy but rather than be reactive to their change, focus on what your company needs. The key to achieving successful digital transformation is ensuring that there is a proper strategy and a well-experienced digital partner can give you a necessary advantage.
Many attempts at digital transformation are unsuccessful in their initial stages because of improper planning. In order to achieve your objectives, you need to have a strong strategy in place and an experienced team to lead the charge. Aligning with the right partners can set you up for success. Let’s have a chat to see if our team is the right fit for you!