More business is conducted online than ever, and companies that recognize the need to develop a digital transformation strategy to meet Millennials and younger people where they are can benefit.
Companies and institutions of every size have been affected by the pandemic and challenged to take a hard look at developing a digital transformation strategy faster than anticipated. For those that choose to make this strategic shift, there are some undeniable benefits.
How important is digital transformation across all sectors?
Developing a digital transformation strategy involves rethinking and reimagining how work gets done and how you reach your customers. It involves your people, processes and the tools or technologies you use. Does it impact all sectors? The answer, for the most part, is yes.
The one key takeaway from the pandemic is that virtually every company or institution in every sector was impacted, regardless of company size or location. The pandemic, and other events, has driven online business activities up by 27.9% since 2020. This trend will only continue and likely at an accelerated pace.
A recent State of Tech Spend Report by Flexera shows 56% of CIOs agree that digital transformation initiatives are a top priority in 2021, up 2% from 2020. Why is this a top priority? There are five undeniable benefits.
Digital transformation strategy benefits
1. Increased productivity and reduced mental stress
With most teams working remotely these days, this has become especially necessary to increase productivity and mental wellness for employees. Developing a digital transformation strategy that involves adopting digital technologies, such as artificial intelligence or other online tools, ensures processes can be streamlined or enhanced to reduce workarounds. Digital technologies help to automate routine work and smooth workflows. It reduces manual effort, reduces errors and improves productivity. Team time to complete tasks is reduced, freeing up more time to focus on higher-value work.
2. Increased agility
With increases in automation and improved productivity comes greater agility. It’s only in developing a digital strategy that companies can truly become agile within projects and operational areas. Addressing the use of digital technologies that do the heavy lifting throughout your processes ensures teams across your entire organization can become agile. This speeds up deliverables, information, reporting and decision-making.
3. Increased customer engagement and satisfaction
Today, most millennials interact online, and they make up a significant demographic. That means your company has incorporated digital platforms into its strategy. Adopting a digital transformation strategy can meet their changing needs and expectations. It places your business where customers are: on social media, self-service platforms, engaging with them using chatbots and other tools. It’s about customers and how they see your business, making it easier for them to shop, bank, interact, and do business much more effectively and efficiently.
4. Increased opportunities
Opportunities are abundant, but so are competitors. It’s in developing a digital transformation strategy to identify and address change and challenges that your business can be better positioned to take advantage of opportunities. Almost 85% of business executives say that new business opportunities have emerged throughout their digital transformation efforts.
Rethinking current strategies helps unearth ideas and opportunities that may not have been possible before—and the tools that can help make them a reality.
5. Higher levels of profitability
Almost every company dreams of growth and increased profitability or they wouldn’t be in business. A digital strategy can provide a roadmap to dealing with uncertainty, the speed of change, changing customer expectations and leveraging the right technologies to increase profitability. About 43% of companies that are considered of high digital maturity report much higher net profit margins than the industry averages.
Developing a digital transformation strategy can pave the way for these desirable benefits; it just requires a vision for change and factoring in the right ingredients of digital transformation success.