10 Advantages of driving Digital Transformation in your organization
The advantages can be broadly classified into three major themes.
Organizational efficiency
1) Shifting from traditional to new-age technologies
Usually, the biggest challenge any organization faces is CHANGE MANAGEMENT. They fear failure and uncertainty that would come by transitioning from a traditional approach to a digitized approach. There has always been reluctance due to the tendency to avoid change and skepticism regarding ROI for the implementation that the change would create. However, as we see it today, during these pandemic times the firms which had accelerated digital transformation were resilient and able to get value-driven opportunities even at their lowest times.
2) Make Better Decisions
Big data, sophisticated analytics, and capabilities help in attracting leads and target audiences based on organizational goals. By the power of a result-driven approach, it will provide you insights to make effective decisions on attracting customers and offer better services.
3) Re-engineer your processes
Strong process mining & analytics powered Digital Transformation helps in identifying friction points or bottlenecks in the processes and opportunities for automation to streamline your processes. This would mean leaner processes with redundant or low-value activities being automated.
Customer-Centric Approach
4) Enable focus on Customer Centricity
Digital transformation does not just improve the internal processes of the organization but also enables a customer-centric approach. In today’s world, customer expectations are rapidly evolving. They expect personalization, immediate responsiveness, and seamless interactions across different channels.
5) Reject the traditional trade-off between boosting efficiency and serving clients
Well, in earlier times, there used to be an internal trade-off that firms used to face of choosing either excellent services or managing their efficiency in the most optimized ways. But, no more! Digital transformation helps to cater to both the goals of the firm. It ensures high-quality processes with better customer services. Using scalable models, a reduction in 50% cost per customer, and 305 profit per customer can be achieved. You can read the BCG case study here.
6) Achieve a better CSAT score
Customer centricity does not mean offering discounts or low fares. It revolves around the holistic improvement of customers’ expectations and experience. Customers expect ease of use or switching between products/services. They also expect excellent onboarding experience with fast cycle development of products that fully function at launch. Post the purchase, they expect quick, error-free services and consistency in them. Digital Transformation is the answer to such high demands.
Cost Reduction
7) Increase your credibility, trust, revenue and reduce the cost
As we digitize our data, it becomes easier than said to manage and find the scopes of improvements. Even basic analytical approach like Trend analysis and descriptive analytics would help the firm to find the areas that would enable them to achieve more than they promised.
8) Ensure there are no Revenue Leakages
The clear demarcations and insights from the analysis of digitized revenue data help in more than one way. It not only enables us to bring our focus on high revenue-generating channels but also highlights the probable revenue leakage.
9) Streamline your staff and management
By streamlining and re-engineering the firms can drive the low-value transactions by alternate channels. This enables less staffing required during back end jobs. The majority of the sales can be gained by the front end client-facing employees. It thus focuses on having excellent client interactions, because people buy from people. Digital channels reduce operational costs and boost productivity by having fewer person staff.
10) Gain Competitive Advantage
A key measure of profitability is the cost-to-income ratio. This can be driven at a very lower rate than the industry benchmark by leveraging the power of digital transformation. As the processes become more efficient, it would reduce the overhead costs involved.
