Why digital transformation is important to businesses
Change and transformation has been the norm in business for well over a decade, as organisations realise that standing still is no longer an option.
Now, the pace of change in the digital space has reached a whole new level – and companies recognise that adopting digital ways of working is crucial for survival.
Here are our five reasons why digital transformation is so important to business today…
1. Protecting your business model
In any business we strive to stay one step ahead of our competitors, and in the digital space the competition can come from anywhere. So often today, new ‘disruptor’ brands appear out of nowhere with a new business model that shakes up the market.
From online comparison tools to Amazon and Uber, industries can be decimated by these new approaches. Savvy companies today have a team that’s dedicated to market insights, that seek out potential new ventures or directions. Some even focus on buying up the disruptor brands to reap the benefits of their revolutionary plans.
2. Efficiency and effectiveness
Perhaps the fundamental driver of digital transformation is the recognition that new technology speeds up processes and drives efficiency. Think back to how much slower business life was before email and the internet!
Automation is being embraced in all kinds of sectors, where artificial intelligence means decisions can be made in seconds to boost productivity.
Harnessing the data and knowledge within your business is a key focus too, to learn from your past experiences and adapt to the future.
There’s no question today that the right technology investments will drive down costs and timescales in the long term.
3. Meeting customer expectations
One of the key drivers of change is a shift in client and customer demand. Often, expectations are set by another sector or industry, which lead your clients to seek the same experience from you.
Being able to track our incoming passenger flight on an app, for example, might lead us to expect the same service from a logistics provider or rail company.
It’s important to keep an eye on your own experiences as a customer in thinking about your transformation.
4. Getting future ready
There’s a blistering pace of change in the digital space and companies must keep up to remain competitive. There’s plenty of commentary about the ‘next big thing’ in every industry, whether it’s blockchain, smart mobility or the Internet of Things. Should you be taking steps now to prepare your infrastructure for what’s next?
Even if you choose to follow, rather than pioneer, the new direction, the groundwork in upgrading systems and processes can take more time and resource than you might think.
5. Fighting off the competition
Another vital factor in digital transformation is how advanced your competitors are. If they’re vocal in your trade media and in blogs on their website and social media, this can be a great source of insight into their next direction. Use your industry contacts to get a sense of new initiatives, to keep you on the front foot.
Be aware too, that as they embrace technology and reap the efficiency benefits we explore in point 2, their prices could begin to gain the edge over yours.
WIL Group places Digital Transformation executives in organisations all over the globe. To tap into their insights and expertise, contact us today.