5 Facts How Digital Transformation Can Make Businesses Grow BetterMarch 18, 2020
In order for businesses to grow, digital transformation is necessary.
Digital transformation is a change in an organisation’s business model that focuses on delivering value to its stakeholders or clients, enabled by the use of technology. This trend requires businesses to continually raise the status quo, take risks, and accept challenges.
Worldwide spending on the technologies and services that enable the digital transformation (DX) of business practices, products, and organizations is forecast to reach $2.3 trillion in 2023, according to a new update to the International Data Corporation Worldwide Semiannual Digital Transformation Spending Guide.
The research shows that increasingly, the digital transformation process is being viewed as a long-term investment, with initiatives set to take over a 50% share of worldwide technology investment by 2023.
The effective use of new digital technologies is proving to be a performance driver for business globally.
Here are 5 key facts that explain the success of the business digital transformation initiatives:
1. Upgrading daily tools for support
Empowering employees to utilise new methods, like digitising day-to-day tools and processes, works to the businesses’ advantage.
By implementing digital self-services technologies for employees and business partners, daily processes become streamlined. One main example is adopting digital tools that make documents and information more accessible across company operations. Internal business processes become more efficient and flexible, with the ability to scale as the business grows. Over time, digital transformation produces the tools to generate time and resource gains, strengthening business partnerships.
2. Empowering employees to be more productive
The implementation of automation and streamline processes, along with the development of an agile operating model plays an important role in making employees effective in their jobs.
As digital business requires new ways of working as well as changes to the organization’s overall culture, employees must be empowered to work productively and keep up with the changing pace of business.
3. Building opportunities to strengthen partnerships
Business leaders have important roles to play when it comes to implementing advanced control systems and letting go of old practices. Since not all leaders will have the experience to support or enact such changes, dedicated leadership-development programs could help leaders and employees alike to make the necessary shifts in mind-sets and behaviors.
Research suggests that success requires both leading digital-savvy managers and a workforce with the capabilities to make a digital transformation’s changes happen.
4. Making decisions faster
Businesses that have access to big data have big responsibilities. Learning to value data analytics and converting them into insights are essential business strategies. But to make them effective, we need to move away from traditional channels that support only one-way communication (company-wide emails, for example) and toward more interactive platforms (such as internal social media) that enable open dialogues across the organization. Another key to better communication is developing more concise—and even tailored—messages for people in the organisation, rather than lengthier communications.
5. Developing better communication
Better communication has always been a key success factor in traditional change efforts, and it is just as important in a business transformation. Education and training are keys to help employees understand where the organization is headed. Explaining to your people why the company is implementing the changes is important. This digital transformation should be tangible and digestible for them so they can do their part.
How to get started with digital transformation?
For organisations that understand how fast they need to transform, the increase of opportunities is vast. By making technology do its work in automating the organisation’s processes, the productivity of the workforce across the admin department, middle and front lines will definitely improve.
An effective digital transformation gives your company the ability to respond quickly to uncertainties and ensure that your business is ready for minimising disruption and maximising opportunities for innovation.