Many businesses nowadays are undergoing digital transformation. you are wondering if it is important. Let’s talk about some digital transformation drivers.
Private and public sectors worldwide launch projects on digital transformation. According to studies, 10.4% is the projected growth for global spending of such technologies and services. That is equal to $1.4 trillion in 2020. By 2023, studies expect that global spending will reach $2.3 trillion.
Let’s take a look first at the definition of digital transformation. So we’ll understand why companies invest in this technology
Definition Of Digital Transformation
According to a source, it is “reshaping industries by disrupting existing business and operating models”. Whereas, it involves using digital technologies. That is to make a process more efficient and effective.
The digital transformation is not to replicate an existing service to a digital form. It is to transform that service into something better. Furthermore, it also involves using digital solutions at the ‘heart of your business’.
Furthermore, it is not enough to install technologies. It changes how a business operates. It involves changing the processes and culture of a business. That includes company operations down to how your clients receive your services.
In simple words, it changes everything from how a company operates up to its culture.
Digital Transformation Drivers
Technology is booming every single day. It is like new technology and reengineered processes are being released every day. Furthermore, this affects the workplace and how the work gets done. As a result, the competition gets tighter. Businesses need to transform. Otherwise, they will lose their competitive advantage. Let’s take a look at these three digital transformation drivers.
Customer Expectations
“The customer is always right.” All businesses live up to that quote. Yet, customer expectations continue to rise. Customers are expecting 24/7 availability and a personalized experience.
According to Tyler McDaniel, the VP of Data Insights, the empowered customer is savvy. Moreover, customers expect a personalized experience. 80% of customers are more likely to buy. That is when brands offer personalized experiences.
Yet, 80% percent of customers express frustration. That is when there is no personalized experience.
Insights Are More Important Than Ever
Businesses must understand their customers to live up to their expectations. Furthermore, such understanding needs strong data insights. Good businessmen understand their customers.
They spend huge amounts of energy doing that. Moreover, good businessmen don’t rely on averages. They study and understand every aspect. This is important so businesses can give a personalized customer experience.
Digital Transformation Can Mean Growth Or Decline
As we have mentioned earlier, technology advances fast. Organizations must undergo digital transformation to survive. Furthermore, transforming improves the efficiency of processes. Additionally, it opens new opportunities that were not available before.
Digital tools can help companies understand their customers better than ever before. Also, their industry and competitors.
Benefits of Digital Transformation
- Access to tremendous amounts of data.
- Increased collaboration across departments
- Enhanced customer experience
- Improved agility and innovation
- Developing new skill-sets
- Enhanced operational efficiency and lower costs
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