Navigating Your Business with Digital Transformation
January 19, 2023
By Jason Juliano
Digital transformation is the integration of digital technologies into all areas of a business, fundamentally changing how it operates and delivers value to customers. It is a continuous improvement and innovation process that enables companies to stay competitive in an ever-changing digital landscape. Services related to digital transformation can include:
- Implementing new technologies such as cloud computing;
- Adopting new digital tools and platforms; and
- Redesigning and automating business processes to be more efficient and data-driven.
Facts and Figures on Digital Transformation Outcomes
There are several studies and research reports that have found that digital transformation can have a significant impact on small and medium-sized businesses. Some facts and figures that support this include:
According to a survey conducted by Accenture, companies that have fully embraced digital transformation and technologies have seen five times faster growth than their competitors; According to research by the United States Census Bureau, businesses that have adopted e-commerce have seen an average increase in sales of 43%; and A study by Gartner found that 89% of business leaders say digital is embedded in all business growth strategies.
These are just a few examples of the many studies that have shown the positive impact that digital transformation can have on small and medium-sized businesses. Overall, digital transformation can help businesses increase revenue, reduce costs, improve customer engagement and become more competitive. Key benefits of digital transformation initiatives businesses receive are:
- Increased efficiency: Businesses can streamline their operations and reduce costs by automating manual processes and leveraging digital tools;
- Improved customer experience: Digital technologies can provide personalized and convenient customer experiences, helping to increase loyalty and drive sales;
- Enhanced data analysis: With the help of digital tools, small and medium-sized businesses can gather, analyze and use data more effectively to gain insights and make better decisions;
- Increased competitiveness: By adopting digital technologies, small and medium-sized businesses can level the playing field with larger companies and compete more effectively in the marketplace; and
- New revenue streams: Digital transformation can open up new opportunities for revenue generation, such as through e-commerce or digital services.
How Digital Transformation Can Save Costs for a Business
Digital transformation can help businesses save costs in various ways and across different business areas. Some examples include:
- Automation: By automating manual processes, businesses can reduce the need for human labor, leading to cost savings. For example, automating accounting or inventory management can reduce the need for staff in those areas.
- Improved efficiency: By streamlining business processes and leveraging digital tools, businesses can improve their overall efficiency and reduce costs. For example, implementing a CRM system can help a company better manage its customer interactions and reduce the need for multiple software solutions.
- Reduced IT costs: By moving to cloud-based solutions, businesses can reduce the need for expensive on-premises infrastructure and lower IT costs. This can also help small and medium-sized companies to scale up or down as needed without incurring large capital expenses.
- Increased productivity: By giving employees access to digital tools and technologies, businesses can increase the productivity of their workforce and reduce the need to hire additional staff.
- Better utilization of data: By using data and analytics, businesses can gain insights into their operations and make more informed decisions, leading to cost savings. For example, by analyzing sales data, a company can identify products or services that are not performing well and adjust accordingly.
- E-commerce and enterprise resource planning (ERP): By implementing E-commerce and ERP, digital transformation projects can save cost for businesses by automating processes, improving data accuracy, increasing scalability, improving inventory management, and increasing efficiency – all of which also tend to work to increase sales. These digital systems streamline processes, improve communication, and open up new markets and sales channels, resulting in cost savings and increased revenue.
These are just a few examples of how digital transformation services can help businesses save costs. The areas where a company can save costs depend on the business itself and the digital solutions implemented.
Why Are Digital Transformation Professionals Valuable to the Business’s Success?
Digital transformation service professionals typically have a wide range of expertise in various areas related to digital technology and business strategy. Some of the key areas of expertise that these consultants have include:
- Digital strategy: These consultants help businesses develop a digital strategy that aligns with their overall business goals and objectives. This can include identifying which digital technologies and solutions will be most beneficial for the business.
- Business process re-engineering: These consultants can help businesses redesign their processes to be more efficient and data-driven, including identifying areas where automation can be implemented to improve efficiency and reduce costs.
- Technology implementation: These consultants have the expertise to implement a wide range of digital technologies, such as cloud-based solutions, CRM systems and analytics tools. They can help businesses choose the right technologies and ensure that they are implemented and configured correctly.
- Data management and analysis: These consultants can help businesses develop a data management strategy, including data governance, data quality, and data analytics. They can also help businesses make sense of the data and gain insights that can drive business decisions.
- Cybersecurity: These consultants can help businesses to implement cybersecurity measures to protect against cyber threats and data breaches;
- IT architecture and infrastructure: These consultants can help businesses design and implement IT infrastructure, including network, storage, and cloud-based solutions, to improve their IT operations and scalability.
- Change management: These consultants can help businesses to manage the cultural and organizational changes that often accompany digital transformations to ensure that the implementation is successful and sustainable.
These are just a few examples of the expertise that digital transformation consultants may have. The specific expertise will depend on the consultant or consulting firm and the business's specific needs.