The digital transformation process is very complex and full of challenges. However, the benefits of digital transformation for businesses are extremely large. Especially, in the current era of 4.0 technology, your business will face the brink of survival in today's fiercely competitive market. Therefore, to help you have more strong motivation to start your digital transformation journey, we have listed 10 benefits digital transformation brings to businesses below. Let's follow along.
Enhance customer experience
In this era, customer needs are increasingly diverse, and service experience requirements are also increasing. Many customers want to use personalized products to have a better shopping experience and feel a strong connection with the business.
Therefore, digital transformation plays an important role in helping businesses collect detailed customer data, easily analyze data and make accurate decisions. Thanks to the benefits of digital transformation, businesses can optimize user experience, improve satisfaction and meet increasing customer expectations. Thereby, businesses not only build close relationships with loyal customers but also promote sustainable development in the future.
Applying digital transformation helps improve customer experience
Optimize business processes
The benefit of digital transformation in businesses is optimizing business processes. From the application of digital technology, manual tasks have now been automated and deployed accurately and intelligently, helping businesses save time and costs. In addition, digitizing business processes also helps businesses control errors, promote production processes and increase productivity.
>>>> Maybe You're Wondering: Where does digital transformation start?
Reduce costs, increase company profits
Applying digital transformation gives businesses advanced and useful tools and software to operate the company and its activities. Employees can take advantage of modern technology to optimize work productivity, have time to focus on important tasks and improve professional capacity. This contributes to reducing production costs and general expenses. At the same time, human resources will also create more value, managers focus on identifying new ways to make better profits, helping to increase revenue for businesses.
A 2023 report from global consulting firm McKinsey & Company, quantified the benefits that AI technology brings. Experts estimate that about half of all work activities that exist by 2023 could be automated in the future with AI. The report also notes that AI could “enable labor productivity increases of between 0.1 and 0.6% annually, depending on the speed of technology adoption and the reallocation of workers' time to other activities.”
Digital transformation helps save costs and increase business efficiency
Improve product and service quality
Product and service quality will be the strength for businesses to compete in the market. When digitally transforming, the benefits that businesses receive are a closed production process, good control of product and service quality. Applying digital transformation technologies will help the product lifecycle management (PLM) process significantly improve. Businesses can streamline the product development process while providing stakeholders with access to the most accurate data appropriate to their roles for consistent, rigorous quality control.
Increase competitive power in the market
Digital transformation for small and medium enterprises is the key to shortening the competitive gap with long-standing large corporations and companies in the industry. When digital transformation is done right, transformation initiatives give organizations the ability to quickly identify customer needs, market trends, and new opportunities for growth. Since then, the business has continuously produced quality products and services, improved customer experience and strengthened its competitive position in the market.
As Mr. Raja Ranganathan, chief growth officer at Randstad Digital, asked, “When my customers want something and I don't deliver it, why am I in business?” The answer to this problem is that organizations that lack the ability to meet market needs will find it difficult to survive in today's market. Therefore, leaders need to encourage the entire company to transform digitally to change the way it creates value and delivers to customers, promoting sustainable efforts.
Successful digital transformation helps businesses increase their competitive position in the market
Control and manage data information effectively
The benefits of digital transformation are not only increased productivity and competitive position, but also support for consistent and effective control and management of data and information. Instead of being scattered across many different software and databases, digital transformation can integrate applications, software and databases into a centralized repository. Thanks to that, businesses can manage resources more strongly, easily analyze, make accurate decisions as well as reduce supplier overlap.
Increase flexibility and agility for businesses
Another benefit of digital transformation is that it helps organizations become more flexible and responsive. Instead of applying manual methods and traditional production processes, increasing flexibility with technology and digital transformation helps improve speed to market, creating new opportunities. Besides, digitalization supports shortening product life cycles, applying continuous improvement (CI) strategies, anticipating challenges and building solutions quickly. Thereby, allowing businesses to innovate, adapt quickly to market changes and increase their ability to survive.
Increase transparency and efficiency in the management system
Thanks to digital transformation, managers can easily evaluate employee capacity and productivity. At the same time, the management system in the enterprise is also operated effectively and transparently, creating fairness in evaluations. Businesses can build detailed reports on the working situation, sales, productivity, and capacity of each employee and department.
In addition, digital technology helps managers have a more intuitive view, supporting making appropriate decisions for subordinates as well as the entire company. Ensure transparency and fairness in the human resources management process.
Digital technology supports the effective operation of the management system and ensures data transparency
Promote innovation and creativity
The benefit of digital transformation in businesses is to promote the spirit of innovation and creativity. Thanks to new technologies applied to the work process, it has helped change internal processes and significantly increase employee productivity. In particular, digital technologies have supported employees in generating more valuable creative ideas, promoting innovation in ways of working to achieve greater success.
In a recent PTC survey of executives and their employees, 90% agreed that they would prefer to work for an organization that is adopting and investing in digital transformation technology. This shows that digital transformation not only shapes employee experiences but also motivates them to maintain a culture of improvement, creativity and innovation. Additionally, team members who want to meet the digital culture must upskill and learn digitally to leverage the benefits of digital transformation.
Encourage the building of positive cultures within businesses
Finally, the benefits of digital transformation for businesses are huge as they not only create changes in the technical structure but also contribute to building a positive culture within the organization. Digital transformation allows businesses to create and nurture a proactive culture. At the same time, the working environment that supports convenient exchange between departments also creates a culture of sharing and support...
Through the benefits of digital transformation mentioned above, we can see the importance of how digital transformation affects the development of businesses. Digital transformation not only helps businesses make good progress but also supports sustainable development and maintains competitive strength in the market. Viindoo hopes that, with the above sharing, businesses will understand the true role, importance and benefits of digital transformation so that they no longer hesitate and take action immediately.
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