Demystifying Digital Transformation: Part 4 – How it Helps Your Bottom Line
May 22, 2018
If you’ve been following our 4-part series “Demystifying Digital Transformation,” you know by now that DT isn’t just a race to adopt trendy technology. Rather, it’s the result of a series of strategic and incremental changes that leverage digital technology to improve organizational efficiency, processes, and performance.
When it comes to quantifying the benefits of digital transformation, the numbers speak for themselves. Research shows that digitally evolved companies see better gross margins, net income and earnings compared to organizations that have been slower to adopt. In this, the final installment of our 4-part series “Demystifying Digital Transformation,” we look at some of the specific ways digital transformation can help your bottom line.
Digital transformation streamlines and consolidates operations.
Companies that invest in using digital technology to bring together separate interfaces—for example, analytics, project management and CRM—in order to optimize their processes will often find ways to cut costs. Whether eliminating the need for legacy systems, or connecting applications that can share data, the DT process will likely reveal ways to strategically reduce expenditures while driving innovation and sharpening competitive edge.
Digital transformation automates manual or legacy workflows.
Depending on the specifics of your business, using available technology (think: cloud-based services and AI) to replace or automate previously manual processes and procedures can increase speed and productivity. Ultimately, that represents an enormous cost savings opportunity for your organization. Enterprises that digitally transform often benefit from better resource allocation, not to mention the advantages that come with customizable processes and time savings.
Digital transformation improves the customer experience.
Consumers today are savvier than ever. And increasingly, they demand experiences that demonstrate knowledge of their personal preferences. According to one recent study, a whopping 80% of consumers say they are more likely to do business with a company if it offers a personalized experience. By delivering more relevant content, coordinating a seamless multichannel experience, or investing in the right CRM system, companies that use a combination of data and tech to improve the customer experience are more likely to drive loyalty, identify new growth opportunities, and move the needle positively on their business.
Digital transformation reveals new insights and revenue streams.
While DT can help businesses vastly improve what they already do, it can also help launch them into finding new revenue streams and business opportunities. Gathering data, generating insights and then harnessing the power of both can reveal whole new operating models and products for your business. For example, many companies opening up their data as an API (Application Programming Interface) find it accelerates mobile and web application delivery, producing new revenue streams and improving customer experience across the board.
The upshot? Digital transformation is not an endgame; it’s an evolution. Digitally transforming your business requires an all-hands-on-deck investment of a company’s resources, but the pay-offs are undeniable. Organizations that win will be those open and agile enough to adapt to a landscape that demands continual change, with those who are slow to act and even slower to change undoubtedly left behind. Ready to get started? Check out our 9-part Practical Guide to Martech Enablement, written by GeekHive CEO Peter Ladka.
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