Many business owners try to figure out how to apply digital transformation amid all the buzz about it. It can take numerous shapes from online payment to labor automation, encompassing concepts like Industry 4.0, Predictive Maintenance and Digital twins. Therefore, a company should aim to implement digital transformation in order to remain competitive and efficient.
Then, how exactly should a company leverage digital transformation in order to build a competitive advantage?
A competitive company should strive to highly optimize its processes. The capacity to design solutions for efficiency improvement is the clearest illustration of how digital transformation provides a competitive advantage. One does not have to be a manufacturer to see the value in using digital technology to improve operations and harvest the benefits of greater process structures.
For example, an AI-based tool for translating voicemail to text will improve the company’s administrative function, enhancing overall efficiency. Furthermore, even simple digitalization of sales procedures saves time and resources for the sales force, which only then can be fully focused on building customer relationships.
The benefits of Digital Transformation:
- Increased customer satisfaction:
Providing a good customer experience is the best approach to appeal to consumer loyalty. According to a PWC survey, more satisfied customers demonstrate a higher tendency to pay more for services and products. Actually, a company can make its customers happier by providing a platform for customers to share their feedback. Buyers worldwide are accustomed to using digital devices to manage the bulk of their lives. As a result, a business having a digital presence is more than essential. It is a must that allows the company to communicate with its target audience. Furthermore, big data adoption may assist businesses in better understanding their consumers and delivering the best possible service to them. - Improved company efficiency:
Employees are the lifeblood of a business. Creating a well-optimized and progressive working environment would immediately lead to improved performance. The present market for digital accelerators offers a wide range of cost-effective solutions for practically every aspect of business processes. The digital workplace is the “one-stop-shop” for all the employees in the sense of tools they would need daily – group chat applications like Slack and Blitz, project management platforms like Podio or Trello, and larger and more sophisticated applications like CRMs. Of course, if businesses do not focus on effective and speedy adoption of these technologies, the integration of so many productivity-boosting digital tools might backfire. - Widened partnership opportunities:
Digital transformation allows companies to join exclusive groups of like-minded potential partnerships. By removing constraints such as location and time, a digital implementation may provide companies with attainable prospects, which before seemed to be impossible. Business owners can find new partners and markets in other countries due to digital transformation.
Digital transformation will also influence the company’s brand. Successful use of technological breakthroughs may help companies project a progressive image, allowing them to be perceived as modern and forward-thinking industry leaders.
The way forward
There is a significant tendency among businesses to incorporate technology to increase efficiency, productivity, and future opportunities. Almost every young company and startup design their business strategy from a technical aspect. With that being observed, if businessmen do not want their businesses to stagnate, it is time to think about how digital transformation might help them gain a competitive advantage. Being leaders, it is their responsibility to acknowledge the benefits of digital transformation today so their company could enjoy the prosperity of tomorrow.
