Did you know? The global digital transformation market is projected to grow by 16.5% each year and reach a total value of $1 trillion within five years!
That’s a pretty staggering number, and it goes to show just how important digitalization is for businesses of all sizes. According to Gartner, IT spending will reach $3.9 trillion this year as the COVID-19 pandemic continues to serve as a catalyst for digital transformation in nearly every major industry.
Not only that, emerging technologies – such as 5G, the Internet of Things (IoT), and artificial intelligence – will play a significant role in shaping our future.
So how exactly does digitalization benefit your business? Here are a few key areas that can make all of the difference.
Top 10 Ways Digitalization Can Help Your Business Grow
1. Increased Efficiency and Productivity
Technology has always been a driver for efficiency. And with the ever-changing digital technology landscape, it’s more important than ever that companies ensure that their systems and processes are designed to enable employees to work smarter and not harder.
Adopting the latest technology like the cloud, mobile devices, big data, and analytics can help businesses achieve higher levels of efficiency and productivity. Not only that, some companies are using AI and machine learning to automate and scale data-intensive tasks and business processes.
The retail industry is expected to experience significant growth, with 80% of business executives claiming to adopt AI technology between 2020 and 2027. (Fortune Business Insights, 2020). Furthermore, 40% of businesses use the digital model to improve work efficiency.
Image Source: Financesonline
2. Better Resource Management
It is vital to have the right resources in place in a competitive market. Businesses need to maximize their resources for optimal growth, from capital and labor to suppliers and inventory.
Cloud computing has been adopted widely to support resource sharing across different departments within organizations from an IT standpoint. The cloud also enables businesses to pay for only the resources they need, making it an affordable option.
In addition, the internet of things (IoT) is helping businesses track their resources in near real-time, giving them greater visibility into how they are being used and where improvement is needed.
IoT development companies have been developing platforms that can manage and monitor resources across industries, making it easier than ever for businesses to get the most out of their resources. In 2017, the technology reached a market revenue of $100 billion for the first time, and forecasts indicate that this figure will rise to around 1.6 trillion by 2025.
Image Source: Statista
3. More Resiliency and Agility
The world is rapidly changing, and businesses need to quickly adapt to new market conditions. To do this, they need systems and processes that are agile and responsive.
Technology is an enabler for business agility. Companies can leverage new technologies like IoT and blockchain to develop highly resilient business ecosystems. Blockchain, for example, is helping companies streamline their supply chains and manage information more efficiently.
You can hire a blockchain development company to build a custom blockchain application according to your specific needs. In fact, the United States is expected to spend $4.2 billion on blockchain solutions in 2022, making it the largest regional spender.
4. Better Digital Presence
To be successful in today’s digital age, businesses need to have a strong online presence. This means having a well-designed website and being easy to navigate, active on social media platforms, and engaging with customers online.
Having a solid digital presence helps businesses drive leads, improve conversions, and strengthen their brand awareness among consumers. However, companies must integrate digital into their overall marketing strategy rather than viewing it as an isolated initiative.
You can even hire app developers to create an app for your business requirements. This will help you get better in touch with your customer with ease.
5. Improved Customer Engagements
We live in a highly competitive and saturated business environment. To stand out, businesses need to engage with their customers meaningfully.
Technology can help businesses do this by providing them with the tools to understand their customer’s needs and wants. Data analytics and AI, for example, can be used to create customer profiles, which can then be used to provide personalized customer experiences.
Businesses can also use social media to engage with customers by providing valuable content and answering their questions. Additionally, companies can use chatbots to offer around-the-clock customer support.
6. Increased Responsiveness To Business Needs
The market is constantly evolving, and businesses need to make sure they can keep up.
Top companies today deploy IT systems with built-in flexibility and scalability, which allows them to stay agile and respond quickly to emerging business needs. Businesses need to invest in their technology roadmap to determine their ability to remain competitive now and into the future.
Moreover, companies are also adopting AI-based technologies to perform repeatable tasks, freeing employees to focus on more valuable work requiring human intelligence. Also, robotic chatbots can assist human employees in providing high-quality customer service.
7. Greater Innovation, Creativity & Collaboration
Collaboration is key to a company’s success. To innovate and create new products, businesses need the creativity and collaboration of their employees.
Today’s employees are much more technologically savvy than previous generations, and they expect to use technology in their work.
New technologies like IoT and AI can help companies become more innovative by discovering new business ways. For example, AI-based bots can find hidden knowledge within data and transform it into actionable business insights. Such insight-driven companies can make smarter decisions and identify new revenue streams.
8. Faster Time To Market
Businesses need to bring products and services to market faster than ever before. Customers are exposed to thousands of marketing messages every day, so companies need to stand out from the crowd.
Today’s market is full of innovative startups looking to disrupt traditional business models. Businesses need to be able to sense emerging threats and opportunities early on, and being able to bring products to market faster than the competition is crucial for staying ahead.
To quickly develop and deploy new technologies, businesses need digital transformation skills across their entire employee base. Implementing a holistic enterprise-wide digital strategy ensures that all business functions from R&D management to sales are working together to achieve the common goal of faster time to market.
9. Increased Revenue Opportunity
Digital technologies can increase a company’s revenue by helping them reach new markets and customers.
For example, businesses can use big data analytics to identify new market opportunities and potential customer segments. They can also use data-driven marketing techniques like predictive analytics to create targeted marketing campaigns.
Additionally, businesses can use AI-based bots and personal assistants to provide personalized customer service and help customers find the products they are looking for.
10. Increased Transparency and Visibility
To make informed and timely decisions, businesses need accurate and up-to-date information.
A lack of transparency can cause companies to fall behind the competition. To keep up with the latest trends, businesses need to see what is happening in their industry and customer base.
Digital technologies can help businesses increase operational transparency by providing a single source of truth that all functions can access and trust. This allows for better decision-making, more effective business processes, and a more robust overall company culture.
The reason why 39 percent of CEOs have prioritized digital transformation for their CIOs (CIO, 2020).
Image Source: Financesonline
Digitalization benefits are numerous and can be applied to businesses of all sizes. Companies can improve their competitiveness, increase revenue, and become more efficient by embracing digital technologies. To fully reap the benefits of digitalization, however, companies need to have a clear strategy and ensure that all employees are on board with the changes.
Q1: How does digital technology benefit a business?
A1: A business’s income and profits depend on how it operates. Digital technology can help improve how a company does its work, reduce costs, and access new markets more quickly than its competitors. This is generally called digital transformation or digitization of business.
Q2: How do I know if my business is ready for the digital tide?
A2: If you are unsure, there are three things to look out for.
1) If your customers are using digital technology
2) if you can use it efficiently
3) if your competitors are using it rapidly.
Q3: What exactly is digital transformation?
A3: Digital change that brings new business models and ways of working, often enabled by technology advances such as mobile, cloud, big data and analytics, social media, and the internet of things.
Digital transformation is essential because it can help your business become more competitive. It involves changes to your business model, operations, and culture. Besides, it’s not just about using new technology but also about changing your company’s business processes and goals.
Q4: What is the difference between “digitization” and “digital transformation?”
A4: Digitization means using digital technology to do tasks you have always done – it doesn’t lead to any fundamental changes in how businesses work. Digital transformation goes further, changing whole ways of working. It is about making your business model, operations, and goals more efficient through digital technology.
Q5: What are some of the benefits of digitalization?
A5: Digitalization is helpful in business because it can reduce costs, increase sales, and create new sources of revenue. Digitalization is also beneficial for companies to compete. Many people do online research before buying a product or service. If you are not in the digital world, you will lose sales to your competitors.