When we refer to digital transformation, what we’re really talking about is digital business transformation. Put simply, this is the process of using digital technologies to create a digital culture and a new operating model.
We swear we’re done using the word “digital.” Just kidding . . .
Why should your company consider this initiative, and what could you stand to gain from it? Let’s look at five of the top benefits to consider.
5 Benefits of Digital Transformation
We expect IT spending to continue to climb throughout the next year because it’s become ever clearer that modern technology is essential for this new era of uncertainty. Modern technology can boost productivity, increase profitability, improve the customer experience, and more.
1. Improved Customer Experience
Today’s customer not only expects delivery turnarounds to be lightning-fast, but they want knowledgeable customer service representatives available around the clock.
Delivering on these expectations requires in-depth customer insights. You can gain these insights by implementing enterprise technology, like ERP software, SCM software, MRP software, and a litany of other specialized systems.
Coupled with the right data strategy, modern enterprise systems can provide an incredible level of detail on every facet of customer behavior and every stage of the customer journey.
As you roll out your digital transformation initiative, you can leverage these insights to provide more personalized customer experiences.
The 2022 ERP Report
This report summarizes our independent research into organizations' selection and implementation decisions and their project results.
2. Augmented Analytics
As digital technologies continue to progress, the field of analytics is rapidly changing.
For instance, some technologies are supplementing traditional reporting with real-time business intelligence, machine learning, and artificial intelligence.
One benefit of this augmented analytics is that it’s user-friendly, meaning you don’t need to be a coder to run a query. This makes these platforms more accessible to key team members and stakeholders, regardless of their technical background.
Another benefit is the predictive and prescriptive capabilities of these analytics. While improved business intelligence leads to increased transparency, you may want to go one step further by implementing advanced analytics that can predict likely probabilities and make recommendations for the best plan of action.
3. Improved Efficiency
Even if you’re already operating with well-oiled processes, you probably would like to be even more efficient and productive.
Digital transformation typically involves automation, data integration, and process improvement, all of which help improve operational efficiency and result in cost savings.
For example, many modern ERP systems are designed with preconfigured best practices to help alleviate the burden of manual tasks and lower the risk of human error.
This is not typically true of many organizations’ legacy systems, which tend to be a data nightmare.
4. Increased Flexibility
An agile company is one that can keep up with rapid changes in customer demand.
The right digital transformation strategy can enable your organization to quickly respond to market shifts and changing customer needs. This is possible because digital transformation is often able to create a continuous improvement culture within an organization.
At the same time, digital transformation forces you to upskill employees. In the long run, this is a beneficial investment because it equips your workforce to embrace even more new technology that your organization will inevitably implement in the future.
5. AI-Enabled Supply Chain Management
While companies in all industries can benefit from AI, one sector especially well-suited for AI is manufacturing.
If you’re in this industry and your digital transformation involves AI technology, you can reap many supply chain management benefits.
For example, improved visibility enables quicker, data-driven decisions, such as how much product to order.
In addition, manufacturers can use AI to confirm the accuracy of products listed on a bill of materials. Using image recognition, AI compares the item to the technical drawing.
Achieve Digital Transformation Success
Digital business transformation can be essential to maintaining your competitive advantage and increasing your revenue. However, before you can proceed, we recommend conducting a business readiness assessment to determine if your company is even ready to embrace such a massive shift.
Our ERP consultants have guided many companies along the path of digital transformation. Contact us below for a free consultation.