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 business model.
Why should your company consider this move and what could you stand to gain from it? Let’s take a look at five of the top benefits to consider.
5 Benefits of Digital Transformation
Gartner analysts anticipate that IT spending will climb 6% in 2021, hitting a total of $3.9 trillion.
Why? The answer lies in the way modern technology can increase productivity, lower overall costs and improve the customer experience.
1. Better Customer Experience
Today’s customer is more discerning than ever before. Not only do they expect delivery turnarounds to be lightning-fast, but they also want knowledgeable service representatives available around the clock.
Delivering on these expectations requires robust, in-depth customer insights. You can achieve these by implementing enterprise technology, such as ERP software.
Coupled with the right data strategy, modern enterprise systems can provide an incredible level of detail on every facet of customer behavior and attributes. As you leverage the insights provided by structured and unstructured data, you can provide more relevant, personalized and agile customer experiences.
The 2021 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, many digital technologies are supplementing traditional reporting and analytics by using machine learning.
One benefit of augmented analytics is that it’s user-friendly, meaning you don’t need to be a coder to run a query. Another benefit is that it’s able to narrate data visualizations using natural language generation capabilities. This makes these platforms more accessible to key team members and stakeholders, regardless of their technical background.
3. Improved Efficiency
Even if you’re already operating with well-oiled processes, you probably would like to be more efficient and productive.
Digital transformation typically involves automation, data integration and process improvement, all of which can help improve operational efficiency and allow your employees to work smarter.
For example, many ERP systems are designed with preconfigured best practices to help alleviate the burden of manual tasks and lower the risk of human error.
4. Increased Agility
An agile company is capable of keeping up with changes in demand.
Digital transformation enables your organization to quickly respond to market shifts and ever-changing customer needs. In turn, this creates a continuous improvement culture.
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 Chains
Are you planning a digital transformation that involves AI technology? While companies in all industries can benefit from AI, one sector especially well-suited for AI-driven software is manufacturing.
If you’re in this industry and your digital transformation involves AI technology, you can reap many supply chain management benefits, such as the ability to pinpoint where in the supply chain an item was damaged. This improved visibility enables quicker and better-informed decision-making and can help quicken remediation and recovery efforts.
In addition, manufacturers can also apply AI to improve their product description technology. For example, image recognition can confirm the accuracy of products listed in a bill of materials by comparing the item to a technical drawing. This is a critical part of ensuring proper branding and labeling.
From there, some AI technologies, such as natural language generation, can even transform that structured data into long-form or short-form content, bolstering marketing efforts.
Your Partners in Digital Transformation Success
Deciding to embark on a digital business transformation is an important step in remaining competitive. However, this decision is only the first step.
Before you can proceed, there are other important parts of the journey to complete. One of these is to conduct a business readiness assessment to ascertain if your company is even ready to embrace such a massive shift. This is important because your ultimate success lies in your team’s willingness to embrace new technology and processes.
As experienced ERP consultants, we’ve guided many companies along the path of digital transformation. Contact us below for a free consultation and let’s get started.