As the Covid-19 pandemic hit the world, it completely changed our perspective about digital technology in business and its implementation. It has encouraged digital adoption and transformation all over the world! But the question remains, are we utilising it’s full potential?
Digital business transformation post Covid-19 is at the center of today’s economic development debate due to its widely increased usage. As per a survey done by Statista on how will the Covid-19 pandemic affect the overall economic situation of the digital economy, the opinions were mixed. Let’s see how business transformation in digital economy is assumed to shape up according to the survey:
- 33 percent of surveyed international digital decision makers believed that the digital economy will benefit after the pandemic
- 25 percent believe that number of business players will be reduced while the major corporations will emerge stronger than even once the pandemic is over
- 24 percent think that the digital economy will have to endure a long-term revenue loss like the overall economy
- 16% of the people who were a part of the survey believe that no predictions or forecast is possible at the moment
Is Covid-19 Really Accelerating Digital Transformation?
Yes, we have seen a drastic shift of consumers towards online channels, companies are coming up with digital business transformation strategies to stay in the game. Let’s look at some stats to get a clear picture, shall we?
The pandemic has accelerated digitalization in business. Many companies have accelerated the process of digitization of their supply-chain, customer interactions and internal operations by three to four years. Not only this, companies have also accelerated in adding digitally enabled and efficient products in their portfolios by seven years!
The above data clearly shows that global digital adoption has accelerated by 7 years. This is a great leap that companies took by introducing business transformation solutions in such a short timeframe.
How Digital Transformation Benefits Your Business?
- Increased efficiency: DX will help streamline operations and automate the manual processes. As a result, you will get better speed and enhanced focus on revenue-generating techniques and activities.
- Reduced cost and enhanced productivity: Optimising business technology and operations around digital technology means cost-per-transaction savings and increased sales. Also, since employees are already working remotely, their focus is on leveraging collaboration technology and tools to maximize workforce productivity and maintain the company culture.
- Increased profits: Companies that undergo DX improve their profitability. Let’s talk about the results reported by the SAP Center for Business Insights and Oxford Economics:
- Improved agility: Due to software development, businesses can increase their agility with DX to improve speed-to-market and adopt Continuous Improvement (CI) strategies. This allows for faster innovation and adaptation while providing a pathway to a much improved version of what was.
- Enhanced customer experience: Customers have gotten used to having endless choices, low prices, and fast delivery. DX manages to keep the consumers happier than ever.
Accenture reports that customer experience has emerged as the key driver of sustainable business growth. They found that even a slight rise in the customer experience count can bring millions of dollars growth annually.
6 Ways Businesses Can Make The Most Of Digital Transformation Market Opportunities
Let me walk you through the key elements of digital transformation for your business model. So, without further ado, let’s begin!
1. Omnichannel commerce
Centralising customer experience is one of the most important strategies to ensure that we are engaging the customers and at the same time making it easy for them to find the answers that they are looking for. Due to the unfortunate turn of events in 2020 all the physical business locations are shut down and as a result consumers have no option but to go online for their basic needs.
For example: we can choose groceries online, pay online, track our order, receive items on our doorstep in a contactless form and leave feedback all on one convenient app. It is important for the businesses to blend the physical and digital aspect smoothly and create an integrated channel.
2. AI and machine learning
Last year an IT Ops and Security company Splunk announced its “Data to Everything” campaign, and I couldn’t agree more! Data is obviously everything but data without the technology to analyze it becomes obsolete. AI and machine learning are exactly the key elements we need right now. All data to be captured, analyzed, managed, enhanced and visualized in rapid succession.
3. Operational agility
Digitization of processes lowers the amount of resource and time needed for maintaining operations and innovations. Companies are enabling workers with digital tools and platforms for improving collaboration on the go, while using digitization tools for streamlining their operations through data capture and analysis automation.
4. Embracing automation
Did you know 84% of the consumers preferred interacting with computer automated systems. Especially in times like these, such DX in business can go a long way! Computer based systems increase the customer digital experience. In case, you have not used automation as a part of your business transformation strategy then I suggest you start now!
It will help you save time since automated responses engage and provide services faster than human advisors or customer care services. It will also increase efficiency, because the time spent by team members on basic processes like follow-up emails and ticket prioritization will be automated.
5. Cloud strategy
The organisations who are still pondering over the idea of migrating onto the Cloud needs to accelerate the action in this area post the Covid crisis. The logical starting point could be setting up a site on the cloud that should be regularly tested as part of the routine drills.
6. Information security
Last but not the least key element of DX is securing the data of your organisation and customer. Such sensitive information should be tackled with utmost security. In recent times, a surge in security breaches has increased mainly due to substantial increase in usage by working remotely.
Recently, security concerns were highlighted in Zoom, where their executives acknowledged that the online communication platform was not designed for a sudden surge in the app usage. So, your focus should be on making the ‘Information Security’ an integral part of the overall design of your organisation. An equal emphasis should be given to securing the IT assets – Servers, Desktops, Smartphones, etc by integrating the best-in-class security tools.
In order to leverage DX post pandemic, I strongly suggest to adhere to the key elements mentioned above.
Help Your Business Adapt To The New Normal
By 2023, 53% of all investments in information and communication technology will be in digital transformation. That represents increased spending by more than 50% from 2019 levels. Well, in my opinion DX is the need of the hour during this crisis, even post Covid-19, the business world will be completely digitally transformed. Confused? You can always go to digital strategy consulting firms.
What can’t be cured must be endured! Business transformation has crossed the stage of being a trend, it is now a necessity that cannot be ignored. It has now become a mode to win a competitive edge. I hope that I have helped you view gain perspective as to why DX is essential for your business. In case you want more guidance, reach out to our digital transformation strategy consulting team.