Digital transformation is a beast molding the conventional way of doing business for the good. It is no longer a luxury but a requirement to survive amidst the scorching industry competition. Do you know? Nearly 70% of companies have either a fully-functional digital transformation strategy or are creating a new one. Also, digital transformation is quite popular among startups. You’ll be surprised to know that about 55% of startups leverage digital transformation.
Overall, every business is going gaga behind digital transformation. But why? What makes them harness digital transformation? Or, more precisely, what factors are powering such a massive digital transformation adoption among enterprises? You’ll get all the answers in the article below!
Knowing what drives enterprise digital transformation is essential for all – business owners and digital consultants. It’s better to understand the ‘why’ behind digital transformation before learning the ‘how.’ Don’t worry! We will discuss all essential parameters behind the massive adoption of digitization among businesses.
So, let’s get into the post and know what powers enterprise digital transformation!
- The Importance of Customer Retention & Acquisition
Even if a struggling business has recently been turned around, it is still treading water. Customer expectations are more important than ever before.
According to research, after one unpleasant experience, 63 percent of buyers will forsake a brand altogether. In e-commerce, image is more important than words: 90% of online customers will not buy from a firm with a terrible reputation.
Investing in new technologies and developing a new digital business model can help a company show its customers that it cares.
- The Demand for Cost Regulation
The terms “cost control” and “cost management” have traditionally been used to describe measures to reduce a company’s expenses. It also involves investing in tools and resources that can yield future savings and fuel sustained growth in the post-digital era.
After a business turnaround, investing in current technologies, such as artificial intelligence (AI), might assist a company in avoiding the same inefficiencies it had before the turnaround. It frequently saves money on time-consuming manual labor that depletes resources without creating revenue.
- The Need for Decision Making & Data Analytics
Companies use data insights to make business decisions regarding their supply chain, customer service, and other aspects of their operations. Making the appropriate business decisions might help people move on from their turbulent past.
Today’s technology is constantly improving its data insight capabilities. For example, the Internet of Things (IoT) gives actionable insights that firms could never
Companies may leverage real-time data to generate accurate predictions. At the same time, AI automates the required next steps by investing in current technology, such as ERP systems with AI and IoT capabilities.
Creating a digital transformation strategy assists businesses in determining the right technology for their needs. Still, it also helps them develop organizational competencies that enable them to use these new digital tools.
Suppose you opt to lead a portfolio firm through digital transformation. In that case, we recommend concentrating on managing human capital management and organizational changes to ensure that the company’s capabilities and culture are in line with its new digital strategy. It’s also crucial to understand the current organizational structure and culture so you can train the leadership team on how to best explain the transformation’s changes.
- The Battle to Stay Ahead of the Competition
Slow adopters tend to fall behind competitors who quickly adopt new technology in most industries.
Whether B2C or B2B, customers are increasingly searching for firms that promote progress and innovation.
Falling behind could lead to another round of company difficulties. According to one survey, 85 percent of decision-makers feel companies have two years to make significant progress in digital transformation or risk falling behind their competitors and losing money.
This business driver may be more important to some industries than others, but even if a portfolio firm is in an industry that isn’t under as much pressure to innovate now, it’s a good idea to cut the curve.
- Talent Acquisition’s Importance
One of the essential investments a company can make following a turnaround is its staff. Only proper staff can maintain the momentum that the company has built.
Millennials value employers who understand when and how to let go of traditional systems and respond to digital upheaval in their sector. However, a company that refuses to embrace digital change may find recruiting and retaining industry leaders challenging. Millennials, for example, will not work for a company that still uses green screen technology.
- Organizational Silos Create Difficulties
Organizational silos are one of the reasons many businesses struggle in the first place. It’s practically impossible to collect reliable data and deliver a seamless client experience when multiple departments aren’t exchanging data and interacting.
Digital solutions, like ERP software, can, on the other hand, provide data dependability and process efficiency. The idea is to include business process reengineering in your digital transformation strategy so that employees understand how to input data, analyze data, and interact with upstream and downstream operations.
- The Need for Virtual Work due to the Pandemic
Companies worldwide have been forced to transition to virtual work since the outbreak of COVID-19. Even a year after the epidemic has passed, 77 percent of HR executives predict the work-from-home trend to continue.
A corporation that has struggled in the past and prefers tradition over innovation may be reluctant to this type of modern, mobile workplace. They must, however, learn to adapt.
- The Demand for Attracting a Buyer
It would help if you began positioning an organization for growth once it has been turned around. One strategy is looking for an acquirer or a company with which the organization can combine.
However, the company may not be able to find a buyer at this time. It may need to improve its competitive advantage or implement a cash flow strategy. It frequently necessitates digital transformation.
Digital transformation is the leading trend across all industries. Since enterprise digital transformation is gaining an impetus, it’s the best time to enroll in a relevant Simplilearn online course and start your corporate journey.