Impact of Digital Transformation on Your Business
The acceleration of the digital world demands that organizations adapt, which is why 88 percent of companies are working toward a digital transformation. Its necessity in today’s market cannot be understated, as 85 percent of decisionmakers feel that without adapting for the digital marketplace, they’ll experience significant setbacks in growth and profits. That’s why it’s time to look at the importance of digital transformation for your company, as well as how it can impact your business.
What Is Digital Transformation?
The concept of digital transformation, also known as digital business transformation or digitization, is the use of digital technologies in a strategic manner that streamlines and accelerates your operations, from your business model to your in-house processes. By digitizing your company, your goal is to gain the benefits of digital transformation, which can include increasing your revenue, enhancing your customer experience and gaining a competitive edge.
Digital transformation is a broad area, which is why several factors drive your degree of digitization, including the following:
- Technology: The influence of technology comes from its potential benefits on your operations, as well as the difficulty level of its integration.
- Demand: The effect of demand comes from customers, who now expect a shopping experience that’s straightforward and intuitive.
- Behavior: The impact of behavior comes from consumers, who have expectations when shopping with you when it comes to your integrated technology.
By listening to the demand of your customers, watching their behavior and studying available technology, you can build a foundation for a digital transformation.
Why Does Digitization Matter: Case Studies
A productive way to demonstrate the importance of digital transformation is to look at a few case studies from leading companies, including:
- Xylem: A producer of water management solutions, Xylem struggled to adopt the benefits of digitalization due to a fragmented business operation. Over the course of several years, Xylem reduced its silos and created a single service for in-house activities and engagement — the Xylem Integrated System (XIS). With a service-orientated architecture, the XIS managed to provide Xylem with more than $30 million in additional revenue.
- McCormick: A well-known name for seasoning products for cooking and baking, McCormick wanted to go beyond aisle interactions with consumers. Instead, it aimed to become a part of their meal planning. That’s why the company launched FlavorPrint, which quizzes users and provides personalized recipe recommendations. The success of FlavorPrint went beyond McCormick’s expectations, leading to the start of a tech company, Vivanda, that serves as another source of revenue.
- Audi: A member of the Volkswagen Group, Audi wanted to provide city residents with a convenient way to view and explore their vehicles for sale. In response, they invented Audi City, an all-digital showroom that allows visitors to explore all the models and options available. The stores also feature samples of the materials, such as for seating. The car manufacturer noticed the immediate benefits of digitization as their London location saw sales rise 60 percent.
- StubHub: As a leading ticket retailer, StubHub processes a substantial number of transactions each day. The company’s goal was to make the customer experience even better while reaping the financial benefits of a digital transformation. That’s why they introduced cloud technology and partnered with Oracle, Akamai and VMware to provide a seamless experience for mobile users and integrate their services via Facebook.
These companies maximized the benefits of digital transformation by looking at customer behavior and demand and considering the technology available.
How Can Digitization Impact Your Business?
The impact of digital transformation on your business varies but will often lead to the following benefits of digitization:
- Increased revenue
- Decreased operating costs
- Improved customer satisfaction
- Lowered fragmentation
- Optimized operations
- And more
All the above benefits of digitalization are valuable, as they can strengthen your company’s hold on your designated market and continue your growth.
Incorporate the Benefits of Digital Transformation Into Your Company
With the numerous advantages of digital transformation, it’s a factor to consider when analyzing and assessing your company’s performance as well as planning for the next quarter. At Consolidated Technologies, Inc., we can help you digitize your business and benefit from the movement. In fact, more than 2,000 companies throughout New York and the tri-state area rely on our quality assistance and more than 20 years of experience.
Learn how we can help your business utilize the benefits of digitization by contacting us today!