Benefits of Digital Transformation

Benefits of Digital Transformation

For many companies, the driver for digital transformation is cost-related. Moving data to a public, private, or hybrid cloud environment lowers operational costs. It frees up hardware and software costs while freeing up team members to work on other projects.

1. Enhanced data collection

Most businesses are collecting mountains of customer data, but the real benefit is optimizing this data for analysis that can drive the business forward. Digital transformation creates a system for gathering the right data and incorporating it fully for business intelligence at a higher level.

It creates a way that different functional units within an organization can translate raw data into insights across various touchpoints. By doing this, it produces a single view of the customer journey, operations, production, finance, and business opportunities.?

It’s vital to evaluate how customer data is being collected, stored, analyzed, and shared as part of this process. When you’re rethinking your tech stack, you’ll want to ensure that sensitive data flowing into and out of your customer relationship management (CRM) software and other platforms is protected with a layer of?SaaS data encryption.

As you evaluate the customer journey as part of your digital transformation, consider how you can give your clients greater autonomy over their own data — using data privacy as a business differentiator. Consumers are increasingly aware of, and concerned about, how their data is collected and used. Show them that you respect their data by putting strong privacy practices in place and giving them the opportunity to change their minds at any time.

2. Stronger resource management

Digital transformation consolidates information and resources into a suite of tools for business. Rather than dispersed software and databases, it consolidates company resources and reduces vendor overlap. The?average number of applications used in enterprise businesses in 2020 is 900. Digital transformation can integrate applications, databases, and software into a central repository for business intelligence.

Digital transformation is not a department or functional unit. It encompasses every area of a business and can lead to process innovation and efficiency across units. From sales and marketing to finance and the C Suite, every department leverages sensitive data. It’s important to optimize and secure data everywhere it flows while equipping teams with easy-to-use tools to get their jobs done.?

3. Data-driven customer insights

Data can be the key to unlocking customer insights. By better understanding your customer and their needs, you can create a business strategy that is even more customer-centric. Using both structured data (personal customer information) and unstructured data, such as social media metrics, these insights can help drive business growth.

Data enables strategies to provide more relevant, personalized, and agile content.

4. Increased Profits

Companies that undergo digital transformation improve efficiency and profitability. Consider these results reported by the?SAP Center for Business Insights and Oxford Economics:

·???????80% of organizations that have completed digital transformation report increased profits.

·???????85% say they have increased their market share.

·???????On average, leaders expect 23% higher revenue growth than competitors.