What is Digital Transformation?
Moving away from the traditional effort-intensive methods of running business operation in favor of managing them through software and technology, to introduce ease of access, ease of use, and clear visibility to previously unmapped areas of business, is commonly termed as Digital Transformation. Here is an example. When a bank decides to move to an 'always on/available' model of business, they start encouraging their customer base to perform their banking operations through a banking app. A baking app saves the bank costs in work force and general overheads, while letting them run their business 24/7. You cannot beat the value proposition here and this is Digital Transformation at its finest.
Digital transformation is typically driven by industry-agnostic common factors:
- Lowering costs — by automating procedures that previously needed human contact
- Enhancing customer experience — by utilizing technology and automation, more customers can be engaged and their demands can be resolved far more quickly
- Boosting Cybersecurity — by incorporating more tech in processes
How it helps businesses?
Mobile applications are an excellent method to digitalize organisations. Presently, users use their most private electronics, cellphones, to do a wide range of tasks, from e-commerce to bill payment and healthcare counselling via healthcare apps.
Here are some examples of how mobile applications may assist you in digitally transforming your enterprise or startup:
- Maximise engagement – Using mobile applications for typical business transactions (such as moving funds, buying a ticket, or trading on the market), you get new tools to connect and engage your clientele. Moreover, your services will be available 24 hours a day, seven days a week.
- Increased revenue – If your company sells stuff online, E-Commerce applications have 157 % higher conversion rates than mobile web.
- Better suggestions – by utilising AI and monitoring the customer's activity, a firm may proactively upsell services linked to the user's preferences.
- Quick and high-quality content transmission — by utilising the most recent high-bandwidth media, such as 4G or 5G.
- Automating manual systems, such as automatically sending out notifications that your insurance is about to lapse, or interacting with consumers through bespoke offerings in exceptional circumstances (such as birthdays).
The automation of specific processes and flows in such a way that human contact is removed partially or entirely is a typical aspect of the great majority of digital transformations. Reduced costs and more productivity are the outcomes of digital transformation, resulting in better profitability.
Where can digital transformation help businesses?
A business is composed of several components that work together to achieve a shared purpose, and this
is where digital transformation brings out the best value.
Sales & Marketing
Profit is, by definition, at the heart of any firm. Businesses are striving to get more consumers and increase revenue, but in order to do so, they must get in front of clients to make their offerings easily accessible.
Trying to target your audience and telling them about your product or service is a wonderful approach to reach potential customers. This is readily accomplished by capturing the interest of potential consumers using marketing channels such as Facebook, Instagram, Twitter, or Google Ads. Businesses may target a genuine audience and market their goods in the news feeds of major social applications by utilising sponsored advertisements. Potential customers who indicate a curiosity in the company's services will be led to the company's website or mobile app, where they may learn more about the products and services offered.
Because a typical US consumer invests 2 hours and 3 minutes each day on social networks, digital transformation in advertising is an excellent strategy. This creates a strong pipeline of prospective new consumers. Through conversion-oriented webpage and activities, businesses have a tremendous potential to interact with new consumers and promote learning more about the products and services they provide.
Another way that digital transformation may aid the selling process is by enhancing the customer experience utilizing AI and machine learning approaches. The experience may be enhanced by using cutting-edge technology developments like as augmented reality (AR/VR), which allows people to see and interact with the system before purchasing it.
In addition, intelligent recommendation engines, which employ AI approaches to propose items and services that best suit the user's profile, might improve the user's experience.
Digital transformation can assist organisations that depend on a supply chain to achieve their objectives by automating the sourcing and processing of goods.
Machine learning algorithms may be used to build intelligent systems that control supply by autonomously ordering supplies when they're about to run dry, generating forecasts about the amount of material needed for future seasons, or improving the dynamics of the procurement procedure, all based on historical data.An example of digital transformation on the supply chain could be a restaurant that only does food deliveries.
With the support of ML, the hotel will be able to forecast how often will they make purchases in the long term based on a variety of conditions such as rain, holidays, the size of the metropolis in which they conduct business, past buying behaviors, and so on, resulting in reliable forecasts of the supplies required for the coming period. An intelligent supply system that is linked with suppliers may autonomously order ingredients and package products, ensuring that the restaurant never goes out of food and that only fresh ingredients are used in the kitchen.
Low-tech firms, such as local grocers, might benefit from digital transformation as well. They may attract more consumers and keep their company afloat by enabling internet ordering, whether through mobile applications or websites, particularly in situations like the Covid epidemic, when many individuals have depended on parcel delivery for the large portion of their orders. Businesses that provide delivery options are here to stay, and they've proved to be a great way to boost revenue.
A small firm may better develop its consumers by giving personalised incentives and rewards programs, turning them into fans, by selling goods online.
Due to the worldwide pandemic, digitalization and gamification have been applied to a variety of areas. In recent times, companies such as on-demand video workout applications and e-learning sites have hit the mainstream. Gamification (the use of games to enhance user engagement) is a powerful technique for increasing user motivation and commitment that can be used to a wide range of organisations.
Digital Transformation: Reasons for failure
Regrettably, there's a few instances where digital transformation fails to achieve its goal. The biggest cause for an unsuccessful digital transformation is that the organisation fails to incorporate technology into their daily operations operations, as per our findings.
For example, a company may start utilising a sophisticated invoicing system that generates invoices routinely and pursues the customers according to signed agreements, but the company won't incorporate their agreements into the system, making the whole thing a costly invoice generation tool. In order for a digitalization program to be successful, the company that executes it must reform in order to reap the full advantages of technology. Businesses who fail to incorporate new digital processes into their routine and reorganise procedures around them may not reap all of the advantages of technology and may generate an additional task, resulting in lower profitability or more effort.
A business's digitalization is a combination of technology and application. Not all business models can be effectively transformed, and even those that can can run into problems during the process. Personnel who are not adequately taught in using technology and knowing all of the advantages of how technology may make their jobs easier are usually the cause of these problems.
SoftCircles uses their skillset and expertise to assist businesses in implementing digital transformations.
Our experience working for large corporations and startups provided us with the skills we needed to help you negotiate your company's digital transition. Our team of trained specialists and designers creates digital solutions that have a long-term influence on users and help organisations run more efficiently.