10 Reasons To Jump Into Digital Transformation
Digital transformation, despite what many believe, is not just filling your business with technology. This is certainly an important component, but it is not essential.
Digitization in the company implies a change in culture; a change in the way we do things. This moves companies from a process-based approach to a data-based one in which, thanks to analytics tools, it is the experience of end-users that shows the path we must take in our business.
Digitization is a process that can take place slowly as companies acquire technology, but launching yourself to digitally transform your company before others do so gives you a gigantic competitive advantage. With this in mind, these are 10 reasons to start the digital transformation in your company, and by the way, we will show you some startups and companies that have been doing well in digital transformation.
1- Generate more value for your clients.
Automation and data collection through digitization strategies will provide what is necessary to better understand your customers. You will understand how they move within your services, what motivates them to use them, and where they are failing, so you can find quick solutions without waiting for feedback or sales reductions to know what is happening.
2- It allows you to venture into areas and markets that you had not considered.
If they had focused on processes rather than data, companies like Netflix or AirBNB would have collapsed in the first place as they tried to compete with movie rental or hospitality giants.
However, when they noticed the importance of data and what they could do with it, new opportunities and markets came out of nowhere. Thus, for both, their market stopped depending on the physical, expanding their influence to global levels and eliminating competition. Do you remember Blockbuster? Well, me neither.
3- Optimize inefficient processes and eliminate useless processes.
The focus on data allows us to give new air to processes that are becoming obsolete but that can be applied to new reality and contexts due to the influence of users. Improving processes brings advantages to the end customer:
This is the case of the Brazilian startup InstaCarro, which has managed to simplify and digitize its processes in such a way that it allows customers to sell vehicles in less than two hours, taking care of the entire process. bureaucratic, like the transfer of property!
4- Processes become measurable data
this point is essential because companies stop thinking about what might work for a market and, with the help of available data, they know what the customer really wants, offering a better product and user experience, aside from trial and error to focus more on A / B testing.
The Chilean fintech Chipax is an example in this area. Its tool allows it to carry out all the financial management of companies by automating bank reconciliations, cash flows, income statements and budgets, bringing and analyzing data from bank accounts, accounting books, and the SII.
5- The solution to problems is in analytics
Having the data at hand can be more easily associated with problems and thus find solutions. Today practically all companies and startups have some digital marketing tools such as Google Analytics, Hotjar, etc. to know in real-time what their users do, what places they click, what they buy, and what they do not like.
6- It allows greater control within the company.
Digitization helps monitor all areas of your business, from conversations between employees to why a product has not arrived at a customer’s door. This control helps to know where in the chain there are weak links, and thus fix them.
7- Communication becomes faster and easier.
Thanks to communication tools such as Slack, Google Meet or Facebook’s Workplace (which improve interactions inside and outside the company) and improvements in internet connections, today we can talk to a customer who has a problem with their order to the other side of the world in a couple of minutes, without delay, and immediately contact the nearest logistics center to solve the problem.
8- It allows you to improve the productivity of your employees
Giving the technology to someone who doesn’t know how to use it is like giving a child a drill. The digital transformation will make the training of employees a priority and also the hiring of personnel with a higher degree of knowledge, making the company become more productive in a short time.
This is something that the education startup Platzi stands out for, founded by a Guatemalan and a Colombian in San Francisco, USA. 70% of its employees live in Latin American countries and were, before working at the company, students from the same platform.
9- You will save money without losing productivity.
In 1990, more than 44% of people worked in agriculture worldwide. Today, only 30 years later, that number is 28% and yet we see the warehouses to exceed.
This increase in productivity is not only due to technology, but also to more efficient methods of producing goods, so that in a very short period of time your company can, through digitization, reduce investments in personnel and machinery without this meaning loss of productivity.
10- Security increases exponentially
Not only the physical security of your stores will be better covered by digitization, but your data, that of your employees and that of your customers.
As you can see, the digital transformation is not something for a couple of days. It is important to recognize that this process is going to alter many areas of your company and you will probably have to eliminate entire departments and create new ones, changing processes drastically. However, although it may be difficult, you will see that it is worth it if you want your company to be above the rest.
Name- Raunak Pandey
Bio- Raunak is a Mechanical Engineer by qualification & Marketer by passion. He is the founder of Maiden Stride, a leading digital marketing company that provides world-class search engine marketing services and website & application development.