Digital Transformation: Why Does it Matter to Businesses
The meaning and implication of digital transformation (DX) vary for different businesses and so, there’s no one definition to explain the multifaceted concept. However, in a broader sense, DX is all about bringing radical changes in business processes to enhance the overall performance and value delivered to customers. With the world becoming markedly customer-driven, DX is the right integration of technology, resources, and processes that directly impact business operations, in turn augmenting business value and customer relations.
DX goes beyond merely employing technology for practices otherwise managed manually. It encompasses a cultural change through the assimilation of technology with business processes and people – embracing new business models, aligning policies with them, opening up to challenges, promoting innovation, encouraging collaboration, and adapting to changes.
The Power of Digital Transformation
Employing technology for solving problems and modifying business processes with a user-first approach – allows businesses to deliver experiences and not just products and services. DX empowers organizations to innovate, ideate, and iterate by seamlessly integrating various business aspects.
How Digital Transformation Matters to Your Business
According to a survey by the International Data Corporation (IDC), worldwide spending on the technologies and services that enable the digital transformation (DX) for business practices, products, and organizations is expected to reach $2.3 trillion in 2023. Moreover, given the drastically changing landscape of the world economy in 2020 due to the ongoing COVID-19 crisis and the predictions for the immediate future – DX has become a requisite for business survival and resilience.
Higher employee efficiency By applying to core business functions, and facilitating easier and more efficient processes – DX enables even non-technical departments such as finance, HR, and sales – to move away from manual processes by rethinking strategies and enabling automation. By aiding remote working and collaboration, it helps employees move with better agility and directly empowers the delivery environment – helping businesses achieve more collectively. Allowing organizations to identify each contributor, it also facilitates thoughtful hierarchical modifications.
Enriched customer experience DX is all about putting the customer at the core. Crafting an experience that is effective, seamless, and satisfying is the key, and doing so digitally is the need of the hour. The approach of relying on products and services to entice customers has become rather redundant in today’s experience-led world of business. With the right mix of people, skills, and processes backed by technology – only digitally transformed businesses are equipped to provide the experience that customers seek. These engaging digital experiences translate into better lead conversion, attracting the right audience, and strengthening business partnerships.
Keeping up with the competition More than a survival instinct, embracing DX is the only way forward for businesses in an increasingly competitive and undifferentiated environment. Organizations that do not align their strategies with the constantly evolving business landscape, run the risk of being left behind - which can directly affect their overall service delivery. To stay ahead of the curve, businesses must build digital processes and infrastructure at an early stage - incorporating the right technology, and bringing about changes at an organizational level. In today’s digitally-infused times, businesses need to be more agile and have the right DX strategy in place, to stay relevant and be prepared for the future.
Being early adopters of DX ourselves, we have been creating digital experiences for our customers and partners across the globe for years. Bearing in mind the potential of workable digital transformation initiatives, we put to work our considerable experience and the required skill set gained over the years – to help organizations ensure business continuity, enable processes and changes remotely, and bring business model modifications for swift resurgence, especially in extraordinary times such as the current worldwide pandemic. Talk to us! Read other Extentia Blog posts here!