Posted on : 2023-08-17 18:12:31
Article : Good evening Friday Management TASK 255-Companies that step onto the road of digital transformation, enjoy tangible benefits such as increased revenue and growth opportunities.
With the rapid pace of technological advancement, every organization needs to undergo digital transformation and, most likely, transform multiple times to stay relevant and competitive. However, before you can reap the benefits of new technology, you must first get your customers and employees to adapt to this change successfully—and here lies a significant digital transformation challenge. Organizations thriving in this digital-first era have developed digital innovation strategies prioritizing the change management mindset. This paradigm shift implies that organizations should continuously explore improving business processes. While digital transformation presents unique opportunities for organizations to innovate and grow, it also presents significant digital transformation challenges. However, the best way to develop an effective digital transformation strategy is to learn by example.
Digital technologies are now imperative for markets and society, and digital transformation is becoming a key area of business innovation. However, digital transformation is complex, and firms still lack the abilities to fully grasp and exploit its opportunities. Digital technologies impact marketing by improving the abilities of market analytics, pricing, and channel management and helping to build relationships with clients to achieve value co-creation. Professional skills are variously augmented, while organisational processes are becoming more effective and flexible through the use of multiple knowledge and cross-functional experiences.
The digital investment mainly aims to improve customer engagement, enhance relationships with employees, reduce time-to-market through agile manufacturing and supply chain management, promote operational efficiency, and advance data exploitation. Today, customers expect relevant content in relation to what they’re doing anytime, anywhere and in the format and on the device of their choosing. It's their journey that dictates your strategy. And in order to keep up with this new kind of “always-connected” customer, your business must embrace technology to deliver an unmatched customer experience. Fortunately, putting the customer first is already at the center of many organizations' strategy. Research shows that 35% of business executives claim that digital transformation helps them to better meet customer expectations and improve operational efficiency (40%), and 38% of executives plan to invest more in technology to make it their competitive advantage.
Digital transformation is forcing companies to change their business models and adapt to the new market reality. What’s interesting about this is that it’s not the companies that are driving this change. Instead, this change is being driven by the customer. Back in 2018 the net global spending on digital transformation was approximately $1 trillion. Global digital transformation spending will reach $6.8 trillion by 2023. One of the main benefits is faster time to market, with 36% of businesses citing this as a key advantage. In fact, 79% of companies admit that COVID-19 increased the budget for digital transformation. And 70% of organizations already have a digital transformation strategy or are working on one. However, despite this forecast, we’re far from complete digital adoption.
Digital transformation is the integration of digital technology into all areas of a business, resulting in fundamental changes in how a business operates and the value they deliver to their customers. Put simply, it’s about changing the way a business interacts with its customers and how they provide their customers with a consistent experience whenever and wherever they need it. In fact, factors that influence a business’ decision to implement a digital transformation strategy, organizations express that customer experience and customer satisfaction as their leading influences. The companies that do transform digitally are creating highly engaged customers.
The companies that do transform digitally are creating highly engaged customers. And these customers are:
• Six times more likely to try a new product or service from their preferred brand
• Four times more likely to have referred your brand to their friends, family and connections
• Two times more likely to make a purchase with their preferred brand, even when a competitor has a better product or price.
Furthermore, highly engaged customers buy 90% more frequently, spend 60% more per purchase, and have 3x the annual value (compared to the average customer). That's not all, companies that step onto the road of digital transformation enjoy tangible benefits, such as increased revenue and growth opportunities.
In our Management Solution part, we will discuss a case study on Domino Pizza turnout on digitalisation move. Please share your experiences in this digitalisation subject to motivate the young managers/organisations to enjoy the benefits of digitalisation. Our Solution article will be published on 21st August 2023.
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