3 Critical Business Benefits of Digital Transformation Initiatives
Blog: NASSCOM Official Blog
When a business considers the wisdom and benefit of Digital Transformation, it often thinks first of the cost and the chaos it anticipates and may think that the investment and disruption is not worth the effort. But, the benefits of Digital Transformation cannot be ignored. There are many reasons to consider this type of initiative, and we look at some of those in this article.
As George Westerman, author of Leading Digital: Turning Technology Into Business Transformation said, ‘When digital transformation is done right, it’s like a caterpillar turning into a butterfly’, and that transformation will affect every aspect of your business from financial management to team optimization, product and service success and more!
If a business is to succeed in local or global competition, it must recognize the permanence of change and the rate at which this change is taking place in an era of rapid technology evolution. If business managers do not address that change with digital transformation and leverage business disruption, it cannot be as creative or competitive as it must be to sustain its success in the market.
“If a business is to succeed in local or global competition, it must recognize the permanence of change and the rate at which this change is taking place”
The three core benefits of Digital Transformation are:
Productivity and Efficiency
Enabling new technology and using tools for analytics and data sharing allows team members across the enterprise. As the business promotes data literacy and incorporates the use of fact-based decision making, augmented analytics and other technology tools into the employee evaluation process, it can encourage and embed these expectations into the organization and ensure that new technologies and tools will be adopted and used on a day-to-day basis. These tools and techniques will improve productivity and clarity in decision-making and increase efficiency by making decisions more quickly and accurately. By integrating technology and ensuring access across the enterprise, the business can provide automation and improve insight into data, thereby improving performance.
Agility and Competitiveness
The business considerations for digital transformation should also include return on investment (ROI) and how the business budgets and leverages technology to build its success. When business users and all team members adopt these tools and become more comfortable with the use of data and technology solutions, the business moves forward more quickly and can adjust to issues and leverage opportunities more rapidly so enterprise agility and ROI for technology investments is improved. Through the use of technology, the business can connect with customers, partners, suppliers and stakeholders and improve its understanding of trends and patterns to produce products and services that suit the market and are competitive.
Creativity and Empowerment
While business team members and business users may question the value of digital transformation, it is common to see resistance to change. It is imperative that businesses review the culture of the organization and provide support for this type of initiative so that business users have what they need to succeed and will, over time, see the value of these additional tools. Business disruption may not be comfortable but it enables the continuous reimagining and renovation of the business to keep it fresh. Business users can leverage technology and data to understand issues and to envision solutions and new opportunities for business success. Digital Transformation allows team members to be empowered with the tools and information they need to fulfill their roles and optimize their time and knowledge. Access to these tools and this type of data, presented in a way that is meaningful to each user, will allow for creativity and the testing of theories, as well as prototyping and brainstorming.
“Through the use of technology, the business can connect with customers, partners, suppliers and stakeholders and improve its understanding of trends and patterns to produce products and services that suit the market and are competitive.”
The achievement of business goals, market growth and customer satisfaction are just a few of the other benefits wrought by Digital Transformation initiatives. These achievements and the benefits we described here enable the realization of the ‘butterfly effect’ described by George Westerman.
If your business is ready to embrace Digital Transformation you can begin your journey here start here: Digital Transformation Support Services, Offshore Software Development. Read our Digital Transformation White Paper, as well as our White Paper on Selecting an Offshore Software Service Provider.