The Importance of the Right Digital Solutions for Accelerating Digital Transformation
Blog: NASSCOM Official Blog
Digital transformation is all about infusing efficiency into a system using top-notch digital solutions. The right solutions will help enterprises in achieving the outcomes of digital transformation like superior customer experiences and ROI.
Digital transformation is about leveraging technologies to bring about changes in an organization or ecosystem across processes, departments, competencies, and functions. These changes are aimed at creating value for the stakeholders, especially the customers. It calls for innovation in developing and implementing solutions and enhancing the capabilities of the existing systems. Digital transformation brings in increased productivity, better quality, enhanced efficiency, reduced costs, streamlined and agile processes, faster delivery, and enhanced security.
Enterprises are looking to undergo digital transformation in view of the changing customer preferences, the rising cost of operations, increased competition, and a multiplicity of new technologies. The digital landscape is changing so rapidly with the advent of new technologies like AI, ML, data science, big data, predictive analytics, and IoT that legacy systems are not able to cope with the real-world. So, unless enterprises make a shift from their legacy systems into advanced systems such as cloud, they are condemned to be relegated in the competition. Even statistics point to the fact that enterprises adopting a robust digital transformation strategy have done well compared to the ones still thinking about it. For example, around $2 trillion have been spent by enterprises globally on achieving enterprise digital transformation (Source: ). In fact, the benefits of embracing digital transformation services are many –
- Improved operational efficiency
- Addressing customer expectations
- Better quality products or services
- Increased design re-use
- Reduced product development costs
- Introduction of new revenue streams
- Better monitoring of resources
- Increased compliance of security protocols and standards
- Better security of systems
- Achieve ROI
Enterprises can transform their business by innovating and disrupting three core areas. These are consumer experience, core enterprise, and supply chain. Let us understand these.
Consumer experience: Arguably at the heart of any digital business transformation exercise, consumer experience is all about delivering a personalized, secure, and seamless browsing experience. It helps to increase traffic, reduce bounce rates, and drive conversions. Relentless competition has meant businesses have to deliver quality products to the consumers at cost-effective rates. However, to ensure this they have to streamline their processes, innovate, train their manpower, and invest in the latest technologies. This way they can develop, test, and deliver products that can work seamlessly across devices, operating systems, geographies, browsers, and networks. Thus, if consumer experience is enhanced enterprises can win half the battle as far as winning over their competition is concerned.
Core enterprise: Enterprises often find switching to a seamless digital platform a costly and time-consuming task. This is because most processes are often not geared for digitization and present their own set of challenges while doing so. However, if the core processes of any enterprise are digital then it becomes easy to combine agility and speed. It is not that only the start-ups or digital entrants can execute digital transformation implementation but the bigger players also can do the same with a strong digital core.
Supply chain: The highly choosy and tech-savvy customers of today want personalised products at reasonable price points. Besides, they want you to heed their feedback (if any) about the product and address their concerns. This means the development process at your end should be responsive enough to pick the right signals from the ground. So, the output in terms of quantity should take a backseat and instead, quality, brand visibility, speed, and responsiveness should define your business process.
Enterprises, in order to stay above the competition curve, often embrace digital transformation solutions that are not conducive to their business model. The result is often glitch-prone and cost-intensive. For example, an enterprise includes an AI-led solution, which may not be required in the first place. So, not only is the cost of including such an advanced solution becomes prohibitive but the people need to be trained to use them for optimum results as well. The result, even after investing a substantial amount, resources, and effort in creating a digital transformation framework, the output is not as per expectations. Hence, implementing the right digital solutions for accelerating digital transformation is important.
So, what happens if enterprises use the right digital solutions for transformation?
Collaboration across departments: In every organization, there are silo-based departments not working in congruence but often at cross purposes to each other. As a result, this creates bottlenecks in processes and departments, impacting synergies and the quality & time of deliverables. However, with digital transformation implementation, such silo-based departments and processes are streamlined and a collaborative approach is adopted. It addresses everything, be it the processes, strategies, work culture, issues with the workforce, and production, among others. A smooth transition to a modern digital ecosystem would ensure the alignment of all departments leading to the fulfilment of common organizational goals.
Data-driven insights: Organizations spread across geographies and time zones often find it difficult to derive reports or draw insights from such reports. The delay can often be the difference between losing or getting a business contract. Once enterprises go digital, they gain the ability to track and analyze performance metrics. It helps them to optimize strategies and streamline processes to achieve better results. Data-driven insights can help enterprises monitor their business from close quarters and improve decision making.
Innovation and agility: At the heart of achieving success in the digital ecosystem is adopting innovation and driving agility. Since customers will always demand better quality products or services quickly and at cost-effective rates, enterprises must innovate and speed up their development, testing, and delivery pipeline. Thus, a strong digital transformation framework would help enterprises in delivering great customer experiences and achieving ROI.
Conclusion
Digital transformation is not something that businesses can balk at and ignore any longer. It has become important for businesses to stay in the competition and deliver the best quality products and services.
The post The Importance of the Right Digital Solutions for Accelerating Digital Transformation appeared first on NASSCOM Community |The Official Community of Indian IT Industry.
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