Increase productivity and operational efficiency
The first benefit of digital transformation brings to businesses is increased productivity and business performance. You can take advantage of new technologies in production, automating processes with robotics, machine learning and AI. With digital production and business processes, businesses will save maximum time, quickly fix errors in production and operations, reduce costs and anticipate risks.
A 2023 report from global consulting firm McKinsey & Company, has quantified the benefits that AI technology brings. Experts estimate that about half of all work activities that exist by 2023 could be automated in the future with AI. The report also notes that AI could “enable labor productivity increases of 0.1 to 0.6 percent annually, depending on the pace of technology adoption and the reallocation of workers' time to different tasks. other activities”
In addition, companies are using digital to improve worker productivity, which is also helping to reduce production costs and overheads. The explanation for this is because when you operate the factory efficiently, you will avoid incurring costs for wasteful usage. If you can operate the factory floor more efficiently, you can avoid incurring costs for wasteful use. the cost of inefficient energy use or wasted time producing a product.
More powerful resource management
The benefits of digital transformation brings businesses indispensable consolidation of all information and resources on the same set of tools. Instead of being scattered across many different software and databases, digital transformation can integrate applications, software and databases into a centralized repository. Thanks to that, businesses can manage resources more strongly, easily analyze, make accurate decisions as well as reduce supplier overlap.
Furthermore, digital transformation is not a department or functional unit but it includes every area of a business. Implementing digital transformation for businesses, you will see the collaboration process between functional departments become smoother, every department has can access and view data consistently. And most of all, data security, information encryption as well as access authorization are guaranteed.
Improve better customer experience
Usually, articles shared about digital transformation often talk about the benefits it brings to the company internally, but in reality, digital transformation changes the customer experience. Changes and improvements from technology transformation support the creation of better services and products, meeting increasing customer expectations. For example: More features; Faster delivery; More professional service...
Gartner's analysis also showed that more than two-thirds of companies said they are competing based on customer experience. Accenture's report also points out that CX "has emerged as a key driver of sustainable business growth". Even a one-point increase in CX score can add up to millions of dollars in growth.
The path to digital transformation is essentially using digital transformation to enable closed-loop engineering. Businesses can collect more detailed customer data, easily analyze data and make accurate decisions. Digital transformation isn't just about intuitive customer experiences, it's about seamlessness from email communications to user portals, digital products, and even the pace at which you reach out to potential customers.
Improve product and service quality
Product and service quality will be the strength for businesses to compete in the market. Deploying digital transformation helps businesses create closed production processes and well control product and service quality. By applying enterprise digital transformation software systems, the product lifecycle management (PLM) process is significantly improved. Businesses can streamline the product development process while providing stakeholders with access to the most accurate data appropriate to their roles for consistent, rigorous quality control. shop.
Increase competitive position in the market
The benefits of digital transformation in businesses cannot be ignored: it helps increase competitive position in the market. When digital transformation is done right, transformation initiatives give organizations the ability to quickly identify customer needs, market trends, and new opportunities for growth. In addition, experts believe that digital transformation helps enhance customer experience, improve service/product quality, improve production processes and the competitive position of businesses in the market. is also increased.
Increase agility
Another benefit of digital transformation is making the organization more agile. Instead of applying manual methods and traditional production processes, increasing flexibility with technology and digital transformation helps improve speed to market and create new opportunities. Besides. Digitalization helps shorten product lifecycles, adopt a continuous improvement (CI) strategy, anticipate challenges, and build solutions quickly. Thereby, allowing businesses to innovate, adapt quickly to market changes and increase their ability to survive.
Promote increased revenue and profits
According to the "Digital Maturity Index Survey" in June 2023 by professional services firm Deloitte Digital, digitally mature companies achieved 6% higher earnings before interest and taxes. Similar to research by McKinsey & Company in 2023 also shows that digitally led companies outperform those that have not yet transformed digitally, as shown by financial metrics, including total shareholder return.
Thus, one of the biggest benefits that digital transformation brings to businesses is boosting revenue and increasing profits. Because digital transformation not only helps reduce costs and improve products, but also focuses on identifying new ways to make better profits. For example: New products, new business models or revenue streams or additional production and output.
Quoted from the explanation of Mr. Kamales Lardi, author of the book The Human Side of Digital Business Transformation and CEO of Lardi & “New technology solutions enable organizations to innovate their business models, opening the way for diverse revenue streams,” said Partner Consulting.
Encourage employee excellence
“Improving the employee experience allows you to retain people,” said Smith. This is a particularly important benefit that digital transformation brings to businesses.
A survey from SaaS company 10x in July 2023 found that about 94% of bankers would leave their jobs for someone with better technology; 92% will leave for banks with more ambitious transformation goals. DX experts also clearly analyzed the above research, although it only focused on the banking industry, but also clearly reinforced what they saw above. throughout the realm. Employees tend to want to work with leaders who have new thinking and apply new ways of doing things, not with units that lag behind.
Furthermore, it is thanks to new technologies applied to the work process that have helped change internal processes and significantly increase employee experience. Employees feel more comfortable working, and their efforts are also recognized when productivity improves. In particular, digital technologies have helped employees come up with more valuable creative ideas.
Encourage digital culture
One more benefit of digital transformation is to encourage businesses to build a digital culture to adapt to the rapid market changes. In a recent PTC survey of executives and their employees, 90% agreed that they would prefer to work for an organization that is adopting and investing in digital transformation technology. This shows that digital transformation not only shapes employee experiences but also motivates them to maintain a culture of progress, creativity and innovation. Additionally, team members who want to meet the digital culture must upskill and learn digitally to leverage the benefits of digital transformation.
Enable future digital growth
According to DX experts, the biggest benefit of digital transformation in business is that it drives an organization's successful digital transformation efforts to greater success. In other words, it's easier to understand: Digital transformation is the initial action that sets the stage for all subsequent business development. If your business does not invest in digital business model transformation, there is a high possibility that your company will quickly become obsolete.
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