Business benefits of digital transformation

The old adage ‘if it ain't broke, don’t fix it’ is good enough for many situations. Your family’s super-secret, 100 year old scone recipe. The Coca Cola formula. And of course, a remake of any classic movie. 

However, a business trying to operate and compete in the modern, technology driven world is not one of them. 

And while it may seem daunting, the benefits and opportunities of putting your business through a digital business transformation far outweigh any short term inconveniences. 

What is digital transformation? (and why is it important?)

Digital transformation is integrating digital technology into all areas of your business. It could be as simple as moving your accounting system online or as complex as a complete overhaul of the day to day running of your business. The goal is to change how you do things resulting in a better experience for your team, customers, clients and other business stakeholders. 

It has the added benefit of readying your business for the next technological evolution. Let’s face it, technology is advancing at warp speed. And you don’t want your business to be one of those left behind because they couldn’t (or wouldn’t) adapt to a changing world and global marketplace.

What are some of the benefits of a digital business transformation? 

Upgraded operational processes 

If your team has the right tools, they’ll no longer have to spend time struggling with outdated systems that won’t integrate with newer technology. Sure, there may be some training and upskilling involved but once the dust settles, they’ll be able to work more easily with other departments or teams. 

Improved efficiencies and increased productivity

Better operational processes mean improved efficiencies, which can foster a more positive working environment. When workflows are streamlined, manual tasks are automated and data is integrated at an organisational level, people can get on with doing what they do best – the jobs they were actually employed to do.

Money savings

There’s no denying, once you decide on a digital business transformation strategy, that bottom line may indeed cause you to wince. But part of that strategy should also include projections about how your digital transformation will impact your financials well into the future. Not to mention, the ongoing insights into further cost cutting measures you can take once everything is up and running. 

And you’ll no longer be spending money maintaining outdated and expensive legacy systems.

Increased profits 

While you minimise costs, you’re maximising your potential for growth and increased profits. Any business transformation can expose or highlight weaknesses or gaps in your current business processes. Correcting the weaknesses or plugging the gaps can only lead to increased profit margins and revenue growth. 

The competitive edge

When you’ve transformed your business and moved into the digital world, you’re automatically giving yourself a competitive edge. Just how far this can take your business is now up to you. Can your business now move into the global marketplace? Can you offer free delivery? Are you converting more leads?

Digital transformation is also driving innovation. So, whatever you’re thinking of doing next, your competitor is likely thinking the same.

Enhanced customer experience and insight 

If your teams are working more efficiently and productively, just imagine how this will positively impact your customers. And when it comes down to it, without customers, there’s no business. 

The data your newly digitised business can collect has the potential to enhance each and every customer experience. The content on your website and social media, the very first email and right through to the delivery of your service or product. Every step can be tailored to suit your customers specific needs. 

Customer expectations

No longer can a business assume a lifetime of customer loyalty. And with so many other available options, the expectation of customer loyalty without any work from a business is as outdated as a dial-up modem. 

These days, an excellent customer experience (or CX) is a given, and failure to deliver means your customer will soon be doing business with your competitor. It’s really that simple.

Today’s customers expect a great digital experience on a variety of touchpoints. From your website, social media and apps through to your emails and even live chats, customer expectations are high. 

Whether that expectation is great branding or a seamless buying experience, there’s many reports and enough anecdotal evidence showing that a great customer experience is a key part for any sustainable business.

Business continuity 

Remember Kodak? The brand globally synonymous with quality photography.

You may be surprised to learn that it was a Kodak engineer named Steven Sasson who invented the very first digital still camera. All the way back in 1975. 

No, you read that correctly. Kodak had digital camera technology in 1975.

And Kodak’s reaction to this new filmless technology? According to a 2008 NY Times piece, management’s reaction was, “that’s cute—but don’t tell anyone about it.”

Failing to see the future is a death knell for any business. No matter how successful.

Embracing technology means embracing the future of your business. There’s simply no way around this. If you choose not to move your business into the digital world, you may as well go and sit next to the Kodak exec’s, once so convinced of their own immortality.

Not sure how to transform your business into the digital world? Kelly+Partners can help you take advantage of digital technology, including how to make it best work for your accounting and financial needs. Our team of specialists can also support you with the best finance and risk management strategies for your current and future requirements.