Business needs to digitize. This is growing at a rapid pace as more consumers swarm the internet to make the best purchases. The internet has a major role to play in the shift towards the digitization of business processes. Read about full-proof strategies to digitize business.
Assume that you need to buy a new television. You go to your nearest electronic store and buy one with a 5% discount. A few days later, you find out that you could’ve bought the same television for a 10% discount from another store. And even made a 5% cash back on the same tv, from the same store’s online portal or mobile application.
It’s obvious that the second store might’ve missed out on a few customers. However, their overall sales will be much higher than in the first store. Moreover, people who bought from the second store will definitely come back for future buys. Probably, those who didn’t but came to know later about their amazing deals on offer will buy from the second store.
You’ve probably realized by now that digitalization of business is important. From a business owner’s perspective, you get a bigger audience. From a customer’s perspective, better deals. And from the market’s perspective, the discovery of small and medium-sized businesses. If you are interested in digitizing your business we are here to help you.
Important Business Digitization facts You Should Know About
As an entrepreneur and business enthusiast, your goal will always be to improve your existing business processes. In addition, you want to come up with new business models, and create exciting opportunities. So, what is the impact of digitization on the business you ask? You’re assured of saving time to develop new products and services, making informed management decisions, and spreading your organization’s reach to all sections of the market. Not to forget, your growth and expansion will disrupt archaic business strategies. These are some of the benefits of digitizing business.
Basically, developing a digital strategy for business processes means leveraging technology to accelerate performance. Here are a few facts and figures to highlight the need for digital automation and what exactly it can offer once adopted. Want to digitize your business?
- Why Should You Digitize Your Business?
The numbers given above must’ve impressed you. And you must’ve probably guessed by now that digitization is a major requirement of your business growth. That’s well and good. But, what are your objectives?
The sole motive behind the introduction of something new for any process is an improvement.
What do you want to improve?
If you didn’t know already, business digitization is not something new. It has been going on for years. Basically, physical data undergo a digital transformation to be accessed, stored, secured and manipulated. Accordingly, organizations used the data to cause a digital disruption. This also brings in profits and accelerating business growth.
Here’s a little more on what are the underlying factors that push businesses to opt for a digital makeover.
You may also like to read: 18 Fundamentals To Know Before Launching Your Own eCommerce Venture
Underlying factors of Business Digitization
Ready When They Are
The motive behind digitization is primarily to meet the growing demands of customer expectations. Now, one might say that digitizing existing systems could be the step forward. However, that’s not the case. An organization will have to reinvent its entire business model while focusing on the vulnerabilities and adaptability. Simply put, you must know if your business is ready to accept digitization and also be clear about the prospects.
Keeping Up With Tech
Access to the internet has become a right for billions on this planet. It’s rather cheap nowadays and available across multiple platform and devices. Technology has webbed people together. The introduction of low-cost, smart devices and various other technologies such as cloud computing compel businesses to come aboard the digital bandwagon and move on from obsolete technologies.
Just compare the consumers from back in the days and today. They’re so much apart in terms of how the latter have become reliant on technology. The living generation and those in the future will fully adapt to technology in a few years from now. They’ll use it to share private data, stay connected, and tell one another about anything amazing online. With so much potential and promise in technology, the push for digitization had never been greater.
Return On Investment
A lot of investment is poured into digitization for businesses. The market often rewards those who get a head-start are with. Smart techniques to perform better and limit errors are what consumers crave. If your business develops a digital strategy framework to make the consumers lives better, the returns will definitely be worthwhile.
Survival Of The Fittest
Developing a digital strategy will become a necessity for your business. And here why is it—survival. The needs of consumers will be erratic. For a business, it means to be able to adapt and transform quickly with changing demands. Of course, the returns might not be as you expect by following digital trends.
Some might profit immediately while others might have to wait longer. But, whatever the case, your business will have to digitize sooner or later in order to survive and grow.
Data is money for every firm and individual. For a business, the more, the better. But no business wants their own data shared, stolen, and sold. Businesses running on obsolete technologies with weak security systems often become easy prey for hackers. The need for digital security becomes important. This is what one cannot compromise with. Security will be key in defining the success of an organization in the coming years. The weaker your security in business, the weaker will be your appeal.
Business Digitization Statistics
The experts have projected the market for digital transformation is to hit at least $360 Billion USD by the year 2020 with a 19.6% growth rate compounded annually
What more than 70 % think of Digitizing Business
- 96% of businesses see digitization as important and critical
- 88% of organizations admit that they are in the process of undergoing digital transformations
- Almost 87% of businesses agree that digitization increases competitive opportunities
- 87% of businesses and organizations anticipate digitization to have positive consequences on employee productivity and experiences
- 85% of organizations feel that they have a timeframe of two years to plan and execute a digitization process, failing which they’ll either suffer financial losses or be overtaken by their competitors
- 71% of businesses say that they’re able to tempt new and experienced talent as a result of developing a digital business strategy
What more than 40 % think about Business Digitization
- At least 50% of businesses report that they do not have a stellar digitalization strategy
- On the other hand, 45% of executives expect an increase in revenues to be one of the benefits of digitalization
- 44% of business executives feel that understanding all business processes and analyzing how digital transformations can positively impact them are the missing skills in an organization
25% and more people believe about Digitizing Business
- 39% of businesses say that digital transformation has helped them accelerate the progress of real-time transactions
- 32% of organizations report that a digital strategy plan has helped them to increase their operational efficiency
- As much as 31% of businesses accept that they invest at least 15% of their revenues in digitization and new technologies across all sectors of their business
- At least 28% agree that digital innovation has helped them to acquire new customers
- 25% of an organization’s executive feel that a digitalization strategy will improve customer experience
- 25% give credit to digital transformation for speeding up the product development cycle
- Organizations and businesses that have already gone through the digital transformation phase report that their revenues are up by 30%. Moreover, customer engagement, employee morale, market share, and web and mobile engagement have also heightened by 37%, 37%, 41%, and 32% respectively
Digital Transformation Tips to Follow
Thanks to giants like Google and Amazon, customers expect all businesses to match their responsiveness, flexibility, and efficiency. The process of digitization might overwhelm businesses built on older systems and technologies. Moreover, this might result in delaying or totally opting out of digitization, thus creating opportunities for digitization-ready businesses to swoop in and steal the show.
But digitization and overhauling of systems don’t have to be complicated. We are breaking down the entire process into the following for easy understanding.
Know What Your Customers Have To Say
The overall success of your business will depend on how satisfied you keep your customers. If you have plenty of customers and keep adding more every now and then, whilst keeping them happy then your sales and revenues will grow by leaps and bounds. Another benefit of adding more customers means that you’ll be getting plenty of feedback. You can then use these feedbacks to improve your products and services.
There are plenty of tools available today that can help you assess customer relationships with your firm. For instance, you can use the Net Promoter Score that reflects customer loyalty with respect to revenue. Such metrics are important and require investment in the form of human management for day-to-day monitoring and technical resources.
Manage Interactions With CRM
You’ll also have to install a Customer Relationship Management (CRM) system so that you maintain communication between your firm and existing/potential clients. Think of the system as a tool that manages communication within the team, but more importantly, communication with customers. You get complete details of your clients with a CRM system. You can use it to relay information to operation HQ about inventories and production demands.
What’s more, the customer support team in your firm can facilitate effective communication with customers. Your sales and marketing teams can also use CRM to exchange information between them about the pipeline and marketing campaigns. An important point to note about CRM systems is that you should integrate one after consulting a digital strategist. One, who has worked with high-quality CRM systems in the past. The reason being, once you integrate a particular CRM system, it’ll be really difficult to switch to another.
Investing In Business Intelligence
As mentioned previously, data is important for every firm. And how you manage it for business development is even more crucial. You must be able to generate and store data from day-to-day transactions and recognize patterns. Come up with unique strategies, and of course, structure it methodically. It is important to revisit and review the data.
You could store data on spreadsheets but that’ll use up too much human labor and time. Not to forget, manual errors and loss of data. This is where you need to integrate Business Intelligence systems. These run on special algorithms that recognize, gather, manipulate data. Additionally, these are capable of drawing conclusions to make informed business decisions. What’s more, they represent real-time data in easy-to-read and understand visual formats. Moreover, they’re structured and backed-up for safekeeping. This system must be available on all operational sectors of your firm so that to pass on information quickly.
Improve The Team
There are two ways in which you can go about digitization. The first way is by hiring digital consulting firms. The other way is by building your own in-house team. Digitization is now a priority for most businesses all over the world. Therefore, probably there will be any city without a digital strategy company. So, It is advisable to hire a digital strategy firm.
If you’re building one, look for talent that can mobilize resources and digitize processes quickly. However, in the hiring department, you’d want to hire managers first who will lead different teams.
You need managers who can make a commitment for a long time and have stellar reputations. Your team must be well-versed in the latest technological advancements and digital trends. Moreover, they should be capable of building modular systems that have tons of flexibility, no errors, and scope to scale.
Sharing Within The Organization
What is digital strategy if no communication and sharing of resources take place within a business? Nothing, it’s nothing—an unsuccessful and doomed-to-fail strategy. You should save a chunk of your budget for Knowledge Management Systems (KMS) that’ll pool together all the resources and knowledge your firm possesses. When in place, you can utilize KMS to build communication between all team members. What’s more, newbies joining your business can also check in immediately to get up to speed. Team members can share any roadblocks faced on the road to the digitization and solve together at a much faster pace.
You might feel that the digitization process is complicated and time-consuming. Well, it might consume time and you might have to set aside some of your funds for the transformation, but the possibilities and benefits are endless.
To quote George Westerman from MIT Sloan, “When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.”