Big data analytics are a valuable tool used by companies to arrive at decisions that affect productivity and profitability. However, in order to effectively access and analyze this data, they must have the appropriate resources in place. The concept of digital transformation, integrating technology strategically into all areas of the infrastructure, is changing the way businesses develop new processes, solve problems, and improve customer experiences.
According to Gartner, 87% of senior business leaders surveyed have made digital transformation a priority. 79% of corporate strategists agree that it has created new revenue streams.
How can digitalization directly impact businesses? There are several benefits that can be realized in any sector.
More Effective Decision-Making
- Companies that succeed in data analysis are making better decisions in marketing, production, and other departments. Rather than relying on intuition and instinct, information obtained from technology is resulting in better trend forecasting.
- Digitization can help improve customer communication. An example of this is retailers who use geo-location apps to allow stores to communicate with customers in real time. Companies also are using social media networks to interact with customers for more efficient product deliveries. Consumer data is collected and analyzed to more accurately predict customer behavior.
- Digital transformation facilitates improved communication and collaboration among the engineers, designers, and product managers in an organization. Through the use of intuitive interfaces and other tools, company personnel are better able to participate in data sharing and decision-making.
- The explosion in technology growth has created demand for many new skill sets in artificial intelligence, augmented reality, cloud computing, and machine learning. Businesses can foster development of these skills in their staff to increase productivity.
There are, however, some challenges organizations must face with digital transformation.
- The initiation of new processes and procedures often results in employees having difficulty adjusting to these changes. The key to this is being consistent and transparent in the process. Employees should be kept engaged and current on the process. This will help them feel empowered and a part of the team.
Need For Outside Expertise
- For a successful digital transformation, an organization must have experts with the right experience and know how. It may be necessary to seek business partners and new hires outside that can assist on this transition.
- With the many changes occurring in digital transformation, a substantial investment is necessary to ensure project success. The transition should take place in phases over several years if necessary so as not to quickly run through resources and put the budget at risk.
In today's highly competitive corporate world, it is crucial that organizations consider jumping on the digital transformation bandwagon. Despite the challenges that remain, going digital has proven to enhance productivity and increase profitability in organizations across every business sector.
Microsoft Dynamic Solutions can assist your business in its digital transformation project.
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