Digital transformation will save you money
How digital transformation can save costs and improve business efficiency and moving away from legacy systems.
- Why digital transformation saves on costs
- Adopting digital functionality to keep up with competitors
In an era of digital production, more and more operating systems are moving towards cost-effective and efficient methods to help their business operations.
If your business is still using tools that need updating, such as not digitising your account books or appointments, digital transformation will help automatise work flow.
What is digital transformation?
- Digital transformation is the process of using digital technologies to create new or modify existing business processes. This includes enhancing the work culture and customer experiences to meet changing business and market requirements (Salesforce 2023).
- Business digitisation has emerged as a critical driver of success for businesses, offering a multitude of benefits across various industries.
- By integrating advanced technologies, business digitisation helps business owners streamline operations, such as enhancing customer experience, increasing revenue and staying competitive in this fast-paced, technology-driven world.
- Many businesses have moved towards digital innovation because of its cost-effective nature. The transformation helps with digital business solutions by freeing up hardware and software costs, which gives time for your employees to work on other projects.
- The first step is checking whether your business is running on legacy systems.
What are legacy systems?
- Legacy systems are operations that are outdated, using old hardware and software that doesn’t allow you to interact with newer systems.
- Change can be difficult; however, keeping these systems can be expensive over time, and upgrading to a new system needs investment and the willpower to do so.
- Maintenance is costly, particularly if you are fixing up old tools instead of transitioning into automation where possible.
- This transformation also fosters agility, allowing businesses to adapt swiftly to changing market dynamics.
Advantages of digitisation
- Enhanced data collection through digital tools
- Businesses collect tons of customer data, but the real result is optimising this data for analysis to drive the company forward. Consistently reassure your customers that their privacy and data are in safe hands.
- This process creates a way to translate raw data into insights, mainly information on the customer’s journey, operations and production. The insights are how your business can manage its own finances and recognise business opportunities.
- The implementation of digital tools such as cloud computing, data analytics and artificial intelligence enables efficient data management, leading to informed decision-making and improved resource allocation (McKinsey & Company 2023).
- Improved productivity through automation
- If your business makes use of multiple software and databases, there are digital business solutions to consolidate your company resources. This will uncover inefficiencies within your teams by delivering intentional experiences for your customers to buy into the product.
- With the right tools that work together, this can improve your business productivity.
- Automating many manual tasks and integrating data throughout the organisation will empower team members to work more efficiently.
- Enhanced customer experience
- From email communications to user portals and digital products, customers have high expectations for digital experiences. This decreases usage and costs of print and postage and assists with personalisation.
- There are many competitors offering consumers what they need, such as easy, user- friendly navigation and fast delivery. Improving your customer experience plays a big factor in customer retention.
- Monetisation
- Undergoing technology-driven change can lead to an increase in profits and market share and higher growth compared to competitors who do not.
- Using customer data analytics, you can track consumer behaviour and target their needs to increase sales. The increase in projects can be directed into future projects that can help grow your overall business.
- Offering these transformations can empower your business and optimise operations.
References :
McKinsey & Company. 2023. What Is Digital Transformation? [Online] Available: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-digital-transformation (Accessed 8 August 2023).
Salesforce. 2023. ‘What Is Digital Transformation?’ [Online] Available: https://www.salesforce.com/eu/products/platform/what-is-digital-transformation/ (Accessed 8 May 2023).
Talend. 2023. ‘What Is a Legacy System?’ [Online] Available: https://www.talend.com/resources/what-is-legacy-system/ (Accessed 8 May 2023).