Why Digital Transformation is Significant for Businesses

Digital Transformation is a recurring term in today’s business atmosphere. But how does it gain so much significance? What is the reason behind most businesses turning to digitization? How digital transformation benefits businesses?   

Most businesses dramatically shifted to online channels during the pandemic period. Clients' preference for online shopping forced them to digitally transform. Within days and weeks, organizations digitalized processes. In fact, these processes were expected to last for one to three years. 

According to global business management consultant McKinsey&Company's survey, there was a rise in digitalization during this period. Around the world, the transformation went up from 35% before COVID-19 to 55 when the pandemic spread.  

It increased in the Asia-Pacific area from 33% to 54%. In Europe, the transformation level was 34% before the pandemic. It then touched 50% during the pandemic. In North America, it was 41% earlier and then increased to 60%.   

What significant cause has led businesses worldwide to shift to digitalization? Before diving deep into these details, we must know what exactly digital transformation is. 

Digital Transformation

Digital transformation is the method of bringing key changes to organizations through technology. The significant changes include developing new or improving current business processes, traditions, and customer experiences to satisfy varying marketing and business needs. T 

It beats the conventional areas of sales, marketing, and customer service. The transition from spreadsheets to smart applications gives the ability to rethink business processes. It also increases efficiency and provides business agility.  

Digital transformation includes AI introduction and cloud computing to improve customer experience. It may revamp the supply chain to better utilize machine learning. There are two concepts in digital transformation.

• Digitization: The method of transforming analog data into digital form. For example, developing spreadsheets as per the details on the paper records.

• Digitalization: Employing digital technologies to simplify business processes and projects. For example, training employees to employ the latest software platforms developed to market products quicker. 

Digital transformation needs a change from conventional ideas to a more combined developmental approach. This approach exposes new solutions that can enhance user experience and drive business growth.  

Why Digital Transformation is Significant  

Digital transformation improves the way an enterprise processes. This includes the systems, operations, culture and workflow. This change impacts every part of a firm and combines data from different sections to operate together more efficiently.  

For instance, enterprises can get a complete picture of client journeys utilizing workflow automation. They also get to know advanced processing including artificial intelligence (AI) and machine learning (ML) which was impossible before.    

Reduced cost is the major reason for many companies to transform digitally. Transferring data to a social, reserved or combined cloud environment reduces functional costs. It clears hardware and software charges and helps team members to focus on other major tasks.   

Digital transformation found its place even before the pandemic. But during the Covid-19 outbreak, the transformation took place in a few months. It helped firms to survive the disruptions.   

As per Dell’s digital transformation index, eight out of 10 companies urged digital transformation programs at the onset of the pandemic. 80% of organizations accelerated at least a few digital transformation operations during the year. In this era technology is a must for every business. 

Major Reasons for the Significance of Digital Transformation

• Everyone expects an on-demand service

• Employees require modern tools to be effective

• Security is a major business priority

• To harden business partnerships  

• Make better decisions faster

Benefits of Digital Transformation 

1. Enhanced Data Collection  

Digital transformation is a system to get the right data. It also includes it for business intelligence at a larger level.  

It creates an approach enabling various divisions in a firm to convert incomplete data into information across various stages. This creates a unified view of processes, creation, capital, and marketing prospects for the customer journey.    

One should thik about how to provide clients with more authority over their own details. Customers actively consider how their information is used.  

Digital transformation will show them that we care about their data. One can set in place strong privacy rules.    

One can back up data using NetSuite Cloud ERP and it is retrievable any time. 

2. Powerful Resource Management

Digital transformation puts together information and resources into a set of business tools. It keeps software and databases spreading out across the company. 

Digital transformation also reduces the vendor overlap. One can also put together applications, databases, and software in an omni-channel.  

Digitalization affects every part of a business and can lead to new ways of doing things. It can also find more efficient use of resources across units. Every department uses sensitive data, from trading and marketing to finance and the C-levels.  

It is crucial to enhance and protect data wherever it goes. Also, give tools that are easy to use so that the job will be easy.   

An example of a powerful resource management tool is the SRP module of NetSuite cloud ERP. This tool allows businesses to allocate resources to projects easily. This happens with the aid of consolidated, latest profiles of talents, preferences, expertise, and job priorities.  

Project managers can affirm that the appropriate personnel get the appropriate projects.

3. Improved Customer Experience      

Your digital transformation can not only make your teams more efficient but also give seamless experiences to customers. This includes everything from emails and user portals to digital products and how often you reach out to new prospects.    

Customers have great anticipations with regard to the digital experience. They are accustomed to having options, achieving better results, and obtaining goods quickly.  

The cloud ERP, NetSuite Customer Relationship Management (CRM) delivers an entire view of customer information. It enables customers to solve common problems themselves with a customer-center and obtainable knowledge base.  

4. Facilitates Digital Culture

Digital transformation empowers a digital culture by granting team members the proper tools for their environment. These tools make it easier for people to work together and help the digitalization process.  

This change in digital culture is significant for businesses to stay in the field. Team members can learn new skills and use technology to benefit from digital transformation.  

The digital transformation helped employees to work remotely when the pandemic outburst. It facilitates businesses to continue their processes unhindered with the assistance of different digital tools.

5. High Profits 

Businesses that adapt to digitalization increase efficacy and profitability. According to the reports by the SAP Center for Business Insights and Oxford Economics (Nakamura, 2022):     

• 80% of firms that digitally transformed in 2018 stated their increase in profits. 

• 85% reported their progress in market share in the year 2018.

6. Enhanced Productivity  

Proper tech tools that operate together can speed up your work and increase productivity. It enables team members to work faster and better by automating manual processes and combining data across the firm.  

Role of ERP in Digital Transformation

Regardless of your particular requirements, ERP software assists in changing your business for digital transformation. ERP can assist you to enhance your business through modern technology.  

It has an inevitable part in digital transformation. ERP has the potential to bring about revolutionary changes in many business processes.    

Digital transformation means changing your organization by making improvements to how it works. ERP software ties together all your business operations, making them more efficient, faster, and better for your customers. In simple terms, your ERP software is the basis of your digital transformation.    

It helps you to combine orders, inventory, accounting, returns and shipping. This platform helps you to change how your employees, customers, and vendors deal with new technology.

NetSuite Facilitates Digital Transformation 

After the digitization of every business there comes digitalization with the help of accounting software. The completion of all this process forms the real digital transformation with the cloud ERP software like NetSuite.   

The NetSuite cloud ERP software lets you assess:  

• Use data to help you make strategic decisions.   

• Gain visibility into processes.

• Betters the customer experience to digitally transform your business.

• How your resources work. 

• Automate the project.

• Make the most of your inventory. 

Best wishes on your digital transformation journey. If you need any assistance, we are here to assist you.   

Feel free to contact Jobin & Jismi. We are the solution providers of Oracle NetSuite with a decade of experience. We have experts to assist you better.   

References:

1. How COVID-19 has pushed companies over the technology tipping point—and transformed business forever. (2021, February 18). McKinsey & Company. Retrieved September 11, 2022, from 

https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever

2. Nakamura, M. (2022, August 9). Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart. SAP Insights. Retrieved September 12, 2022, from

https://insights.sap.com/sap-digital-transformation-executive-study-4-ways-leaders-set-themselves-apart/  

3. Oracle NetSuite. (2022, January 6). NetSuite Customer Service Management. Retrieved September 13, 2022, from

https://www.netsuite.com/portal/products/crm/customer-service-management.shtml