Jan 12, 2019
Digital Transformation has become the buzz of the decade. Every business, every process and every profession, today, is associated with digital transformation in one way or the other. With disruptive digital technologies, it transformed the way businesses function today.
The technology landscape is moving to digital transformation. It allowed businesses to define viable strategies and accelerate their business operations and growth, and avail new opportunities.
However, is it only for large-scale organizations? What about Small and Medium Enterprises?
The SMEs, during the advent of digital transformation, were very hesitant to employ this strategy as it was costing them beyond their budget. They could not afford a failure in adopting digital transformation. There were misconceptions that it is all the hype (of digital transformation). They were very skeptical about the advantage it would bring to them. It is reported that "80 per cent of companies that have undergone digital transformation efforts reported increased profitability, compared to 53 per cent of other companies." (SAP)
Today, digital transformation is a necessity rather than a luxury. It is one of the biggest assets for companies to increase their ROI and determine their value in the market.
How? Below are a few ways digital transformation increase profit:
One of the aspects of digital transformation affect revenue management is enhancing business agility. Business growth is determined by the changes it adopts. However, these changes often bring chaos in the organization. The inevitable changes go for a toss in the process of implementing.
With digital transformation, it is possible for businesses to set up and adapt to the changes in the market. In report defined by Fujitsu, it was realized that “71 per cent of business saw a faster response to changing market conditions”. As the market demands are dynamic in nature, digital transformation paves an efficient and flexible path for businesses to resolve their impediments.
Smart Operations and Automation of Workflow
With disruptive technologies like Cognitive Computing, Artificial Intelligence Machine Learning and Deep Learning, you can automate their everyday tasks and the workflow without very minimal human interference.
In this process, businesses do not waste their time and receive accurate results in seconds. As, the time taken for each project decreases, it allows businesses to take new projects and increase the profit. In other words, in the time, the company would take one project to complete, with digital transformation, the team can complete up to 3 projects reducing human labor.
Pay Only What You Use/Require
Most of the tools or techniques used in the process of digital transformation allow Pay-As-You-Go model. With this, you can only pay for what use and do not waste any resources. Often you must pay for resources which you may or may not use. With this traditional design, businesses go in for the loss. With Pay-As-Go-Model, it gives you the flexibility to invest only the assets you need.
For instance, cloud platforms, today come with the elasticity which allows to increase and decrease your database at any point in time without any hindrances. At the end of it, you can only pay for the space you have used.
Gain Competitive Advantage
It is realized that “around 89 per cent of medium and large businesses worldwide are currently undergoing the digital transformation, with 34 per cent of those already returning benefits. In such a landscape, you do not want to be left behind.
Moreover, adopting best practices can help gain the competitive advantage in this digitally driven world. As digital transformation gained momentum in the last few years, it is crucial that you establish a key digital strategy that drives your digital transformation in entirety.
More customers are using digital platforms and smart devices than earlier. Digital transformation allows targeting right customers for your business. And, your business is no more limited to a specific region, the whole globe is your audience. There is a high demand for products and services all the time.
With digital transformation, individuals from any part of the world can access your services. In addition to this, digital marketing can take to greater heights than you can imagine. There are high-end marketing tools that are available to today to automate your end-to-end marketing online. One of the renowned examples includes Marketo.
Digital Transformation allows providing smart solutions that are customer-centric in nature. Disruptive technologies help you to understand the customer needs in a specific time and meet those needs. Moreover, you can add features such as personalization and enhance user-experience exponentially. With digital transformation, you can make your business a smart one without strenuous efforts.
These are a few ways in which digital transformation allows you to increase your profit. There are several other dimensions which can help to beat the competition. And, besides the available tools, rapid app development and SAAS model has made digital transformation easy without exorbitant costs involved in it.