In contemporary businesses, digitalization is gradually gathering steam like a freight train. This is evident from the total amount spent on information technology (IT) products and services. In 2022 and 2023, the projected amounts of worldwide IT spending are $4,431.6 billion and $4,673.7 billion, respectively.
The term “digitalization” refers to the practice of implementing various types of digital technology across an organization. It brings substantial shifts in the way a company conducts its daily operations. If you want to thrive in the modern-day cutthroat business environment, you must leverage this new development.
To get a better idea about the concept of digitalization, read on to come to terms with its benefits:
- Quality Customer Service
Customer service can virtually make or break your business. Even if your product or service blows people away, they will not buy from you if your customer service is terrible. According to well-documented research, 90% of Americans consider a company’s customer service before making a purchase. Guess what? Tapping into digital transformation will result in improved customer service. To begin with, you can learn a lot about your customers’ habits using technological tools. It will allow you to find areas for growth and select optimal strategies for enhancing customer service.
Investing in POS software is another tried-and-true way to boost customer experience. Provided the plethora of options, you can even select a business-specific POS system. For example, if you are into the laundry business, opt for a laundry POS system for better ROI.
Besides, you can take customer service to a whole new level by implementing chatbots. Many individuals today despise making phone calls, especially to strangers. Also, call waiting lines are a major source of frustration because everyone wants quick responses nowadays. That is where chatbots come into play. Chatbots are software powered by AI and designed to communicate with human users via various platforms such as websites or Facebook messenger.
- Saving Money
Your organization likely consists of many different teams, each of which handles its own unique set of processes. Take the example of the HR department. Be it onboarding or offboarding; your employees will have to engage in time-consuming processes to get the job done. An automated workflow can speed up the entire operation by eliminating the need for human intervention. Everything that happens during the process can be easily synchronized with your current setup. That way, workers stay focused on their core strengths.
Without accurate data on purchases, work orders, and other operational expenditures, supply chain management is another area where organizations may quickly rack up losses. Technology provides the company with a streamlined supplier and distribution network. This improves the company’s negotiating power with domestic and foreign suppliers.
Statistics suggest that the digitalization of information-intensive activities can reduce expenses by as much as 90%. The money saved from not having to hire extra staff to do routine, non-value-added work can be used toward expanding the business by attracting new customers.
- Improved Transparency And Accountability
When anything goes wrong in an organization, employees are more likely to point fingers than to take responsibility for their actions. Over time, the process becomes more convoluted because it keeps getting difficult to pinpoint exactly where the mistakes were made that hindered the company’s objectives.
Transparency keeps such issues at a safe distance by providing a clear view of the origin of each problem. Most firms rely on authorization and approval to advance the process efficiently via the organization’s numerous departments. Thus, transparency issues will cause delays in operations and hurt overall productivity.
Fortunately, you can bolster and spark transparency and accountability efforts with cutting-edge technological tools. With an automated workflow system, you can delegate tasks to the appropriate teams and keep tabs on the growth of any project your company is undertaking.
- Employee Satisfaction
Many businesses put a premium on their workers’ health and happiness. Evidence suggests that an employee’s enthusiasm for their profession is more important than the number of hours they put in. In the past, motivating employees consisted mostly of giving out monthly or annual awards to the top performers. Perhaps supervisors would give a “pat on the back” when employees did well. The bright young minds entering the profession today, however, want rapid gratification. Old engagement strategies no longer work. This is especially true of employees who are geographically dispersed.
In response to this challenge, many businesses are embracing novel approaches such as the four-day workweek and flexible working hours. Among other initiatives, digital transformation also plays a big role in employee satisfaction.
According to a survey, 72% of stress-free workers attribute their efficiency to their easy access to technology. Moreover, 64% stated that automation reduces their load and relieves stress. The use of modern technology helps workers in the digital age perform their jobs more effectively, which in turn boosts employee confidence and productivity.
- Fast Product Launches
When it comes to gaining a competitive advantage in the marketplace, business owners need to be prompted about introducing new products. If you cannot anticipate change and respond quickly, your competitors will override you sooner rather than later.
Businesses that want to standardize their internal procedures would do well to implement enterprise-wide digital strategies designed to get everyone on the same page. It will enable you to keep your hands on the market pulse all the time and react quickly with the help of predictive analysis tools.
- Optimal Resource Management
Having adequate resources available is crucial in today’s cutthroat business climate. For optimum growth, businesses must make the most of their resources, including capital, labor, suppliers, and inventories. Many businesses have turned to cloud computing so that IT resources can be shared between their different divisions. As a bonus, the cloud lets companies pay for only the resources they actually use. Apart from that, IoT facilitates real-time tracking of company assets, providing better insight into resource utilization and highlighting areas for improvement.
The corporate world has firmly established its presence in the digital sphere. In today’s highly competitive market, failing to digitize your business at the optimal time might cost you in the long run. To get the most out of digitization for your business, you should evaluate how far you need to go and set concrete long-term objectives with measurable success criteria.