In recent years, many businesses have taken advantage of various types of technology, such as artificial intelligence and cloud computing, to transform their business. Digital transformation has led to a new era for businesses to evolve their business processes, streamline operations and enhance relationships with customers and shareholders.
To learn more about digital transformations and how they have aided in evolving business processes and shareholders’ experience, continue reading!
What Is Digital Transformation?
Digital transformation is incorporating technology into your systems to help your business gain benefits that will aid your business in gaining a competitive edge!
The various types of technology businesses use and how they incorporate them vary greatly.
However, these technological transformations usually have similar goals for businesses. Initially, they aimed to refine old business processes; however, they are now taken advantage of to introduce new business processes to aid your business in gaining a competitive edge!
How To Incorporate Digital Transformations Into Your Business Safely?
Software Composition Analysis (SCA) ensures that you no longer have to worry about the security threats that digital transformations ignite in your business!
The technology that digital transformations require often includes third-party and open-source software components with some faults that external attackers can manipulate to acquire unauthorized access to crucial and private business data. These hackers can either leak this data to others or use it to hinder business processes, compromising business operations.
This is why experts recommend that businesses incorporate Software Composition Analysis (SCA) into their business systems. SCA is a tool that secures the business and minimizes risks by locating and identifying the vulnerabilities present within open-source and third-party software components. SCA tools then provide a comprehensive guide for fixing these vulnerabilities.
The Benefits of Digital Transformation on Business Operations
Now that you have understood digital transformation and how to incorporate it safely into your business, let’s explore its various benefits to business operations!
1. Boosted Productivity and Efficiency
One way that digital transformation is brought about is by using digitized information to make your traditional business processes easier, simpler, and more efficient. This part of digital transformation is referred to as ‘digitization.’
Let’s take the example of customer service- it has always been an important element of successful businesses. Innovative technology has made customer records easily accessible via devices rather than spending precious time combing through files stored in your warehouse.
Therefore, the basic idea of customer service has stayed the same- Filing a complaint, deriving the relevant information related to said client and issue, and then offering a solution remains the same.
The only difference is that digital transformation has made this process much more efficient by making a single employee capable of carrying it out in mere minutes!
2. Enhanced Customer Relationships
Businesses can now cater to customers 24/7 using digital platforms and artificial intelligence.
With customer solutions being easily accessible, customer loyalty has also skyrocketed. Moreover, technology and social media platforms have allowed businesses to remain closely connected and establish informal customer relationships.
Furthermore, businesses can access an influx of customer data by leveraging customer relationship management (CRM) and the Internet of Things (IoT). These systems can then organize, examine, and utilize this data to predict customer behavior better. Based on these predictions, businesses can take measures to fulfill customer expectations beforehand, increasing customer retention rate.
3. Optimize Employee Productivity
Artificial intelligence has become a trademark in the business realm and is popularly used to automate various processes.
Artificial intelligence has led to various employee roles becoming redundant, leading to human capital being replaced by artificial intelligence. Such redundancies in various roles have led to great cost reductions for businesses; however, on the flip side, it has led to unemployment rising when employees cannot adopt new in-demand skills.
Human capital is still crucial to a business’s success, and now prevalently, employees are collaborating with AI to achieve their end goal better. This has led to increased employee productivity and has led to employees garnering more time for more complex tasks that have a major impact on the business.
Such collaboration with AI has also led to employees taking up roles that involve envisioning and planning the future of the business.
4. Increased Innovation and Entrepreneurship
With digital transformation, your business can give birth to the newest trends. This can be done by establishing a solid digital transformation strategy and leveraging the technology provided to entrepreneurs.
Individuals with innovative mindsets scattered worldwide can instantly connect and establish teams using cloud-based collaboration tools. When individuals with similar mindsets connect, it can lead to new projects and ideas taking root.
Furthermore, data analytics tools can inform businesses about market trends and customer preferences. Businesses can take advantage of this information by bringing out products guaranteed to succeed in the market.
Taking advantage of digital transformations will no doubt level up your business. However, it is important to understand that such an upgrade will also come with risks you must gear up against using the appropriate measures and tools to maximize your business’s potential.