According to the 2022 report by McKinsey & Company, There has been a 10 year leap in Digital Transformation from the pre-pandemic time to post-pandemic time. Irrespective of the industry, or area of expertise, Digital Transformation has become the medium for growth. The presence of digital transformation has creeped into the Pharma, Medical, other Healthcare, Manufacturing, Construction, Mining etc. industries. Eight in ten organizations fast-tracked their digital transformation programs in 2020, according to Dell’s Digital Transformation Index 2020, which surveyed over 4000 business leaders globally. In addition, 89% said the pandemic highlighted the need for a more agile and scalable IT environment.
There could be several reasons that your organization might be in a dire need for Digital Transformation, could be disruptions like the pandemic have uncovered factors that impact or how your workforce implementation might be inefficient due to obsolete technology. It could also be how robots and automation have only just begun to change the way people work, causing the business strategy needing to change to incorporate employee data, automation, AI and human-centric leadership resulting in short resulting in integration and standardization across the organization.
Listed are 5 reasons you should implement Digital Transformation,
Better resource management,
Every year Organizations spend countless lakhs of rupees on resources like manpower, software tools and technology, etc. Unfortunately, not many yield the results as expected. There were several issues the leadership and CXOs of top companies had to undergo during the pandemic phase. With several organizations implementing a remote work atmosphere, there was a lot of apprehension on the management of resources, especially manpower. Any analysis about the future of work should also account for what business leadership is currently experiencing: the aftermath of the disruption caused by the pandemic and how it has already impacted your current workforce vision, strategy and execution.
As hybrid models and work from home have become a permanent option across the globe, including ‘the great resignation,’ organizations have an urgent need to depend on digital capabilities to select, hire, train, and manage resources. The essentiality of implementing a Standardized and Integrated approach towards handling every sector within the organization across the globe to implement collaboration and innovation has become a mandate. This is possible only with Digital Transformation.
According to the IDC 2020 statistical study, digitally transformed organizations are projected to contribute to more than half of the global gross domestic product (GDP) by 2023, accounting for $53.3 trillion and as per PTC 2019 survey, 70% of organizations have a digital transformation strategy or are working on one.
With Digital Transformation, the chance of human error is greatly reduced, the work output to time consumed increases exponentially with minimal involvement on the human resources aspect. With Digital Transformation, there is integration and standardization established across various domains within an organization resulting in enhanced productivity.
In the manufacturing market, in 2020, digital transformation was valued at $263 billion, it is expected to reach $767 billion by 2026 and work at a growth rate of 19.48% over the forecast period 2021-2026 according to Mordor Intelligence. According to a study by Deloitte in 2020, the implementation of digital technologies can help accelerate progress towards enterprise goals such as financial returns, workforce diversity, and environmental targets by 22%.
With Digital Transformation, organization have a competitive advantage driving them towards organizational goals aligning with Business Strategy, data can also be managed much more effectively and efficiently and the business engagement, innovation and delivery is much higher, all driving an increase in profits.
Better Customer Experience
According to a study by Forbes Business Magazine, by 2020, 40% of all Digital Transformation projects will involve Customer Experience as a primary factor. According to McKinsey, focusing Digital Transformation on the customer experience can result in a 20-30 percent increase in customer satisfaction and economic gains in the region of 20-50 percent. Forrester predicts that customer interactions through digital platforms will increase by 40 percent.
Digital Transformation has transformed consumer habits, consumers these days have high expectations from Organizations in terms of experience since they are aware and know the benefits that can be reaped. Customers are now looking for personalization, multi-channel seamless experience and quick solutions. These are only possible with the implementation of Digital Transformation. With Digital Transformation, customers have access to agile solutions, quick response from the Organization’s side and tailored solutions and tips, thereby making it a wholesome solution for customers.
Improved Intra-Organizational Collaboration
According to a recent study, collaboration and teamwork improve company sales by 27 percent, product quality by 34 percent, and product development by 30 percent & staff in collaborative workplaces are more than 50 percent more effective at getting daily tasks done than independent workers.
The whole intention behind a Digital Transformation journey is to align the Business strategy with Organizational goals to drive efficiency and innovation within an organization. Improved communication across various domains within an organization creates an integrated and standardized approach, thereby making task flow seamless and transparent. There are also several advantages to this: work from anywhere, anytime and any device, but still maintaining collaboration digitally has become a reality during the pandemic time. This has given us all the more reason to implement Digital Transformation.
Digital Transformation is a reality that we cannot escape from, the sooner we start implementing the easier the transition to slip into. It has way too many benefits to avoid the implementation. There are several disruptions that hinder the implementation of Digital Transformation like lack of planning or strategy implementation, poor budget allocation, indecisiveness of the C-suite guys, lack of proper talent and lack of in-house or employee expertise.
It is a Herculean task to find people with the required technological experience and awareness to be onboard. Organizations have now taken a turn towards short bursts of outcomes-focused engagements with Independent Industry Consultants having expertise in Digital Transformation. It's extremely crucial to find the right fit into the organization.
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