Benefits of Digital Transformation

In today’s world, with the rapid development of technology in every field, the concept of digital transformation is becoming increasingly important. Digital transformation is a process that aims to transform business processes, business models and business culture through the use of digital technologies.

Digital transformation can help businesses increase competitiveness, improve customer experience and make business processes more efficient. Therefore, it is important for businesses to understand the requirements of digital transformation and take the necessary steps to achieve this transformation.

Expectations for digital transformation

Some statistics to clarify the issue:

  • According to the McKinsey Global Institute, digital transformation is expected to contribute an additional $15.5 trillion to the global economy by 2030.
  • According to the McKinsey Global Institute, it is estimated that digital transformation can increase the profitability of the fastest growing businesses by 20-30%.
  • According to Gartner, customer experience has become one of the most important determinants of the competitiveness of businesses.
  • Forbes Insights reports that 74% of businesses will accelerate or expand their digital transformation efforts in 2022.
  • The World Economic Forum predicts that digital transformation will lead to an 85% increase in the global workforce by 2023.
  • IDC predicts that global cloud computing spending will reach $494.7 billion in 2023.
  • Cisco predicts that global internet traffic will reach 1.3 zettabytes in 2023.
  • Salesforce predicts that the global customer experience (CX) market will reach $452.3 billion by 2023.
  • It is expected to grow from $469.8 billion in 2020 to $1,009.8 billion by 2025, with a CAGR of 16.5% during this period .

Benefits of Digital Transformation

Let’s list the 10 most important benefits of Digital Transformation;

1. Increased efficiency and productivity

Digital technologies; It can save businesses time and costs by automating business processes and increasing efficiency. For example, robotic process automation (RPA) and artificial intelligence (AI) can automate manual tasks, enabling employees to work on more strategic and creative work.

According to a study by Deloitte, 50% of businesses managed to reduce costs by using digital technologies.

Here are some ways digital technologies increase efficiency and productivity:

  • By automating business processes, it can reduce the number of manual tasks.
  • By using data analysis, one can make better business decisions.
  • It can stimulate innovation to develop new products and services.
  • It can help employees work more efficiently.

2. Better customer experience

Digital technologies can help businesses deliver more personalized and engaging experiences to their customers. For example, augmented reality (AR) and virtual reality (VR) can help customers better understand products and services.

According to a study by PwC, customer experience improvement can increase businesses’ revenues by 10-15%.

According to a study by Salesforce, customer experience improvement can increase businesses’ customer loyalty by 30-50%.

Here are some ways digital technologies can improve customer experience:

Personalization : For example, AI can help businesses better understand their customers’ needs and preferences by analyzing customer behavior.
Engagement : For example, augmented reality and virtual reality can contribute to customers’ better understanding and experience of products and services. Regarding this, you can examine the Ar-supported remote support software of OnremoteAG .
Convenience : For example, mobile applications and chatbots can offer customers the ability to receive service at any time and from anywhere.

3. Increased competitiveness

Digital transformation can help businesses enter new markets, develop new products and services, and create new business models. This can contribute to increasing the competitiveness of businesses.

According to a study by Gartner, 70% of businesses believe that digital transformation will provide a competitive advantage.

Here are some ways digital transformation can increase the competitiveness of businesses:

Access to new markets : For example, e-commerce allows businesses to expand into global markets.
Developing new products and services : For example, AI can help businesses use data analysis to develop new products and services.
Creating new business models : For example, cloud computing allows businesses to increase revenue and offer more flexible services by offering a subscription-based business model instead of traditional software licensing. This can help businesses take a more customer-focused and cost-effective approach

4. Better risk management

Digital technologies can help businesses better understand and manage risks. For example, big data analytics can help businesses better understand their customers’ behaviors and trends. This can help businesses detect risky situations earlier and take precautions.

According to a study by IDC, risk management of digital technologies could increase the growth of the global economy by $1.5 trillion by 2023.

Here are some ways to improve risk management of digital technologies:

Risk analysis : For example, big data analysis can help businesses detect risky situations earlier.
Risk management tools : For example, risk management software can help businesses monitor and manage risks.
Risk management training : For example, e-learning can help businesses train their employees on risk management more quickly and easily.

5. Better decision making

Digital technologies can help businesses make more accurate and timely decisions. For example, business intelligence tools can enable businesses to analyze data more easily and quickly. This can help businesses better evaluate market opportunities and make strategic decisions.

According to a research conducted by Deloitte, 50% of businesses think that digital technologies will help them make better decisions.

Here are some ways digital technologies can improve decision making:

Data analysis : Digital technologies can help businesses access more data and analyze it more quickly and easily. This can help businesses make better decisions.
Business intelligence tools : Digital technologies can give businesses access to tools specifically designed for data analysis. These tools can enable businesses to analyze data more easily and quickly.
Artificial intelligence : Digital technologies can enable businesses to make more complex decisions using new technologies such as artificial intelligence.
A research suggests that AI technology will be built into the processes and products of at least 90% of new enterprise applications by 2025.

6. Better collaboration

Digital technologies; It can help businesses collaborate more effectively with employees, customers and suppliers. For example, cloud computing allows businesses to easily collaborate with employees from all over the world.

According to Markets and Markets, the size of the digital transformation market is estimated to grow at a compound annual growth rate of 19.1%, from $521.5 billion in 2021 to $1 trillion in 2026.

Here are some ways digital technologies can improve collaboration:

Communication tools : For example, video conferencing allows businesses to communicate face-to-face with employees from all over the world.
Collaboration tools : For example, cloud computing allows businesses to share and co-edit files and documents.
Social media : For example, social media can be used by businesses to collect customer feedback and find new customers.

7. Greater flexibility and responsiveness

Digital technologies can help businesses adapt to changing market conditions more quickly and easily. For example, cloud computing offers businesses scalability based on their workloads. This can help businesses use resources more efficiently according to changing demands.

Here are some ways digital technologies can increase businesses’ flexibility and responsiveness:

Scalability : For example, cloud computing allows businesses to increase or decrease data center capacity based on workloads.
Automation : For example, robotic process automation (RPA) can enable businesses to automate manual tasks.
Data analysis : For example, big data analysis can help businesses better understand customer behavior and trends.

8. Improved collaboration and communication

Digital technologies can help businesses collaborate and communicate more effectively with employees, customers and suppliers. For example, video conferencing allows businesses to communicate face-to-face with employees from all over the world.

Zoom has reached more than 2 billion registered users since 2020.

In addition, while the average number of daily active users was 150 million in 2022, this number reached 300 million in 2023.

Here are some ways digital technologies can improve collaboration and communication:

Communication tools : For example, video conferencing allows businesses to communicate face-to-face with employees from all over the world.
Collaboration tools : For example, cloud computing allows businesses to share and co-edit files and documents.
Social media : For example, social media can be used by businesses to collect customer feedback and find new customers.

9. Improved security

Digital technologies can help businesses protect their data and systems. For example, cybersecurity solutions help protect businesses from cyber attacks.

According to a study by Cybersecurity Ventures, the global cybersecurity market is expected to reach $3.5 trillion by 2025.

Here are some ways digital technologies can improve security:

Cybersecurity solutions : Digital technologies offer a variety of cybersecurity solutions to help protect businesses against cyber attacks. These solutions may include firewalls, antivirus software, and identity and access management systems.
Cloud computing : Cloud computing can increase security by storing businesses’ data and systems in a central location.
Artificial intelligence : Artificial intelligence can be used to help businesses detect and prevent cyber attacks.

10. Better sustainability

Digital technologies can help businesses reduce resource use and reduce their environmental impact. For example, cloud computing can reduce the amount of energy used in businesses’ data centers.

According to a study by Accenture, digital technologies are expected to reduce global water consumption by 15% by 2025.

Here are some ways digital technologies can improve sustainability:

Improving the efficiency of data centers: Cloud computing can reduce the amount of energy used in businesses’ data centers.
Reducing energy consumption: Digital technologies offer various solutions to reduce energy consumption of businesses. These solutions may include smart home devices and energy efficiency software.
Reducing waste production: Digital technologies offer various solutions for businesses to reduce waste production. These solutions may include online shopping and recycling programs.

Conclusion

As a result, digital transformation can provide many benefits for businesses. To achieve these benefits, businesses must use digital technologies correctly and integrate these technologies into their business processes.

Technologies such as AR, AI and IOT are important parts of digital transformation. Businesses that use these technologies can increase their efficiency, productivity, competitiveness and customer experience. You can help us better understand the pros and cons by sharing your ideas in the comments section.

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