Digital transformation: What it is and its benefits

digital-transformation-what-is-it-and-benefits

Digital transformation: What it is and its benefits

Digital transformation is a phenomenon that, for some decades now, has been making its way into society, permeating its different strata and having a direct impact on the productive and business fabric, worldwide. 

This phenomenon has been assumed by most companies as an opportunity, to both reorient their objectives, for the sake of the incipient technological ecosystem, and to be more resilient in the face of future crisis. 

However, there are still some organizations in which resistance to change and the costs associated with digitization are the main barriers when embarking on digital transformation

The coronavirus crisis has highlighted the importance of digitization for all companies. Proof of this can be found in a recent report published by BBVA Research, which takes as a reference the DiGiX, a multidimensional index that measures the degree of digitization in global terms. As highlighted in this report, only the countries that have had a high level of digitization have managed to maintain their productive activity during the pandemic, safeguarding the health of their employees, thanks to remote work. In addition, electronic commerce, eLearning and social relations have been possible thanks to ICT (Information and Communication Technologies), tools intrinsically linked to any digital transformation process. 

Thus, the race to digitize companies is inescapable. Do you want to know all the benefits that digital transformation can bring to your organization? Read on and be part of the Industry 4.0 approach, that many companies have already begun. 

Thinking about embarking on your digital transformation process? Our specialized team will help you create a customized solution tailored to the needs of your business. Click here to request a free demo. 

Digital transformation in society vs. digital transformation in enterprises

Although digital transformation is linked to the application of new technologies, it is worth clarifying the differences that exist between its application framework at the business and social levels.

On the one hand, when we talk about digital transformation in society, we refer to society as a whole, i.e., people, organizations, institutions and companies adapting to the technological environment or digital ecosystem. 

On the other hand, the concept of digital transformation applied to the business environment consists of the integration of new technologies in all business processes and strategies. In other words, it consists of the implementation of a series of processes, methodologies and technological tools aimed at optimizing the operational activities of the organization. 

Benefits of digital transformation in companies 

If the current business ecosystem is characterized by something, it is its high levels of volatility, uncertainty, complexity and ambiguity, qualities that come together to give rise to the VUCA concept. 

Faced with a scenario of such characteristics, the processes, tools and methodologies involved in any digital transformation process, such as digitization, process automation and Artificial Intelligence (AI), will help companies to overcome this uncertain context. The benefits of digital transformation include: 

1. Increase productive capacity 

Organizations that adequately carry out the digital transformation process will achieve an increase in profitability and the productive capacity of their workers. All this, thanks to the provision of new equipment, tools and applications such as intelligent process automation

2. Improve Customer Experience (CX) 

The emergence of new information and communication technologies has led to the emergence of new communication channels between companies and their clients, such as web pages, social networks, email … All of them must be integrated into an omnichannel communication strategy that empowers companies to offer a better customer experience (CX) and save costs. 

3. Eliminate paper usage 

Digital transformation of a company includes the digitization of all the processes related to document management. Among the benefits of eliminating the use of paper are cost savings related to its acquisition and storage, improvements in access and security of documents and a reduction in response times for communication processes between the different stakeholders. 

4. Increase collaborative intelligence 

This term refers to the ability to work together to make better decisions. Smart collaboration leverages different communication platforms between employees to streamline problem-solving processes and workflows. 

5. Boost employee retention 

Companies that are committed to digital transformation manage to retain internal talent, since they invest in training and updating staff knowledge. Additionally, a better employee experience will bring improvements in interdepartmental communication and quality of work. 

6. Accelerate decision-making 

Digital transformation streamlines the decision-making processes and drives knowledge within organizations, as it results in significant improvements in data monitoring, collection and analysis. The goal is to achieve much more resilient companies, i.e., businesses capable of perceiving, anticipating and responding to changes, at the same pace as the market. 

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Sara Gundín
sara.gundin@auraquantic.com