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How Digital Transformation Reshapes Business Operations?
In today's era, technology and digitalization play a crucial role in human daily life. People use technology to communicate, find information, work, and for entertainment. Almost everything relies on these things. Without the internet, we would find it difficult to function.
So, businesses need to adapt to the technology trends to stay current and survive. Understanding digital transformation helps businesses keep pace with the digital world and achieve success amidst high competition. At the very least, it prevents them from falling behind.
Let's take a look at what digital transformation is and why it's important!
What is Digital Transformation?
Digital Transformation is the application of digital technology to streamline work processes and marketing strategies. Its main goal is to increase efficiency, productivity, enhance customer experience, and modernize organizations, while also creating new business opportunities.
Examples of implementing digital transformation in business include transitioning from paper-based or hard copy document storage to online documents, using online meeting platforms like Zoom, Google Meet, or MS Teams for client meetings or team collaborations without the need for face-to-face interaction, or even shifting from cash transactions to digital payments, QR code scanning, and credit card payments. These digital transformation cases became particularly evident during the COVID-19 pandemic when people were confined to their homes, relying more on digital technology for daily living. Even as the pandemic subsided, our society didn't revert entirely to its pre-pandemic state. Instead, new technologies continue to develop constantly, making it almost imperative for businesses surviving in this era to adopt them.
Why is Digital Transformation important?
In addition to enhancing efficiency, digital transformation also helps reduce organizational costs. For instance, previously, we might have needed to hire many administrators to respond to a large volume of chats to meet customer demands. But now, with chatbots, common questions can be answered 24/7 without the need to hire as many people. Additionally, enabling employees to work from anywhere saves on electricity and office air conditioning costs. There's no need to spend on renovations to accommodate a larger workforce either.
Digital transformation makes our organization appear modern and provides convenience to customers of the new era. For example, facilitating online money transfers, creating websites for customers to shop from anywhere, implementing QR code ordering systems for food, and more. These technologies enhance the customer experience, encouraging repeat patronage and ultimately increasing customer loyalty. This, in turn, stimulates higher sales volumes.