DIGITAL TRANSFORMATION IS UNDERWAY
SO WHAT BENEFITS CAN YOU EXPECT?
Digital Transformation is all the rage these days and enterprises are rushing to jump onto the bandwagon. And the most common question we hear in our conversations with our clients is “What kind of benefits can we expect from a digital transformation?”. In this “ideas@work” series we will attempt to answer them.
To be sure, while the answer is specific to the particular program or project, there are some broad overtures that one can expect to see in a digital transformation. They fall into the following categories.
Improved customer experience
Digital transformation mandates the introduction of modern digital touchpoints that are comparable to the consumer grade touchpoints and experience that customers and employees are familiar with. By focusing on creating rich UI/UX powered by data and personalized experiences, digital transformation brings in a massive upgrade to customer experience.
Another mandate of digital transformation involves using data to make decisions. Data is all pervasive and constantly analyzed to provide insights. Thus digital transformation brings in a level of insight that has hitherto never existed in the enterprise through data.
New products and services
Digitization gives us access to digital marketplaces as well as digital products and services. This allows a business to innovate and create new products or repurpose existing products to address the new market requirements. As existing markets become red oceans of competition, the need for new markets and new business models becomes imperative for businesses to operate and survive.
An accurate understanding of customer personas
With good data insights comes good classification and modeling. Incorporating data-driven insights with advanced machine learning algorithms that provide an automated classification of customer preferences – essentially creating personas of customers in their demographic profiles (like their browsing and buying profiles, their service interactions etc.). Every customer touchpoint when made digital lends itself as a platform for data collection analysis and providing insights into the customer persona.
Using data-based insights in decision-making helps refine processes resulting in the elimination of waste and better optimization. This indirectly leads to a reduction in costs for any business process.
The pointers provided here are at a broad level that applies to any digitization initiative. Every digitization project should be vetted against the benefit axes to benchmark value created through digitization.