Why digital technology is important for businesses?

Digital transformation is the integration of digital technology into all areas of your business, fundamentally changing how you operate and deliver value to customers.

It’s also a cultural change that requires organizations to continually challenge the status quo, experiment using new technologies, and get comfortable with failure.

Digital transformation brings together people, data, and processes to create value for customers and employees and more effectively compete in an ever-changing digital economy.

Digital Transformation is crucial for the growth of your company.

Digital Transformation is essential for the growth of your company. Why is that?

  • It gives you a competitive edge over other companies that are trailing behind in modern technology.
  • It helps you save money because it helps improve efficiency and increase productivity. Analytics can help to spot opportunities for optimization and automation, leading to reduced costs across the board.
  • It creates more value for your customers, helping them get better services from enhanced data processing power and reduced downtime from IT issues. Your customer-facing teams will also be able to use data to personalize the experience for your customers, making them more likely to stay loyal and recommend you to others.

The most important of all is Customer experience.

A digital transformation strategy is not an option but a must for any business to be successful in the long run. The most important of all is customer experience.

Customer experience has now become the key differentiator. It means the customer’s perceptions and feelings about your business when interacting with your brand, products, or services.

Today’s customers expect more from businesses; more personalised services, more convenience, more value for money; thereby building better relationships and loyalty to their brands. This demands businesses to transform themselves digitally in order to deliver customer experiences that meet or even beat those of their competitors.

The customer journey begins way before they are even customers of yours and goes on after they cease being your customers. This customer journey is what customer experience is all about.

Keeping up with digital transformation is absolutely necessary if a business wants to stay competitive in today’s market.

Digital transformation is the process of adopting digital technology to transform services or businesses, through replacing non-digital or manual processes with digital processes or replacing older digital technology with newer digital technology. This will help you get an idea about why digital transformation is important for businesses and what all it includes.

There are many benefits, like improved customer experience and business agility to name a few, when we go for any new technological solution in our business.

However, there are some challenges that need to be addressed while implementing the new solution.

  1. Technology Dependency:

Digital transformation is not just about implementing a new IT solution. It is more than that.

Any business must have a clear understanding of the technology requirements of its employees before they implement a new solution. It is important for any company to know if they have the right infrastructure and resources to support the technology requirements of its employees.

Digital technology can be a blessing, but it can also be a curse. Organizations have to understand that their business depends on technology, which means that even a small mistake can cost them a lot of money and reputation in the market.

  1. Productivity Loss and Training Issues:

Implementing digital solutions in an organization may cause productivity loss because all employees will have to go through training for using the new system or software application. Also, it may take some time for them to become comfortable with the system and perform tasks efficiently. This can be problematic for businesses as productivity loss can affect their revenue generation activities directly.

  1. Security Threats:

Digital transformation involves implementation of newer IT solutions, which means that there could be security threats too. Hackers are smarter these days, and they can hack into your network anytime if you don’t have an updated antivirus installed on your computer systems or strong passwords

Many companies miss out security risks when implementing a new solution because of lack of awareness and experience in this field. So, it is wise to have an experienced team when implementing any new solutions in your organization.

  1. Compatibility Issues:

You need to ensure that the new application that you are planning to implement is compatible with your current infrastructure and legacy systems.

You cannot always afford to change your existing infrastructure and legacy systems, especially if they are working fine. Hence, you will have to select solutions that can seamlessly integrate with your existing system without causing any issue or disruption in crucial work processes.

The new solutions should also be aligned with your project goals so that its implementation does not cause any disruption in achieving your project goals.

  1. Inability to Retain Legacy Systems

One of the major issues faced by organizations during digitalization is the inability to retain their existing systems. Organizations merely switch over to new technologies instead of integrating them with their existing systems because they think it’s easier and more cost-effective. However, this leads to issues like compatibility.

  1. Data migration issues

Data migration issues are often cited by executives as being the main hurdle for implementing any new solution. You need to be able to migrate your data from your current system to your new one with limited downtime and minimal disruption.

This can be quite a challenge depending on how much information you’ve got on your current system

  1. Lack of business case for change

Many organizations don’t have a clear business case for making changes in their organization. In order for them to justify such changes, they need to show how it’s going to benefit their organization in the long run.

Digital transformation is a fundamental change in how an organization uses technology, people and processes to deliver more value to customers, partners and employees.

Here are some benefits of Digital Transformation:

Improves Customer Experience

Businesses can leverage digital technologies like Big Data and Artificial Intelligence to deliver improved customer experience. They can use the gathered data to predict customer behavior and purchasing patterns. These predictions help businesses to improve their customer service and sales.

Increased Customer Engagement

Digital tools like social media platforms provide a great platform for businesses where they can engage with customers directly. Businesses can also add chatbots on their websites that allow customers to contact them in real-time. This helps in building stronger relationships with customers and increases their loyalty towards your brand.

Enhanced Employee Productivity

By enabling employees with the latest digital tools like cloud-based applications and smartphones, businesses can improve employee productivity significantly. Also, new collaboration tools enable employees from different departments to communicate easily.

Customer Experience

Digital technologies can be used to engage with your customers and provide them with a personalized experience using their own data. Digital Transformation helps you to understand the customers better and attract them to your business.

Automation and Optimization

Digital transformation allows businesses to automate repetitive tasks and optimize the process so that they can function more efficiently without any errors. It also helps businesses save time, effort and money.

Better Communication

Digital transformation makes communication between employees and departments easier within the organization as well as outside of it. This can improve productivity as well as employee engagement.

Today, most companies are digital to some extent, but there’s a spectrum that ranges from those that are basically paper-based to those that are completely digital and moving at the speed of the Internet.

But one thing that’s certain is that if you’re not digital now, you will be in the near future. Why? Because your competitors will be.

The race toward a digital future is well underway, and it’s time for you to start running.

 

To understand more about the advantages of Digital technology for your business, contact one of our friendly team for a chat!

How ERP can help with Digital Transformation

The digital transformation concept has been around for a few years now and it’s gone from being a buzzword to a business reality. Digital transformation is not just about the adoption of technology; it’s about changing the way we work, the way our businesses operate and perform, and the way we interact with customers and partners.

Digital transformation is also not a one-time, one-size-fits-all process. Businesses are finding many different ways to apply digital technologies to create value, grow and adapt to market changes. Most importantly, they’re finding ways to leverage these technologies to achieve differentiation in their markets, increase agility and drive innovation.

ERP is central to digital transformation, and a well-implemented ERP can make the transformation process itself faster and smoother. The best ERP systems provide a solid foundation for enterprise visibility, internal operations efficiency and external customer engagement that support digital transformation in multiple dimensions.

What exactly is ‘digital transformation’?

Digital transformation refers to the changes associated with the application of digital technology in all aspects of human society. The ultimate goal is to allow organizations to adapt to new technologies, processes, and mindsets. Digital transformation is not just about IT replacing an old system with a new one, it is also about upgrading systems and processes, as well as people’s skills.

This model typically involves replacing existing processes with their digital equivalents, integrating online tools into all aspects of operations and creating an entirely new virtual customer experience. Customer relationships are important in this sense because digitization makes it possible to interact with customers in real time and offer them personalized services.

So how exactly can they use and shape the digital transformation concept to achieve the best advantage for their enterprise?

The answer lies in ERP (Enterprise Resource Planning) software. ERP is central to digital transformation, and a well-implemented ERP can make the transformation process itself faster and smoother.

What is ERP?

ERP (Enterprise Resource Planning) is a business management software that allows organizations to use a system of integrated applications to manage their businesses’ operations, including purchasing, accounting, manufacturing, sales and customer relationship management (CRM).

ERP systems allow all departments within an organization to collect, store and manage information in one single system. This prevents various versions of data being used across different departments. The system functions as a single repository for all types of data collected.

The benefits of ERP in digital transformation

ERP is central to digital transformation, and a well-implemented ERP can make the transformation process itself faster and smoother. This is because ERP solutions automate all back-end processes, from managing financials to controlling inventory and HR to analysing data. ERP software also integrates all company functions into one system, which means that information passes through each department without human intervention. In addition, ERP software offers features like analytics, which help companies identify areas for improvement.

ERP vendors like SAP offer pre-built templates for certain industries so businesses can get up and running.

ERP is an essential tool for digital transformation because it will replace paper processes with automated digital alternatives. The more paper processes you have, the longer your digital transformation will take, because all of them will need to be analysed, planned, and replaced with a technological solution.

In addition, ERP has the potential to create a standard platform across your organization that all employees can use in much the same way. This creates consistency across your business functions, which makes it easier to implement technology solutions once manual processes have been removed.

7 reasons why ERP is central to digital transformation:

1. Automation

Many time-consuming tasks that used to be manual are now automated with the help of technology. You can automatically collect data from social media sites or your website or automate payment processes or invoicing. If you want to make sure all these automated processes keep running smoothly, you need an ERP system that integrates data across applications and departments.

All of those manual processes that you’re looking to replace. They’ll be automated by your ERP system. Automation not only eliminates errors and delays; it also frees up your employees to focus on

Automation is key to digital transformation. Automating manual processes allows you to focus on more strategic tasks and creates additional capacity without having to add headcount.

2. Productivity

Having all your information integrated in one place means you don’t have to waste time searching for relevant data across different departments or even different systems. Instead, you have everything you need at your fingertips, so that you can make better decisions faster.

Digital transformation drives productivity gains by improving internal processes, systems and operations across the business. These gains are enhanced via effective automation and integration of key applications like CRM and ERP solutions.

An ERP solution provides real-time data about all aspects of operations, enabling managers to make better decisions based on actual performance rather than guesswork or intuition. Faster decisions lead to faster actions, improving productivity across the enterprise.

3. Efficiency

Digital transformation enables you to improve efficiency by streamlining internal processes, removing bottlenecks and better aligning your technology with the way you operate.

ERP enables companies to streamline processes by identifying bottlenecks and inefficiencies. For example, an ERP tool might show that production is lagging because orders are coming in too fast for the assembly line to keep up with. Efficiency gains can have a positive impact on profitability

By automating processes and streamlining workflows, companies experience higher efficiency levels across their operations.

4. Engagement

An ERP system makes it easy for employees to collaborate with one another on projects and tasks, which increases engagement and decreases turnover rates among staff members who feel more connected to the organization as a whole.

5. Cost

Digital transformation is a huge investment, and businesses will want to see a return on their investment as quickly as possible. ERP systems save time and money. They can do this through automation of specific tasks, such as automatically generating reports or sending out purchase order notifications. ERP also reduces costs by standardizing processes and procedures. This makes it easy to implement cost-saving measures, such as using the cheapest supplier for a particular commodity. It also makes it easier to track costs, so you can see where savings could be made

ERP consolidation can reduce costs.  It’s also possible that your ERP system vendor is offering a cloud-based deployment model, which should reduce IT costs. But it’s important to consider the entire picture; there may be some aspects of your typical IT spend that will increase because of digital transformation. For example, if you are deploying new applications or services, you may need to hire or train new personnel to support them.

6. Standardization

The more standardized your processes are, the easier it will be to implement new technologies as part of your digital transformation efforts. This is where an ERP can play a big role — you’re already using it as a standard set of practices across your business. But there are other areas where standardization can help when pursuing digital transformation

The uniformity that ERP provides is one of its major advantages in digital transformation. A standardized system means that staff do not need to learn multiple different processes for the same task – they only have to learn one way of doing things, and then they can apply that anywhere in the business. This saves time and money because training costs are reduced across the organization.

In addition, it improves efficiency because employees are not constrained by their own lack of knowledge about how to perform a task in a particular department or location. The same information can be accessed from any authorized location at any time.

7. Scalability

A good ERP software is built to scale with your business as it grows, so you can rely on its capabilities no matter how big or small your enterprise is.

Cloud-based deployment models also make it easier to scale up and down as needed, depending on changing business needs. This makes the choice of deployment model a critical decision since it can affect scalability down the road.

The overarching goal of digital transformation is to create a company strategy that is as efficient and well-organized as possible to meet the needs of the market and consumers.

ERP is central to digital transformation, and a well-implemented ERP can make the transformation process itself faster and smoother. The best ERP systems provide a solid foundation for enterprise visibility, internal operations efficiency and external customer engagement that support digital transformation in multiple dimensions.

Implementing an ERP system is the first step in harnessing the power of digital transformation for your enterprise

For enterprises seeking increased efficiency and productivity, SAP Business One is the right fit. This enterprise resource planning system streamlines business processes, empowers users to take charge of their work, and drives your bottom line.

SAP Business One provides a rapid return on investment for companies looking to adopt digital transformation practices.

Download the free SAP Business One solution brief today to start your digital transformation journey.