Five Reasons For Digital Transformation

There's been a lot of hype about Digital Transformation in 2017, and it is expected to continue in 2018 as more businesses jump on the digital transformation wagon. Digital transformation is swiftly rising from buzzword status to a must-have strategy for all businesses, as it repositions technology from being a supporting element to business, to being the main driver for business itself.

Read on to understand the top five reasons why you should initiate digital transformation in 2018:

1) Meet customer expectations

Customer-facing digital transformation can have a positive impact on both revenue and profit for your business, widening the reach of your business and richness of the information that you can share in terms of volume, customisation, and interactivity. As per a study conducted by Bain & Company, the trade-off between scale and intimacy to the customer is no longer viable. Giants such as Starbucks are investing in superior mobile experiences, personalisation and value-based on loyalty insights to bring them closer to their customer. A quick scan of the market shows that technology-oriented companies are steadily eating market share away from incumbents across all industries.

2) It's a great marketing tool

Customers are now exposed to a wider range of innovative businesses and disruptive technology start-ups. They now expect businesses to invest and advertise in innovation to bring them more convenient examples and digital transformation is a great platform to highlight this.

3) No more resource constraints

Digital transformation allows businesses to transform into cloud-based enterprises, which rids them of the hassles of worrying about resource constraints and reduces their capital expenditure in technology. Across the value chain of computing, business is choosing to adopt a pay-as-you-go model rather than an upfront cost model. The days of maintaining a server room in the company headquarters or buying hardware like computers or cellphones are long gone, even telcos such as du in the UAE are providing a range of office devices on a monthly lease basis, which eliminate the threat of over or underutilisation and creating a fluid manner of billing that moves only per the changeable nature of the business needs.

4) The value of data

For many industries, the struggle of understanding the value of data acquired about their customers or internal processes is now becoming much easier to resolve. The reasons for this are simple. Firstly, data is becoming a profit centre rather than a cost centre. It is now much easier for businesses to reduce the guess work by building the right data capture tools in their processes and channels.

5) Lower costs and instant upgradability

Digital transformation allows businesses to reduce their operational costs over the long term and improve their profitability. By migrating to the cloud, business can reduce their total cost of ownership (TCO) by more than 70 per cent vis--vis hosting their applications on premises. Adding to that, businesses can divert funds allocated for technology CAPEX to more critical needs. One of the crucial and arguably the paramount benefits of cloud is the ability to cope with changes on demand instantaneously through Elastic Computing, whereby resources can be scaled up or down to meet computing needs. When you combine that with new technologies such as chatbots, the capacity of your e-commerce website (if you are a retailer) becomes unlimited. If you operate in customer service, chatbots can enable your business to have a virtually unlimited number of service staff during peak times without having to hire additional manpower.

Conclusively, digital transformation is constantly evolving and can affect businesses differently depending on the industry they operate in and their maturity. It is important to avoid pitfalls of investing in new technology trends for the sake of them being novelty. At YVOLV, we support businesses through a consultative approach that is vendor-agnostic and with the perennial goal of helping business improve revenue and their bottom line.

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