Organizations that integrate modern technology with a holistic approach towards transformation have greater chances of achieving increased revenue growth rates.
With around 97% of businesses adopting the cloud, digital acceleration has become omnipresent and many have at least piloted the use of Artificial Intelligence (AI) applications/tools. However, not all enterprises transform at the same pace. An IBM study suggests that enterprises that have adopted smarter technologies benefit from a 7-percentage point revenue growth premium over their competitors. Thus, simply implementing standalone technologies is no longer sufficient to fully realize their potential and set a firm apart from its competitors.
When the Pandemic Propelled Digital Transformation
COVID-19 disrupted industries like never before and exposed vulnerabilities that technology leaders had probably not experienced. However, many businesses rose to the occasion by incorporating digital strategies and solutions into their processes. As brick-and-mortar retailers closed and buyers buzzed online, cloud computing assisted them handle the increased traffic. Deloitte reports that organizations like Bank of America and Comcast used digital assistants to address customer queries while call centers were inundated.
COVID-19 was simply the most recent in a long line of instances that demonstrated how much uncertainty the companies and business landscape face. With the changing market dynamics, leaders can improve their company’s ability to navigate change successfully, protect against mounting cyber threats, and stay ahead in the competition.
Going Digital to Sustain Amid Uncertainties
Organizations will need to innovate quickly, keep up with technology and industry change, and create greater resilience to survive and thrive. Some of the main reasons business executives invest in digital transformation, particularly in the private sector, are:
- Innovation: Digital ways of working support experimentation and rapid iteration, thus allowing for more innovation possibilities. A study by Deloitte confirmed that more than 80% of higher-maturity companies indicated innovation as a strength, as against only 10% of lower-maturity enterprises.
- Modernization: Another primary driver of digital transformation investment is a desire to modernize and keep up with the competition. This is a strategic goal since it can help businesses compete more effectively and efficiently. Legacy IT systems can be rigid and expensive to operate and can stifle creativity, whereas modern going digital reduces operations costs can free up resources for new projects.
- Varying Industry Dynamics: Digital technologies propel change across industries, pushing organizations to digitize in various ways. For instance, digital technologies support an enormous shift toward decarbonization in the energy and resources domain. And executives in the oil & gas and construction industries cited digital technologies as their highest priority in meeting fossil fuel reduction targets for the decade. For consumer-oriented sectors, digital transformation enables businesses to capitalize on new direct-to-consumer (DTC) avenues, boosting growth opportunities and strengthening customer relationships.
Going digital will help enterprises navigate change and uncertainty as the world grows increasingly tumultuous. Data expertise, analytics, and Artificial Intelligence can help discover irregularities and opportunities.
Organizations can leverage cloud platforms, cloud-native development processes, and low-code/no-code application platforms to build software solutions faster than conventional development modes. Chatbots can handle rising customer inquiries. A watchful cybersecurity strategy backed by the automated response and threat identification can help firms safeguard themselves from threats.
Digital acceleration begins with a well-thought and designed plan. Identify minor alterations with instant effects, for starters, such as a new communication tool or a chatbot. Then proceed to the next step in your digital acceleration journey and begin the process all over again.