Benefits of Businesses embracing Digitalisation

Going digital is more than just setting up a website. Fully embracing the digital age is key to success for many businesses, and there are plenty of benefits to doing so.

Digital transformation – the process of changing how a company operates in order to utilise new technology – is a major challenge for many businesses. Organisations may have been operating a certain way for years or even decades and altering that is not an easy task.

 

However, just because it is difficult doesn’t mean it shouldn’t be done. Taking a look at the slots industry, the Wink Slots site shows how a business that would have been completely offline years ago can benefit from going digital in a big way.

 

Slot machines were always a quick way of making a bet, but unless you were planning on spending a day in a casino, they were a casual pastime. However, by going online, slots have been transformed into an easily accessible online game.

 

This is one reason why digital transformation has become such a big business in its own right. Global spending on the process hit $1 trillion in 2018 and is expected to reach $3.4 trillion by 2026.

 

This is true of a wide range of businesses, with companies finding new niches they would have never thought to occupy before going digital. Here are a few of the benefits businesses can reap by embracing digitalisation.

Cut costs and save money

This is the headline benefit of digitalisation: it might cost money to implement, but that initial spend will be dwarfed by the amount you will save in the long run. By going digital, companies can reduce or even eliminate the money they spend doing everyday business.

 

This saving can be enormous, with the McKinsey Digtial site claiming digital transformation can cut companies’ costs by as much as 90 percent. An example given is that of a bank that digitised its mortgage application process, cutting the cost of each new mortgage by 70 percent overnight.

 

These savings can come from all sorts of places. For example, any decisions that are simply a matter of checking if something meets a set of criteria could be done by an algorithm, which would free up staff to add value to your business in other ways.

 

Early adopters of the digital world understood this fully. E-commerce businesses, for example, realised early on that running a retail business would be much more efficient if done digitally.

 

Shops no longer needed to have buildings dedicated to displaying goods; everything could be put in a space-saving warehouse, cutting rent costs enormously. Applying this same logic to your company could lead to major cost savings.

 

Enhance the customer experience

Almost all businesses sell a product or service to end users, and if the process of making a purchase is simple, understandable and positive you will be much more likely to see those customers return. One way to achieve all of this is through digitalisation.

 

You’ve probably seen this plenty of times in your life. From being able to quickly order food through an app to accessing your bank statements online whenever you want, the internet has made the consumer experience much easier.

 

This is why creating an exceptional and highly relevant customer experience is the top priority for most organisations according to the Harvard Business Review site when it comes to digital transformation. It’s one of the main strengths of digitalisation and can be implemented relatively easily.

 

For example, setting up a chatbot is simple – there are a range of pre-built options available – but it can vastly streamline the customer experience. Common queries, such as what your opening times are, can be answered in milliseconds by a bot rather than a customer having to wait for a response from a human.

Make decisions with data

What percentage of your customer base is aged between 35 and 40? That might be a hard question to answer if your company is mainly offline, but digital businesses can find that information at the press of a button.

 

Digital businesses have access to reams of data, collected every time a customer interacts with their website or app. This isn’t just important for learning trivia tidbits; it can guide your company’s decision-making in a big way.

 

For example, good data collection can show you which products are abandoned most often by customers, or which are being viewed on your site but not added to anyone’s baskets. This can help you understand which items are priced fairly, or spot issues with your e-commerce process.

 

These are not small decisions; they can lead to your profits increasing and your customer experience improving. Understanding your business is the first step towards making it more efficient and effective, and data is best way to do this.

These are far from the only benefits from digitalisation, but it should be clear by now that digital transformation is a great way to improve a business in a variety of ways, including advocating gender balances in the media. Embracing this process could be the key to your company reaching the next level.

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