With supply chains and businesses taking a different shape after the two waves of the Covid-19 pandemic, digital transformation is the only way to go. Without digital transformation, it is almost impossible to change potential customers to closures in sales. In fact, it is only through a digital transformation that businesses will win their customers and realize revenue. In essence, digitally transforming a business is like giving it the right lungs, kidneys, and spinal cord. Without it, organizations will not stand out to pressure and remain sustainable. Rather, they will lose out on the competition. Why is that the case? Could this be an exaggeration? Keep reading to get answers to these questions and understand why digital transformation is this essential.
- The traditional systems were inefficient
One that’s a fact is that the traditional systems and modes of operation were quite inefficient. For instance, the financial industry faced a lot of inefficiencies and inaccuracies owing to the loopholes in their traditional systems. The customer and consumer relationships were all strained because the industry could not understand them any better. Besides, it was difficult to predict customer behavior and respond to their benefits. The slow-working machines compromised data quality, making it ‘historical’ by the time it was out of the analytical chamber. Accountants faced migraines when clients would flock the offices, banging doors because of the poor services. However, with the introduction of digital transformation, efficiency is now possible. The banks and financial institutions can now respond to customer issues in real-time, improving the customer relationship with the institutions.
- The face of businesses is fast-changing
If you took the time to compare the business trends we have today, and what we had two or three years ago, you will definitely realize that a lot has changed. Business is a dynamic field, and its various aspects are on the move every second. A good example of the business dynamic that has taken place and requires a digitally featured transformation is the need for contactless solutions following the Covid-19 pandemic. Before the disease set in, organizations would physically hold more than 50% of their meetings, always meeting in the boardrooms. However, things took a completely different turn since the virus broke in. with governments, international health bodies, and health agencies discouraging physical contacts, most of the organizations were compelled to digitally transform their operations. This means that online platforms like the Zoom app would be important for video conferencing and holding meetings. Today, more than ever, there are more payment gateways, all being featured because organizations are now digitally transforming their activities.
- There was a need to have end-users in mind
Before the current advent, where companies and organizations have the consumer at the center of their operations, the principal concern was the company and how it benefits. Little or no attention was paid to the end-users, and businesses worked to produce what would help them realize benefits. With what results? Organizations were losing out, especially when the products turned into deadstock and the consumers were not buying them. Since supply chains and companies started transforming their activities digitally, customer feedback happens in real-time. This helps the production teams to keep the end-user in mind and create what benefits consumers. With such changes, the industry has really changed, and the returns have increased a great deal.
- Companies need to have more predictive and prescriptive analytics
If you have never thought of digitally transforming your operations, perhaps you need to take a while and think about what the Covid-19 pandemic did to businesses. If there is a lesson supply chains and businesses learned, predictive and prescriptive analytics are at the center of a business and are quite imperative of the final turnout. Although it’s not possible to predict by 100% accuracy the extent to which the deadly infection is going to affect people, the high definition predictive analytics used by health agencies predicts, with relative accuracy, the effect of the pandemic. Besides, the systems are prescriptive. The results they provide help governments make informed decisions on regulations and the right restrictions. It is only by digitally transforming its operations can a company utilize such sophisticated analytics.
- There is an increased need for omnichannel and interwoven systems
Today, more than ever, the need for having omnichannel and interconnected systems is more severe. More uses are now not plat-form specific users, and they venture on a wide array of systems to satisfy their needs and get what they want. A good example is the numerous social media platforms we have today. Most youngsters who use social media will not focus on Facebook, Instagram, YouTube, Spotify, Tinder, or Snapchat in solitary. Instead, they cut across all these platforms, enjoying using three or more. This being the case, there is a dire need to interconnect systems that make it possible to integrate all these platforms. Of course, this is a complicated process that would only be possible if organizations shifted to digitally transforming their operations and featuring in these changes. Most companies have done these, and they are reaping the fruits of their investment.
- There is a need to have a better inventory management system
A business is only a business when it involves clients. With customers in the picture, inventory management is critical. While all businesses need an inventory management system, some need it more than others. For example, financial systems need a properly working inventory to track their transactions. Supply chains also need a fully functional, up-to-date inventory tracking system to monitor how orders are received and confirmed, attended to, and delivered and confirmed. Besides, shipping also needs to be supervised. Only a fully operational system can track shipments with accuracy to minimize cases delay and deadstock and uphold the company’s reputation. Would this ever be possible without the current systems that have digitally transformed processes? You know better
Digitally transforming a company’s operations is so crucial that it can be compared to planting fully functioning organs like kidneys, lungs, brains, and the spinal cord to a business. In essence, businesses that cannot transform their operations digitally lose out on completion, fail to stand up to business dynamics, flop on sustainability, and eventually phase-out. This article has discussed at length why companies need to digitally transform their operations.