Digital transformation is a combination of digital technology in all areas of business. This brings about fundamental changes in the way the business operates. Organizations across industries are enjoying the benefits of digital transformation: it enables businesses to innovate previous generation processes, accelerate efficient workflows, strengthen security and increase profitability.
90% of companies do business in the cloud. When companies transfer data to the cloud, much of what is done is to replicate existing services in digital format. But a true digital transformation is much more than that: a digital transformation can actually be transformative across the organization – creating a technological framework that will deliver these services and data into practical insights that can enhance almost every aspect of the organization.
Instead of simply transferring data to the cloud, leverage your digital transformation to re-evaluate and optimize your systems and processes, ensuring they are reciprocal and flexible enough to provide solid business intelligence and set your company up for future success.
Why is digital transformation important?
Digital transformation is changing the way an organization works. Systems, processes, workflow and culture are all part of this process. This transformation affects every level in the organization and brings together data between domains to work together more effectively.
By utilizing workflow automation and advanced processing, such as artificial intelligence (AI) and machine learning (ML), companies can connect the points in the customer journey in a way that was not possible before.
8 Benefits of Digital Transformation
For many companies, the motivation for digital transformation has to do with cost. Transferring data to a public, private or hybrid cloud environment lowers operating costs. This frees up hardware and software costs while freeing team members to work on other projects.
Improved data collection
Most businesses collect mountains of customer data, but the real benefit is optimizing that data for analysis that can propel the business forward. Digital Transformation creates a system for collecting the right data and fully integrating it for a higher level of business intelligence.
This creates a way in which different functional units in the organization can translate raw data into insights across different contact points. By doing so, it produces a single look at the customer journey, operations, production, finances and business opportunities.
It is essential to evaluate how this customer data is collected, stored, analyzed and shared as part of this process. When you rethink your technology stack, you want to ensure that sensitive data flowing into and out of your customer relationship management (CRM) software and other platforms is protected by a layer of SaaS data encryption.
When evaluating your customer journey as part of your digital transformation, consider how you can give your customers more autonomy over their data – using data privacy as a business differentiator. Consumers are becoming increasingly aware and concerned about how their data is collected and used. Show them that you respect their data by engaging in strong privacy practices and giving them the opportunity to change their minds at any time.
2. Stronger resource management
Digital Transformation consolidates information and resources into a suite of business tools. Instead of distributed software and databases, it consolidates company resources and reduces vendor overlap. God The average number of applications used in enterprise businesses in 2020 is 900. Digital transformation can integrate applications, databases and software into a central repository for business intelligence.
A digital transformation is not a class or a functional unit. It encompasses every area of the business and can lead to process innovation and efficiency between units. From sales and marketing to finance and C Suite, each department leverages sensitive data. It is important to optimize and secure data wherever it flows, while equipping teams with easy-to-use tools to get the job done.
3. Data-based customer insights
Data can be the key to opening customer insights. By better understanding your customer and his needs, you can create a business strategy that is even more customer-focused. Using structured data (personal customer information) as well as unstructured data, such as social media metrics, these insights can help drive business growth.
Data enables strategies to deliver more relevant, customized and agile content.
4. Better customer experience
Consider how your digital transformation can not only open up efficiencies for your teams, but also deliver smoother and more intuitive experiences to your customers. This extends from email communication to user portals, digital products, and even the pace at which you turn to new leads.
Customers have high expectations for digital experiences. Consumers are used to getting endless options, low prices and fast delivery. Customer Experience (CX) is the new battlefield for brands. Gartner reports this More than two-thirds of companies claim to compete primarily for a customer experience.
Accenture reports that CX “has emerged as the key driver of sustainable business growth.” They suggest that even A single point increase in CX scores can lead to annual growth of millions of dollars.
One way to differentiate your brand with customers is to prove that you value their privacy. Give the customer control over how his data is collected and used, and empower him to make decisions around his data.
5. Encourages digital culture (with enhanced collaboration)
By providing the right tools for team members, tailored to their environment, Digital transformation encourages digital culture.
While these tools provide a smoother way to collaborate, they also help propel the entire organization forward digitally. This digital culture change is essential for businesses to remain sustainable. This forces the raising of digital skills and learning of team members to take advantage of the digital transformation.
6. Increasing profits
Companies undergoing digital transformation improve efficiency and profitability. Consider these results reported by SAP Center for Business Insights and Oxford Economics:
- 80% of organizations that have completed a digital transformation report an increase in profits.
- 85% say they have increased their market share.
- On average, leaders expect 23% higher revenue growth compared to competitors.
7. Increased agility
The digital transformation makes organizations more agile. Borrowing from the world of software development, businesses can increase theirs Agility with digital transformation Improve market speed and adopt continuous improvement (CI) strategies. This allows for innovation and faster adjustment while providing a path for improvement.
8. Improved productivity
Proper technological tools that work together can streamline workflow and improve productivity. By automating multiple manual tasks and integrating data across the organization, it enables team members to work more efficiently.
How Virtru Empowers Digital Transformation
Digital transformation redefines the way companies operate. From better data collection to an enhanced customer experience, businesses are seeing both cost savings and increased profitability. The digital transformation movement will continue to accelerate. By 2023, IDC expects this 53% of all investments in information and communication technology will be in digital transformation.
One of the biggest challenges in digital transformation is the integration of different systems into a unified workflow. Data management and security protocols must be synchronized and yet, information security is a major challenge for organizations.
Data protection is no longer just an IT task, but a strategic business initiative, mainly due to stringent regulations and severe consequences in the event of data loss. As part of your digital transformation, it is important to develop a framework for maintaining sensitive data. With Virtru, you can enjoy the benefits of digital transformation with the confidence that your data is protected wherever it moves in these new systems.
- Immediately take over your data and improve your existing security.
- Easily secure your data as it is created.
- Collaborate with confidence while maintaining complete visibility and control.
Virtru provides a data protection layer that integrates directly with the applications you use today, such as Google Workspace, Microsoft 365, Salesforce and Zendesk, allowing users to continue working in familiar ways but with additional security from Virtru.
For more information on what to look for in a data protection solution when you begin your digital transformation, download our Security Manual for Hybrid Workforce.