“A man is only as good as his tools.” - Emmert Wolf
Every business organisation either uses the tools available in the market or develops their own tools to meet their objectives. Creating effective systems are vital to making proper use of the available resources and maximising the efficiency in a business, helping it gain an edge against competitors. However, technology improves every single day, keeping up with the best that science has to offer ensures that you stay ahead in an unending race. In fact, surveys have shown that nearly one out of three senior executives believe that Digital Transformation is needed for survival, and around 70% of the organisations surveyed are currently pursuing it. Given below are some of the primary reasons that companies all around the world are trying to improve their digital technologies.
- Customer demands
Studies have shown that keeping up with the demands of the modern customer is what drives most businesses towards digitally transforming their organisation. Customer demands are seen as key drivers of digital transformation mostly among large business employing more than 250 employees. A recent survey shows that more than 85% of such companies claim that they are digitally transforming their processes to adhere to customers' demands.
- Cost efficiencies
Increasing the cost efficiency of productive systems is observed to be the second most popular driver for digital transformation. More than 60% of the companies surveyed claimed to have cost efficiency at the highest priority, as this allowed them to focus precious resources on other objectives.
- Customer retention
More than 50% of the businesses surveyed claimed that they were pursuing digital transformation with the hopes of retaining their present customers. This was observed to be the most influential driver amongst distribution businesses, as more than 90% believed that digital transformation would help them retain the loyalty of their customers.
- Competitive pressures
Not surprisingly, a considerable chunk of businesses, about 45%, pursue digital transformation just so that they can continue competing on even ground. This trend was most visible amongst medium sized businesses that had between 50 and 249 employees as more than 70% of such businesses confessed that they are merely trying to keep up with their competitors.
Regardless of the reasons for the transformation, most businesses are realising that digitisation is necessary to stay relevant in the present market. If you plan to have your organisation pursue digital transformation, ensure that you build a unique strategy that makes it possible to achieve company objectives.
Based on research conducted by Fifth Quadrant. For more details download: Embracing Digital Technology To Deliver Better Business Outcomes Report