So you’ve heard about digital transformation and you’re thinking about doing it at your place of business. But you’re not really convinced that it’s necessary.

I’m going to tell you why it’s essential that you do it.

But first, what exactly is digital transformation?

According to Velsoft Training Materials’ Digital Transformation course, the term means altering how a company operates, through the use of technology. However, it’s more than digitization, which is turning information into a digital format. Digital transformation is a fundamental shift in the way a business operates, taking full advantage of technology to meet customer needs and optimize operations.

Here are seven reasons why you need to undertake a digital transformation:

  1. More money

Companies that undergo digital transformation reduce their operational costs, can offer more competitive pricing, often decrease their marketing budget, and because of these things, increase profits. A study by the MIT Center for Digital Business found that digirati (firms that are more mature in both digital intensity and transformation management intensity) on average are 26 per cent more profitable than their industry competitors.

  1. Increased efficiency and productivity

Replacing manual processes with automation gives greater control, thereby increasing efficiency and productivity. Streamlined workflows also result in fewer errors and delays. According to Michiel Schipperus in an ITProPortal article, organizations that put e-commerce at the center of their approach gain immediate benefits. “Over 90 per cent of companies have seen an improvement in sales order process efficiency, three quarters have increased order processing, and 72 per cent have decreased order errors.”

  1. Better insights

Organizations that are digitally transformed have a greater ability to gather and analyze data that is used to make better decisions, becoming more responsive to market trends and understanding what customers want. The capacity to analyze this data can also identify inefficiencies, which leads to making improvements.

  1. Contented customers

Customers want their interactions with companies to be fast, easy and stress-free. Technology can help with this, improving customer service and bringing about increased satisfaction.

  1. Happier employees

Companies that are more progressive, i.e. embrace technology, tend to have employees who thrive in this environment and are more engaged and satisfied. As well, these organizations attract and retain high-achievers, making them stronger overall.

  1. Competitive advantages

Companies offering innovative products and services, with the ability to develop them quickly, find it easier to compete in the marketplace. Plus, since their competitors are also transforming digitally, it’s essential.

  1. Evolve or die

Undergoing digital transformation is necessary for survival, in order to avoid losing customers to competitors that have already made the switch. In the ITProPortal article, Sana Commerce CEO Schipperus says it’s crucial for organizations to move forward with their digital transformation projects in order to remain competitive and benefit from opportunities presented from the use of technology. “It’s clear from our research that companies are using technology to transform their processes, methods and their approach to new and existing markets. Underpinning their infrastructures and delivering efficiencies back to the business simply make it easier to compete and do business in new and existing markets. Eat or be eaten is the new mantra.”

Thomas Oppong, founder and editor of AllTopStartups, agrees. In a Microsoft Enterprise blog, he says: “The bottom line is that technology is transforming the business world. There is no question that digital transformation is no longer a choice. To stay competitive and survive, build a business that can adapt its technology and strategies rapidly.”

Interested in making changes at your workplace but don’t know where to start? Velsoft’s Digital Transformation workshop can guide you through it. Find more information here.