Digital transformation market size around the globe was estimated at US$ 336.14 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 23.6% from 2021 to 2028. There is a growing demand for evolving technologies such as the Internet of Things, across enterprises and businesses which in turn is intensifying the growth of digital transformation. The growing use of mobile devices, smartphones and applications across business processes and departments is also encouraging digitization and is expected to direct the market over the expected period. A shift from traditional to digitized enterprise models gives birth to modern technology products and services across industries and sectors.
Digital transformation plays a major role in allowing organizations to enhance and intensify their production performances, customer experience, increase brand image and customer retention ratio. It has become unavoidable for all enterprises and businesses to digitally transform their operations because it allows them to adapt to the changing technologies particularly in the era of the pandemic. Studies have shown that the rate of digital transformations across enterprises is pretty high in the post-pandemic era.
The covid-19 pandemic has led to a significant rise in awareness about the critical need for digital transformation across the globe. Organizations, industries, businesses and enterprises are recognizing the benefits of digital transformation to operate in the remote work environment.
There is a growing need for digitization of the world. Read the article to acquire more knowledge about digital transformation.
Three key areas of digital transformation for enterprises:
Customer Experience- Use of advanced technologies to recognize customers' needs in more detail and to boost customer growth.
Operational Processes- Enhancing internal processes by leveraging digitization and automation, allowing employees with digital tools, and accumulating data to observe performance and make more strategic and innovative decisions.
Business Models- Remodelling the business by expanding physical services with digital tools, commencing digital products, and using technology to provide shared services across the globe.
Increase in Productivity with Reduced Labour Costs
Enterprises and industries spend a lot on training new employees and still get moderate productivity not touching their expectations. But when those spendings are used on digitizing new tools and introducing new technologies it results in high productivity and return of investment. Digital transformation is the best way to lower labour costs and still get high productivity.
Customer Experience Enhancement
Customers nowadays are depending more on technologies, especially with the ongoing pandemic. Therefore, now it is easy for digitally transformed businesses to get knowledge about their customers' experiences via mobile applications, social media, email, etc, and can improve their experience by introducing new innovative strategies.
Every organization needs to focus on the three aspects to empower successful digital transformations in their operational functions.
Digital Twin
Digital transformation is backed by digital twins as they accelerate experimentation and accumulate data that supports more detailed business decisions.
Privacy
Digital transformation will miserably fail if there is a lack of privacy. Therefore, organizations must ensure safety and security to serve customers' expectations without any complexity. Consumers and employees as well might not support the transformation if their privacy is compromised.
Culture
Culture is the biggest barrier that is unavoidable when it comes to transformation. While empowering digital transformation, organizations must emphasize the culture of the employees and customers.
It is not only about making transformations digitally but also keeping up with the innovations because technologies are not constant, they are changing and evolving with innovations. An organization must keep up with the trends of digital transformation
AI, Robotic Process Automation, 5G, mobile development and personalized user experiences are all examples of digital transformation trends. These trends intend to work next to the humans and do everything from intensifying communication to restrain repetitive work.
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