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The current trend of digital transformation is an undeniable force in every industry, impacting society at large, especially businesses. So, is pursuing it the right thing to do? This article provides insights into the impacts and benefits of digital transformation for businesses.
Digital transformation is the process of applying information technology and digital techniques to every aspect of business operations, from organizational workflows to approaches in engaging and interacting with customers. Its purpose is to optimize processes, enhance operational efficiency, and foster innovative creativity.
Throughout this process, businesses incorporate technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Cloud Computing, Big Data, Business Intelligence (BI), and many others. These technologies aim to improve performance, increase business flexibility, and ultimately create new value for employees, customers, and shareholders.
What is Digital Transformation?
Digital transformation is not just about applying technologies to work processes but also about changing work processes, training employees, and the mindset of all staff in the organization.
Digital transformation allows businesses to leverage technology to create new services and products, optimize work processes, provide a better experience for customers, and enhance competitiveness. This can make businesses more efficient and adaptable in an increasingly digital and competitive business environment.
Digital transformation affects many aspects of daily life for ordinary people, especially evident during the COVID-19 pandemic, altering the way we live, work, and communicate. A clear example is the shift in consumer behavior toward online shopping rather than traditional brick-and-mortar stores.
For businesses, digital transformation has positive impacts on various aspects of operations, including organizational management and business performance. In Vietnam, digital transformation is often understood as transitioning from traditional business models to digital business models by applying new technologies to adapt to market trends. This process helps change how management, work processes, and organizational culture function within a business.
In the past, only large companies with abundant financial resources could access the latest technologies, putting them ahead in the market and leaving smaller competitors behind. However, in the current era of comprehensive integration, every business can access cutting-edge technologies, creating a more equal technological competitive environment among businesses.
Digital transformation plays a crucial role in improving and developing modern business activities. It is not just about keeping up with the times but also about the "survival" of every business. Here are the benefits of digital transformation in businesses:
Benefits of digital transformation for businesses
Traditional working methods relying on outdated approaches (primarily paper-based, manual work) have been deemed inefficient and time-consuming. In the digital age, businesses need the capability to achieve maximum benefits with less effort.
Digital transformation helps businesses automate processes, optimize resources, reduce costs, and save time. This enables businesses to improve operational efficiency, increase labor productivity, and minimize risks.
Enhancing customer experience is one of the top benefits of digital transformation, as it has the power to transform how customers perceive a business.
Digital transformation enables businesses to provide better products, services, and customer experiences. This helps businesses attract and retain customers, establishing a competitive advantage.
Digital transformation helps businesses exploit new business opportunities, expand markets, and increase revenue.
Successful digital transformation brings fundamental changes to organizational operations, allowing them to adapt and innovate in a rapidly changing environment.
Digital transformation is one of the ways for businesses to survive and keep up with the rapid market development. With advancements in the business environment, businesses can enhance their competitive capabilities and "survive."
Digital transformation helps businesses adapt to market changes, meet customer and competitive demands.
Digital transformation helps businesses expand their markets, reach more customers, and consequently increase revenue. A report by the SAP Business and Oxford Economics Information Center in 2017 found:
80% of organizations that completed digital transformation reported increased profitability.
85% reported an increase in their market share.
On average, leaders expected higher revenue growth of more than 23% compared to their competitive peers.
Digital transformation helps businesses automate processes, optimize resources, and thereby reduce costs. For example, manufacturing businesses can use artificial intelligence to optimize production processes, reducing costs.
Digital transformation helps businesses optimize processes, thereby enhancing productivity. Businesses can avoid wasting time on repetitive tasks like data entry and searching, enabling them to focus on more critical tasks. This is why most organizations consider this a top benefit when undergoing digital transformation.
To survive and sustain growth, effective management is crucial for businesses. Digital transformation helps businesses collect and analyze data better, enabling more effective business decisions
In operations, businesses often face issues with internal communication. As businesses grow, effective communication with employees becomes a challenging problem. To address and improve this issue, a digital platform is essential.
Expanding the scope of work through digital transformation plays a crucial role in creating flexibility and enhancing efficiency for businesses. How businesses approach work through digital transformation can include various forms, such as remote work, internet connectivity, mobile app usage, and creating online channels.
The digital transformation process helps eliminate indirect communication forms, reduce slow feedback, prevent information leaks, and optimize information sharing. As a result, businesses can improve work efficiency, become more reliable, and achieve many successes in the digital transformation process.
The digital transformation process brings many benefits to businesses, especially in increasing security capabilities. When implementing this process, businesses often proactively invest in advanced security technology solutions to protect their data and systems. In this way, critical data and information are safeguarded against online security threats.
Digital transformation is an inevitable trend for businesses and society. Businesses that quickly embrace the digital transformation trend will have more opportunities for success in the future. Rabiloo is proud to be a technology company with many years of experience in consulting and directly implementing digital transformation plans for businesses from various industries.
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