5 Benefits of Digital Transformation
COVID-19 has sped up the adoption of digital technologies by several years, forcing businesses to adapt faster than they can. As a result, digital transformation has become one of the top priorities for businesses in 2021. In digitalized companies, things and processes move faster and are less prone to errors with the help of technology. Manual data entry errors and data transfers between one system to another can be integrated using Application Programming Interfaces (APIs) and Software Development Kits (SDKs). However, there are still a handful of businesses that remain unaware of this trend. This could be because they do not understand the benefits of Digital Transformation. In today’s article, we will cover five benefits of Digital Transformation for your business.
What is Digital Transformation?
Digital Transformation is the adoption of digital technology into all aspects of a business resulting in fundamental changes to how businesses operate and how they deliver value to consumers.
One good example of a digital transformation is Disney. Disney launched its very own Disney+ streaming platform in 2021, which has proven to be a great success. So much so that its market value increased by $32 billion after forecasting it will triple Disney+ subscribers by 2024.
5 Benefits of Digital Transformation
1. Better Customer Experience
If you think that going digital only benefits your business, you are half right. Going digital will greatly benefit your customers as well. These days, consumers are looking for quick and valuable solution to their problems. Technology, without a doubt, will be the first option on consumers’ minds. Imagine if you had forgotten to purchase the main ingredient for tonight’s dinner. No problem, Amazon Fresh will deliver whatever you have ordered in two hours. In order to remain competitive in the market, it is important that businesses recognize and create digital solutions that ensures that the customer is always in the center of digital transformation.
2. Data-Based Insights
Going digital means that you have the ability to track metrics and achieve data insights. It also means that you are able to translate raw data into insights across various fields, such as operations, production, finances, and business opportunities.
With the many data analytics tools available online, businesses are able to analyse the performance of specific products and services easily. Once the analysis is completed, businesses are able to use these data to optimize different strategies and processes in order to achieve better results. By better understanding your customer and their needs, businesses can establish a more customer-centric business plan. Businesses may also utilize both structured data (personal customer information) and unstructured data, such as social media metrics as an effort to increase business growth.
3. Collaboration Amongst Different Departments
When an organization decides to adopt digital transformation, it is vital that all work processes and strategies, down to the core structure and company culture be addressed. Because of this, there is a chance for collaboration throughout the organization. In order to maximize the chances of a fruitful switch, there needs to be strong communication. With support, employees are able to put aside age gaps and social divides to engage in conversation and learn together.
4. Increases Agility
Agility is the ability to continuously improve and develop quickly. The digital landscape’s rapid expansion and constant change make it impossible for businesses to rest on their laurels. COVID-19 is a great example of how businesses have to be agile. When work from home became the default, some companies were able to move to remote work seamlessly. On the other hand, some companies were left scrambling due to the lack of digital processes. Therefore, it is paramount that all businesses must be prepared to adapt to situations they may or may not have encountered before. There will always be new competition and new trends, and customers will always want the best. Hence, it is crucial that businesses are able to stay ready at all times.
5. Updates Skillsets and Knowledge
As the demand for specialized skills continues to grow, the future of digital business may be heavily built on skillsets such as
- Artificial Intelligence
- Data Analytics
- Machine Learning
- Augmented Reality
- Cloud Infrastructure
- Blockchain Technology
Therefore, organizations that adopts digital transformation allows their employees to develop skills for the future, which enables them to have a competitive edge over others.
Singapore Government’s Effort (Digital Transformation)
To survive and prosper, organizations must integrate digital technology into all elements of their operations in order to significantly change how they operate and give value to their consumers.
Since 2010, the Singapore Government has been pressing firms – both small and medium-sized enterprises (SMEs), to turn to technology in order to remain relevant and competitive. In 2016, it was found that only 15% of SMEs agreed that that was a need for technological change. Fast forward 5 years later in 2021, nine in 10 recognise the importance of digital transformation.
That being said, it shows that the Singapore Government has good foresight, and that they recognised the importance of Digital Transformation for businesses very early on. While there are many campaigns, schemes and grants that the Singapore Government has pushed out to aid businesses with their digital transformation, we will be covering three initiatives in this article.
- Digital Leaders Programme (DLP) – Jointly run by the Infocomm Media Development Authority (IMDA) and Enterprise Singapore (ESG), the DLP work towards assisting digitally progressive local companies accelerate their digital transformation plans. From being able to build an in-house core digital team, to charting a digital roadmap, these are just some of the benefits of the DLP. In order to apply for the DLP:
– You must be a business entity registered and operating in Singapore, with at least 30% local shareholding.
– Non-Infocomm Technology (Non-ICT) companies that have digitalised and are seeking to push new boundaries to develop new capabilities and capture growth opportunities.
- Enterprise Development Grant (EDG) – The EDG helps Singapore companies scale and transform. This grant supports projects that help businesses upgrade their businesses, innovate or venture overseas, under three pillars:
– Core Capabilities: Helps to strengthen business foundations.
– Innovation and Productivity: Supports businesses in exploring new areas of growth, or ways to enhance efficiency.
– Market Access: Helps companies to scale and venture overseas.
Similar to the DLP, in order to apply for EDG, you need to be:
– Be a business entity registered and operating in Singapore, with at least 30% local shareholding.
– Be in a financially viable position to start and complete the project.
- Productivity Solutions Grant (PSG) – The PSG supports companies keen on adopting IT solutions and equipment to enhance business processes. For a start, PSG covers sector-specific solutions such as retail, food and the construction industries. On top of the sector-specific solutions, PSG also advocates adoption of solutions that cut across industries, for example, customer management and data analytics. In order to apply for the PSG:
– You must be a business entity registered and operating in Singapore.
– Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore.
– Have a minimum of 30% local shareholding; with Company’s Group annual sales turnover less than S$100 million, OR less than 200 employees (for selected solutions only)
In a world where people heavily rely on technology, Digital Transformation can no longer be ignored. Especially if an organization wants to succeed and gain profits. With digital tools such as the multilingual web framework, the process of expanding and scaling internationally is now easier as compared to before. It is obvious that only businesses that fully embrace and invest in their digital transformation will thrive.
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