ARTICLES — October 08, 2021

Top Business Rationale for Digital Transformation

COVID-19 is the latest event in our lifetime to illustrate how much businesses, markets, and leaders are dealing with uncertainty. With the wave of change, almost all the companies will need to adopt digital tools and transform into digital businesses in order to stay competitive.

Here are some key reasons why digital transformation is a strategic move for business longevity:

Faster Innovation

A data-driven approach is one of the best ways to assess a developing project. By using analytics, companies can identify upcoming changes and shift more quickly as a response. This flexibility is what digitally mature companies have. They look at old problems by using data and gain a new perspective that allows for faster solution finding, reinvention and innovation.

Modernize The System

Keeping up with current technology is another important investment for companies. Updating your management and operational tech into a cloud-based IoT ecosystem will help lower operating costs, save you from overuse of technical operators, and add front-and back-office automation for top efficiency. Modernizing your system will give greater agility to compete in and capture the market.

Industry Dynamics and Growth

In consumer-oriented industries, digital transformation is helping companies to capitalize on direct-to-customer (DTC) opportunities. DTC allows the company to rebuild a new customer relationship, for example, in the traditional business-to-customer (BTC) model, a retailer like Walmart works with manufacturers and distributors and sells products to consumers. With DTC, the companies sell their brand directly to the consumer through e-commerce sites or branded retailers.

According to Away, the travel company, since they've established the company as a trusted source of travel information, they gain a massive instagram followers, and their website receives around 800,000 monthly views. The company has generated revenue from it’s DTC business $125 million in less than three years. Such results clearly demonstrated how digitization can help companies capitalize on changing market dynamics and customer behavior.

Resilience

Unexpected events like the pandemic can prove to be devastating to businesses. Companies today need to be resilient to quickly recover from shocks. Digital transformation can increase resilience by improving several operational aspects in the company such as maximizing cloud computing in order to meet the scalability of market demand, using machine learning to identify customer behaviour, and utilizing cyber capabilities to secure newly launched projects.

In terms of innovation, digital transformation can be done in various ways and you have to decide quickly and wisely. But, don’t be wrong, consult with our IoT Experts to make sure your transformation goes well.

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