Based on the outcome of multiple pieces of research conducted over past years, only those buyers fully utilize the products which are able to understand the need and benefits of the purchase, wherein the purchase was not made due to peer or social pressure. This holds true for the digital transformation as well. Business owners will be able to take maximum advantage of the solution only when they are able to understand what they are going to reap from the end solution.
There are immense benefits of digital transformation, but we will just dig into 3 core areas of any business and how digital transformation will assist them:
Now, let’s jump into each one of them and find what all could be achieved.
1. Financial Growth & Accounting Financial Growth & Accounting
This is the core of any business. If we consider business as a vehicle then finance is the fuel of that vehicle. The mileage of the vehicle depends upon how efficiently the fuel is used. In addition, the growth of businesses is directly dependent upon year to year financial growth. That means the fuel tank of the vehicle needs to keep expanding.
How can digitization help businesses achieve that:
a) Can help you reduce cost
When a business executes steps required to go digital, they review all the processes they currently follow in their business. In order to streamline the processes, the businesses end up getting rid of multiple redundant workflows and various tedious and time-consuming processes, this, in turn, helps reduce the cost by many folds.
b) Can help you achieve growth
When the processes are digitized, the same number of people in the workforce could now be used to cater to more number of customers at the same time. In addition to this, all this will happen without team burn-outs, missed opportunities, and/or dissatisfied clients.
c) Can help you invoice better
One of the key processes that should be digitized during the digital transformation exercise is the issuing of invoices. Once a business automates these specific accounting processes it ensures that no-bills are missed. Further, the thresholds of credit-limits could be set to highlight the risk of various customer accounts. Online transaction records, vendor management, and their pending credits and payment schedules all can be automated.
d) Superior future projections
When you digitize, data becomes a major commodity. This data once captured can be used to learn valuable information related to your customer’s buying habits, your inventory, and stock level and where the business is heading generally. With this collected data, a mixture of automation and using your past experience, many future projections could be automated which will help in determining and setting future financial goals.
2. Process Improvement
Every business has its own unique way of functional processes. For achieving an outcome, the businesses set up different levels of approvals and workflow management. As the business grows they become more and more hectic, complicated, and overload the complete process itself.
Sometimes these complicated processes become the major reason for the failure of the business. Determining the bottlenecks in the process on a timely basis and digitizing them can increase the efficiency and efficacy of the business.
Considering the same example of the vehicle, processes act as an Engine. The more efficient the engine, the more effectively the vehicle runs.
Below are few of the process improvements which can be accomplished through digitization.
a) Effective approval management
The complete workflow and approvals among different departments and stakeholders could be digitized and automated; giving businesses a full view of how the process is being followed and thus more effective.
b) Streamlining Communication
All communication between different departments can be streamlined and thus improve the way information flows in the organization.
c) Tasks, milestones, and delivery plans
Digitization can help in effectively planning the tasks, milestones, and delivery plans for the upcoming weeks and months in advance. Bandwidth and different barriers could be identified in advance and an action plan can be in place to manage various risks.
d) Digitize the way you manage your inventory
Using digitization, inventory management in your business can be automated. Multiple alerts and thresholds could be set which help in proactively determining the shortages and vendor orders can be automated.
e) Implementation of new digital sales and marketing strategy
Digitization can be applied to implement and improve various marketing campaigns being run by the business. These can be effectively planned and automated using emails, messages and other social media platforms to keep the customers engaged and also generating new potential leads. These new leads can be added to your sales funnel and can be taken through an effective sales journey.
f) Digitization of lead management and CRM processes
With digitization, customized lead management and customer relationship management processes can be implemented, even existing solutions can be integrated to make it swift and easy to use by the sales team in the business.
3. Risk and Issue Management
Most of the businesses are not able to address the elephants in the room at the right time, which leads to financial losses and even complete business failures, which could be easily mitigated if there were strong processes in place to get the right information made available to the decision-makers at the right time.
Again looking back at the example of the vehicle, risk analysis and mitigation are suspensions and brakes of the vehicle. For ensuring the smooth running of any vehicle and comfortable experience for the driver, brakes and suspension play a vital role. Below are a few ways in which digitization helps you achieve improved risk and issue management:
a) Improved reports
A good system will allow you to generate various reports in an automated way. These reports can allow you to understand and highlight various risk areas of the system. Using these reports various thresholds and alarms can be planned and implemented to manage the risks.
b) Effective escalation management
Based on the risks identified, different levels of escalations can be implemented which can be triggered on a need basis or made them automated based on different business rules.
c) Informational dashboards
Different departments and teams need access to a variety of information at their fingertips to run the business effectively. A good system will allow the creation of a diverse type of management dashboard which can be used by different teams and they can plan their actions accordingly.
d) Stakeholder’s notifications
Stakeholders who are going to get affected could be informed proactively which can be addressed in a timely and effective manner.
We have highlighted and briefly discussed just the top few benefits which could be achieved through digital transformation.
If you feel that you have now realized that this is something you’d need help with and are looking for someone who can help achieve the desired benefits with competitive pricing, efficiently and effectively. Iotasol is where your hunt ends.
Just get in touch with us and let the transformation begin.