Digital transformation strategy has remained a buzzword in the corporate corridors for almost two decades. As a disruptive technology and a critical strategic initiative, digital transformation solutions have gained prominence worldwide in recent years. The recent pandemic has made digital transformation inevitable to survive and thrive amidst the recessionary economy and global shutdowns.
Industry experts say:
– 70% of enterprises have either adopted a digital transformation strategy or are working on it
– Operational efficiency, quicker TTM (Time to Market), and the ability to meet customer expectations are considered as the top benefits by 40%, 36%, and 35% respectively
– 60% of the companies have created new business models based on digital transformation
– With 95%, the services sector tops the chart of industries that have adopted digital-first strategies
The future of digital transformation solutions will pave the way for industry 4.0 as per a recent report from IDC, which has predicted that worldwide spending on digital transformation technologies will reach $2.3 trillion in the year 2023.
In this article, we are going to see how digital transformation can be a game-changer for modern enterprises in the year 2021 and beyond. Let’s start from scratch and go through the explanation of digital transformation (DX).
What is Digital Transformation (DX)?
Broadly speaking, digital transformation is the process of automating and modifying current business processes with the help of modern technologies. Digital Transformation is often used by several industries to attain operational efficiencies and achieve optimized productivity.
In terms of industry 4.0, it represents a more agile and technologically advanced way to add value to the business. At present, several technologies like AR, VR, IoT, sensors, beacons, data analytics, machine learning, & a lot more are being used by large corporations to enhance their business processes.
As a business manager, you need to keep digital transformation one of the top priorities for the year 2021 to eliminate the risk of extinction over the next five years. You may ask a question- why does it so? Here we give the five reasons as an answer to your question.
Five Reasons Why You Should Include Digital Transformation in Strategy?
1. Cost-Effective Production
One of the most important objectives of undergoing digital transformation is to reduce operational expenses. Digital transformation technologies like remote assistance, remote asset monitoring, IoT, etc. It can help automate several industrial processes while maintaining the quality and standards that are supposed to be adhered to. Optimized and automated processes will eventually lead to lower labor costs and give more control on the budgets.
2. Remote Production Management
Industrial digital transformation strategies helps ensure a seamless production management system. With a remote asset monitoring system installed, an enterprise can ensure optimum production levels every time without even physically being present.
Furthermore, digitization of processes & equipment makes it easier to keep track, to understand if maintenance was due if any machinery has not been able to achieve optimum production, etc.
3. Efficient & Productive Assets & workmen
Digital Transformation Solutions like Connected Assets or Connected Workmen give full access to data like whereabouts and the status of maintenance for assets, whether machines faced any damage or workmen are in hazardous areas or in areas with restricted access, etc.
4. New Business Opportunities
Enterprises that have adopted one or more digital transformation solutions reported to have introduced a new business venture. This can be attributed to the fact that automation gives businesses the space to focus on their core competencies. Solutions such as AI, machine learning and Big Data help give insights into production processes, trends, demands, etc. This enables companies to understand, explore, and introduce new business opportunities.
Similarly, companies who have adopted industrial IoT technologies, feel that it is much easier for them to be able to introduce new product lines in the market as per growing trends and have seen a considerable decrease in time to market (TTM) for these products.
5. Increased Competitive Advantage
Digital Transformation helps enterprises in setting and maintaining higher standards of product quality. Higher product quality leads to, better customer experience, better brand image, higher product differentiation in comparison to its competitors, and increases brand value.
Enterprises often see a rise in their brand equity once they start adopting industry 4.0 solutions. They strongly feel that they would rather have their workforce contribute to the brand value rather than mundane tasks that can be automated.
6. Data-driven Decision Making
Digital Transformation strategies propagates gathering and storing data so that it can be analyzed to make better decisions. Digital technology tools can help enterprises understand the data that is collected during processes to make more informed decisions.
Digital transformation is a need of the hour for modern enterprises, you should give it the top priority for 2021. It not only brings your company nearer to customers but also helps you make informed decisions quickly. It is fair to mention that digital transformation strategies can improve the efficiency of all business processes and generate new revenue streams while increasing profits and ROI.
At Rejig Digital, we drive digital transformation across various industries by providing high-end solutions for connected assets, remote asset management & remote asset assistance.
Do you want to transform your enterprise digitally and drive its growth while standing ahead of the curve? Simply send us an email containing your business needs at firstname.lastname@example.org & we will help you make a business strategy based on emerging technologies including IoT, AI, and AR.