No matter what industry you are in, your company must embrace digital channels and emerging technologies to be successful in today’s competitive marketplace.
It is essential to invest time, money, and energy in your digital transformation strategy if you want your brand to have a long-lasting future. This will allow you to engage consumers, increase operational efficiency, speed up the process of getting products or services to market, and foster innovation.
IDC experts predict that global spending on digital transformation strategies will exceed $2.8 trillion by 2025. This is more than twice the amount spent in 2020. The investment will enable organizations to develop a holistic digital strategy that includes people, processes and technology.
Here are 10 reasons why your company should invest in digital transformation to inspire you.
Consumer Culture
- According to Digital 2022: April Global Statshot Report, nearly 92 percent of internet users worldwide watch digital videos each week. This includes tutorials, music videos, and gaming videos. While print media is still important, it’s less powerful than ever. The modern world is flooded with visual content. Just look at TikTok’s phenomenal rise. To connect with your target audience, you need to provide engaging video content. These communications can be delivered via digital channels and touchpoints.
- The average college student has never even touched a stamp. Digital natives have made it difficult for analog methods of internal and promotional communication to deliver the results that you need to drive leads or generate revenue.
- According to a Report by Reviews.org, 62 percent of Americans admit that they sleep with their phones and 80 percent say that they check their phone within the first ten minutes after waking up. This is a clear indication of how dependent people are on digital technology and their smartphones. Optimize your content (blogs, landing pages and emails) to ensure maximum conversions. Mobiles are best. You should make it easy for customers to move from one device to another.
The State of Digital Transformation
We examine the current professional climate, and discuss the need for digital transformation.
- According to McKinsey and Company, the Covid-19 pandemic accelerated companies’ digital transformations. In some cases, it was a leap of ten years. This shows that digital services and products have been a key focus for companies to be competitive in a changing market and offer customers what they want. This level of adoption is not something that was expected, but it’s what businesses need to keep operating and thrive.
- A company with a digitally-savvy executive team is 48 percent more successful than its peers in terms of valuation and revenue. Sloan Management Review published a similar study that found that only 7 percent of the 2,000 companies were led by digitally proficient teams. This is despite the fact that more than half of these teams are digitally-savvy and have a good understanding of how new tech will impact their company’s success. Not only must employees be digitally proficient, but the executives need to also have the knowledge and skills to implement a digital transformation strategy.
- According to Gartner, 63 percent of companies expect that they will get financial return in three years for IoT projects. You can accelerate your commercial success by investing in IoT technologies like voice search, chatbots, and automation.
- According to Valior, there is a strong correlation between digital transformation and financial performance. The revenue growth rate for companies that are further along in their digital journey was roughly double that of those at the beginning. This is why investing in digital transformation makes sense, as revenue generation is the main goal of business growth acceleration.
- The way that businesses generate leads and make money is changing with the advent of digital channels and technologies. The New York Times reported for the first time that digital subscriptions and revenue out of digital products surpassed print. Meanwhile, Amazon, the global giant in ecommerce, is forecast to record ecommerce sales of $729 billion by 2022. This is despite a decline in sales compared to 2020’s bumper year. This demonstrates the power and impact of digital on the bottom line.
- According to the ‘CMO Survey, investment in digital marketing activities increased from 2021 to 2022. Companies are most interested in data analytics (78%), website optimization (74%), search and digital media (71%), as well as marketing technology platforms or systems (70%). There are many digital platforms, channels and touchpoints that are available, and you can enjoy continued business success by investing in these areas.
- A third of the world’s population are under 20 years old, followed by 30 percent of those aged 20-39 years. Over sixty percent of the world’s population are under 30 years old, which means that there are more digital natives or budding digital natives than ever before. Digital transformation is essential if you want to continue engaging and attracting this new generation of digitally-minded consumers.
Conclusion
To ensure your business’ success, digital transformation is essential. This doesn’t only mean that you need the most efficient technologies; you also need to have a workforce capable of driving transformation.
Training is the best way to make sure your employees are ready for the challenge and proficient in digital skills. You could choose to offer short courses online that help you master a specific topic, such as data analytics or seo agency, or a more comprehensive program that teaches the basics. It doesn’t matter what your company needs, it is crucial to evaluate your digital capabilities and identify the gaps that can help you grow.