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12 benefits of digital transformation

Digital transformation is more than a buzzword: It’s an essential aspect of success that every modern organization needs to consider in order to keep pace with changing customer needs and innovations. As we’ve seen over the past couple of years, all companies—regardless of their industry—must be able to remain agile and adapt to change. Otherwise, they will fail to progress and keep up with competitors, much less outpace them.

Because successful digital transformation fundamentally changes the way a company operates and delivers value to its customers, it can offer powerful benefits. From improved customer and employee experience to greater efficiency, every company can realize noticeable and continuous results by investing in digitization. In this blog post, we will discuss 12 powerful digital transformation benefits that companies can expect to see throughout their journey. Let’s dive in.

1. Improved customer experiences

Customers want personalized, convenient, and accessible services, and if they don’t receive them, they will go elsewhere. In fact, according to PwC, over half (52 percent) of customers will switch to a competitor after just a few negative experiences. Along those lines, 17 percent will leave after just one bad experience. It has never been more imperative for every organization to provide an excellent customer experience every time.

Digital transformation empowers organizations to provide better customer service by providing more personalized services that can help them meet ever-climbing expectations. Capabilities like process automation and artificial intelligence can help teams offer faster responses with less effort. Similarly, with self-service options like virtual agents and live chat, organizations can help customers solve complex requests without manual management from employees while preventing interrupted workflows.

2. Increased efficiency and productivity

Digital transformation initiatives can also streamline business processes, enabling organizations to increase employee productivity. By using digital tools and technologies, businesses can automate tasks and reduce the time and resources required to complete a project—especially in comparison to manual processes. These automated, streamlined workflows ensure no step goes missed while saving employees time in the process. In fact, saving an employee just 3.6 hours a week can save them 23 working days per year.

With these capabilities, companies can accomplish greater results in less time, enabling them to reach more customers with their products or services. Digital transformation also reduces the risk of human error while increasing speed and freeing employees to focus on more strategic and critical tasks.

3. Cost savings

Not only do companies save time by investing in automation and digital transformation, but they also save money. For example, using digital tools can help you reduce the operational costs associated with manual processes and disparate systems. Instead of relying on paper to track everything, which can get expensive and confusing quickly, digitization enables teams to access everything they need on one system.

Even more importantly, digital transformation empowers organizations to make better decisions based on improved access to data. Because everything they need to analyze performance is right in front of them, companies can make sure they’re investing in the right resources. This means they can save money on outdated tools or processes in favor of more profitable options.

4. Improved data management

As you’ve probably heard, data is king. However, not all data is relevant to a company’s desired outcomes or business strategy. Being able to sort and analyze data is absolutely essential to success, as it offers visibility into current performance and future opportunities for business growth.

As we mentioned before, digital transformation offers improved data analytics tools and technologies that enable organizations to make better decisions and manage their data more efficiently. It can also improve data management by ensuring that all data is accurate, complete, and accessible to those who need it. With digital technologies, businesses can store and manage data more efficiently, reducing the risk of errors and inconsistencies.

5. Better collaboration

Remote work is here to stay, and it’s essential that organizations have the tools needed to collaborate just as effectively as they would if they were communicating together in person. Digital transformation can help businesses do exactly that: With digital tools like instant messaging, video conferencing, and collaborative workspaces, teams can work together more closely and make decisions faster.

Digital collaboration tools also facilitate knowledge sharing and learning, enabling cross-functional collaboration, breaking down silos, and enabling teams from different departments to work together more effectively. For example, digital collaboration platforms can provide a centralized location for all relevant information and best practices, making it as easy as possible for employees to access the knowledge needed to succeed in their roles. These opportunities make fostering remote employee collaboration much easier.

6. Innovation

Innovation plays a key role in the success of today’s organizations, as it enables them to remain agile despite disruption and change. By investing in digital transformation, companies can not only create novel solutions but also disrupt traditional models and processes to unlock new possibilities and capabilities. Digital technologies and practices empower teams to experiment, test, and pivot quickly to foster a culture of continuous improvement and agility.

Along those lines, a digital transformation strategy isn’t just about new technologies and tools—it also offers cohesive values for an entire organization to adopt, including embracing change, encouraging creativity and strategy, and promoting continuous improvement. Investing in digital transformation isn’t just investing in tech—it’s investing in your people, culture, and long-term strategic value.

7. Competitive advantage

Not only is the market saturated with competitors for every organization, but it’s also always changing. From shifting customer expectations to new compliance considerations for highly-regulated companies, there’s always something new on the horizon to keep an eye out for. By embracing digital transformation and the benefits that come with it, companies can differentiate themselves from competitors through streamlined business operations, optimized efficiency, and a better customer experience.

Along those lines, digital transformation makes it easier than ever to understand customer preferences and behaviors, as well as tailor offerings by providing personalized services. Organizations can also utilize technology to improve their marketing efforts and effectively leverage customer segmentation, further empowering them to stand out from the crowd. These capabilities are key to improving the retention of both customers and employees.

8. Greater agility

As we all know, disruptions and crises are inevitable in business. Organizations need agility to navigate the dynamic landscape, meet customer and employee expectations, drive innovation, improve operational efficiency, and manage risks. Without agility, they will fail to genuinely adapt their business models and won’t stand out from the crowd or achieve their goals.

With tried and true workflows offered by digital transformation, businesses can quickly adapt to changing circumstances while maintaining continuity, enabling them to obtain their desired business outcomes quickly. Similarly, digital transformation empowers companies to adapt their operations to meet changing market conditions, customer demands, and competitive pressures. Because technology offers real-time data collection and insights, companies can make informed decisions promptly and experiment with new ideas, products, and services in the market quickly.

9. Enhanced employee engagement

Employee engagement is critical to the success and growth of organizations. Not only are engaged employees passionate, committed, and motivated, but they also represent the organization well: They understand the purpose of the company’s values and objectives and strive to deliver on them. However, delivering excellent employee experiences all the time isn’t always an easy feat—especially considering remote work and disparate locations.

Digital transformation can alter the employee experience by providing tools that enhance collaboration and communication regardless of physical location. As a result, employees feel connected to their team, which develops a sense of belonging and improves teamwork. Similarly, with the automation delivered by digital transformation, employees can free themselves from mundane tasks, freeing up time to focus on creative, fulfilling work. Considering these capabilities, employees can experience improved job satisfaction, work-life balance, recognition, and workplace environments.

10. Sustainability

Sustainability has become a critical consideration for every organization. Businesses have recognized the impact of their operations on the environment, and they are expected to incorporate sustainable practices into their everyday practices.

Luckily, doing so also offers substantial business benefits. Adopting sustainable practices enables organizations to contribute to environmental conservation, enhance their brand reputation, attract environmentally conscious customers, and gain a competitive advantage.

Embracing the digital transformation journey is a great way organizations can contribute to a more sustainable culture by reducing their environmental footprint. For example, moving to the cloud empowers them to reduce paper consumption and waste as they adopt digital workflows. Similarly, data analytics and improved visibility into processes enable organizations to identify and minimize environmental and social risks within their workflows and supply chains.

11. Compliance

Organizations across industries must adhere to various laws, regulations, and industry standards to ensure legal and ethical conduct. However, it’s not easy to keep up to date with the latest in compliance and regulations—especially if you’re in a highly-regulated environment like healthcare. And the stakes are high: Failure to comply with requirements can result in severe consequences like reputational damage, loss of trust, and legal penalties.

With digital transformation, organizations can implement consistent compliance efforts. By leveraging digital technologies and solutions, organizations can automate compliance processes, improve accuracy, and reduce the risk of noncompliance. Digital tools streamline reporting processes, offer accurate regulatory filings, and enable teams to store and manage compliance-related documents securely and efficiently.

Similarly, data analytics can be useful in monitoring and identifying potential compliance risks in real time. This proactive approach can help organizations take corrective actions quickly and mitigate violations before they escalate.

12. Improved supply chain

Supply chain problems have been one of the most prominent challenges for organizations across the globe. From labor shortages and lack of equipment availability to global bottlenecks, companies have had to adapt their supply chain management quickly in order to navigate unpredictability. While these issues certainly won’t disappear overnight, the good news is that digital transformation can help businesses better plan, execute, and optimize their supply chain lifecycle.

Leveraging digital technologies empowers organizations to enhance visibility, address inefficiencies, boost collaboration across the supply chain ecosystem, and gain insights into their processes to identify bottlenecks and improve decision-making. Additionally, digital transformation facilitates the automation and digitization of key supply chain processes, like demand forecasting, inventory management, and order fulfillment. Automated workflows reduce manual errors, improve operational efficiency, and shorten lead times, resulting in cost savings and improved customer satisfaction.

The pandemic's role in accelerating digital transformation

The COVID-19 pandemic has dramatically expedited the digital transformation journey for many organizations. It served as a stark reminder of the importance of adaptability in a rapidly changing world. As businesses worldwide were compelled to adopt remote working conditions, digital solutions proved to be a game-changer in maintaining seamless operations and customer interaction.

As the world has been pushed into the digital age, companies that were already investing in digital culture and digital marketing strategies found themselves at an advantage. They were better equipped to cater to the sudden changes in consumer behavior due to their robust digital presence and infrastructure. CIOs were thrust into the spotlight, tasked with leading their organizations through these unprecedented times by leveraging technological advancements and ensuring the continued delivery of excellent user experiences.

One of the greatest digital transformation benefits in this context has been the wealth of customer data that businesses can now harness. In the digital age, customer interactions are primarily online, generating vast amounts of data. When properly analyzed and utilized, this data can provide valuable insights into customer behaviors, preferences, and needs, allowing businesses to customize their offerings and improve the overall user experience. As a result, businesses can not only retain their existing customer base but also attract new customers, leading to increased revenue streams.

In the post-pandemic era, digital marketing strategies have also gained paramount importance. In a world where physical interactions are limited, businesses need to reach their customers through digital channels. Companies that have adapted to this shift and embraced digital marketing are already reaping the benefits.

In essence, the pandemic underscored the importance of digital solutions and adaptability, serving as a wake-up call for companies to expedite their digital transformation journey. With the right digital tools and strategies, businesses can not only survive but thrive in the digital age, capitalizing on new revenue streams, optimizing user experience, and harnessing the power of customer data to stay ahead of the curve.

The benefits are clear

As a whole, digital transformation is a necessity for organizations seeking to thrive in today’s dynamic and competitive digital business landscape. The benefits it offers—from improved operational efficiency and enhanced customer experiences to increased agility and innovation—are transformative for organizations of all shapes and industries.

Embracing digital technologies empowers businesses to optimize their processes, leverage data-driven insights, and unlock new opportunities for profitability and success. It fosters collaboration, empowers employees, and drives sustainability and compliance efforts. It is not merely a technological upgrade or a nice-to-have: In today’s competitive landscape, digital transformation is a strategic investment that offers long-term success.

We’re with you for what comes next

You're working in a rapidly shifting environment.

Global dynamics, AI advancements, heavy competition–the only certainty is change.

We get it. And we’re here to help you harness the full potential of ServiceNow to simplify transformation.

Let's navigate the future together.


Master digital transformation

Drive growth and innovation in your organization with our essential ebook. Learn to build a compelling case for digital transformation, aligning with strategic goals for success.

We’re with you for what comes next

You're working in a rapidly shifting environment.

Global dynamics, AI advancements, heavy competition–the only certainty is change.

We get it. And we’re here to help you harness the full potential of ServiceNow to simplify transformation.

Let's navigate the future together.


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