Digitalization of Businesses

As the world continues to cope with the devastating impact of the coronavirus (COVID-19) pandemic, the necessity to go after a digital transformation plan is more serious than ever before. And while companies will for sure face significant issues during the digital transformation process. Slow progress is not an option and business leaders seeking to speed up the digitalization of their major workflow.

Digital transformation strategies

The pandemic has created an environment of sink or swim, and companies are choosing to accelerate digital transformation strategies to allow them to continue to connect to customers. In the UK, research by eFax found that 60 percent of IT decision-makers have accelerated their speed of digital transformation as a direct result of interruption to their workforce caused by the COVID-19 pandemic.

The research also revealed that the crisis has allowed many enterprises to get to grips with the need for digital transformation and combine the operational changes needed with digital applications. Even if this process started off prior to the crisis. They may have previously miss knowledge, expertise, and focus to successfully achieve a change of this scale.

Companies of all sizes have made their IT durability gains to a significant degree during the pandemic. They will now be maximizing their digital operations to meet the changing marketplace, they now find themselves in.

And while data will already be at the center of many digital transformation programs, the COVID-19 experience will likely speed up this trend. Therefore, it is safe to say that Covid-19 is “the digital accelerant of the decade”, the pandemic having brought forward companies’ digital transformation projects by a global average of six years.

When lockdowns hit, some very quick changes had to be made under considerable pressure. Not only to get operations back up and running but to adapt to remote working however the ways of doing business which was extraordinary. It is important to check that the normal routine and discipline is now been up and running around new systems, processes, and procedures.”

While digitalization can bring significant benefits to companies, such as new revenue and value-producing opportunities. There are also many risks that need to be considered and challenges to overcome throughout the course of a digital transformation process.

In the experience of Julian Ide, head of Europe, the Middle East, and Africa (EMEA) distribution at Franklin Templeton. There are tremendous benefits for companies in digitalizing – both internally and also for the end client, as outlined below.

The Benefits

First, cost and efficiency. Perhaps the biggest advantage of digitalizing is the decrease in cost and increase inefficiency. As more businesses are conducting or driven across digital channels. It will reduce the cost that associates with previous methods of doing business and increase relevant benefits. The ability to drive more interaction online has reduced the cost of travel. This also ensures the maximization of the speed of information and data movement, reducing the cost of delays and activity.

Second, productivity. It has been shown that workers are more productive when they are given the choice of working remotely. Especially as they eliminate traveling time and related tiredness, and can spend more of that time with family. Being that much more productive. Availability has also become a key point in driving up productivity gains related to remote working.

Third, increased client interaction. The ease with which an employee can interact with clients. It is either through online meetings or digitally, has decreased some of the barriers to connecting with clients, making it easier to meet with them.

Lastly, personal connections. While the initial thought suggested that COVID-19 would reduce connections when balanced well and executed effectively. Video conferencing specifically has shown that personal connections are becoming deeper. Being invited into homes and personal spaces has increased the ability for people to better connect.

Work From Home (WFH)

Digital transformation can help to simplify operations which results in productivity gains and cost reductions. For example, companies may have hundreds of internal systems that are running together at the same time. But by working from the center out on a customer journey and system that links both front and back end legacy systems. Production levels are likely to increase.

Moreover, it is safe to predict that companies that digitalize their operations will be better in place to cope in terms of how they and their staff operate remotely. Also, in coping with changing consumer behavior, such as the increasing preference for online avenues.

Earlier to COVID-19, the digital interruption was already critical for business growth. Since the pandemic took hold, exposing companies’ digital gaps and compromising their operational effectiveness. The need to accelerate digitalization has become even more acute. A critical transformation is needed if businesses across all industries are to survive and thrive in the new normal.

As a different world takes shape, COVID-19 has speed up the need for companies to transform and respond. Alongside digitalization a key enabler. Going forward, many will be looking at further investment in technologies. Including analytics and automation, that can help them innovate, gain greater business insight. That also opens up new revenue streams and, ultimately, ensures their survival.