Claims are often made about digital transformation offering huge benefits for businesses. However, a lot of businesses still have a long way to go to complete their transformation. This means it can be difficult for them to know exactly how much of an impact it will make in real terms such as revenue. What have the digital transformation benefits really been for businesses that have completed them?
Digital Transformation Benefits
According to a survey carried out by Fujitsu of business leaders across 15 countries, the top three outcomes of digital transformation were:
- Increased revenue
- Improved customer relationships
- More competitive products
The same study found that companies that have embraced digital transformation are 26% more profitable than their competitors and enjoy a 12% higher market valuation. This shows that digital transformation has a real impact on business growth.
One of the main aims of a digital transformation should be to increase business agility. A transformation should not just be considered a one-off project in response to current technology but a way to make the business as a whole quicker to react to market changes.
Fujitsu found that 71% of businesses saw a faster response to changing market conditions as the main benefit of business agility. With changing technology and customer expectations this should be an important focus for any digital transformation. This may require a cultural shift in the business as well as a technological one.
Why Undergo a Digital Transformation in 2018?
In the era of the digitally-native customer and ever-shifting technology landscape, digital transformation has become one of the most viable strategies to accelerate business activities, processes and growth and to fully leverage available opportunities.
Around 89% of medium and large businesses worldwide are currently undergoing a digital transformation, with 34% of those already returning benefits. In these conditions, those who do not undergo a transformation risk being left behind.
But how do you achieve these digital transformation benefits? Read next week’s blog for 5 tips for a successful business transformation.