Transformative solutions are beginning to enter the workplace at a rapid pace, bringing the change companies need to thrive. Efficient collaboration between enterprises, better innovation within the workforce, modern techniques of engaging with customers, and the ability to extract valuable insights from data are some of the main benefits that help businesses grow.
A study from the International Data Corporation (IDC) predicted that global spending on services and technologies that enable digital transformation would reach $2.3 trillion by 2023. Meanwhile, digital spending between the years 2019 to 2023 showed a steady increase. This goes to show that more and more companies are viewing digital transformation as a long-term investment.
Today, adopting the latest technologies is no longer a choice. It has become a fundamental business strategy that needs to be incorporated with operations and initiatives. This urgent requirement is causing a new wave of challenges that can overwhelm startup entrepreneurs.
There are strategies today that startups can employ to leverage digital transformation and grow their business. Here are the top 10 ways to start using digital transformation for startup growth.
1. Streamline Business Partnerships
The demands from clients and customers continue to increase while the competition within industries remains fierce. Firms are becoming steadily reliant on one another — working with distributors, suppliers, sub-contractors, and consultants — to produce a range of products and services that interest clients.
To manage these partners, companies often require document-based systems that are traditionally seen as an exhausting and inefficient process. However, technology is now available that can redesign this approach.
Using an e-signature system can allow startups to streamline workflows to make them more transparent, accurate, and timely. Doing so could even bridge the gap to help employees be more productive and effective day-to-day.
By developing a digital process early on and integrating it into the organization, startups can get ahead of the curve and allow themselves to be more available to their partners. Internal processes can experience more efficiency and flexibility while possessing the ability to scale as the company grows.
As time goes by, digital transformation provides the tools to generate resources and time gains that can strengthen business partnerships.
2. Making Faster and Better Decisions
Putting analytics and data at the forefront of a digital transformation strategy can allow businesses to leverage the benefits of big data.
Today, enterprises have great access to higher volumes of data than ever before, especially due to the Internet of Things (IoT). Possessing the right set of digital tools can allow big data to be converted into valuable insights that can be used to make quicker, informed decisions. The more embedded analytical tools are in daily business operations, the greater the effect they can have.
A key to tapping the massive potential of big data is by leveraging technologies based on artificial intelligence (AI). Innovations across analytics and data are consistently being introduced, with many of them incorporating AI capabilities. These abilities allow data analysis at a more rapid and reliable rate, allowing leaders to make better and faster decisions.
3. Helping Employees Be More Productive
Every year, workforce engagement remains a hot topic of discussion. Employers are always searching for ways to improve productivity. Digital technology continues to play a crucial role in providing workers with the means to become more effective in their roles.
Digital transformation can be used to provide core business functions with the opportunity to automate essential aspects and move away from manual processes. Automating key areas such as payroll can enable startup owners to focus on other business opportunities.
4. Prioritizing Business Security
One of the main challenges for many startup owners is how to store their data in their networks while keeping everything secure. This continues to become a complicated task every year, as it requires strict enforcement around data compliance, access, and protection from cyber-attacks.
Yet even the most meticulous security measures can be useless if a weak network forces employees to go elsewhere for better flexibility and speeds. It is for this reason why businesses should implement a security approach constantly across their networks, applications, and services.
To let the effects of digital transformation truly take place, business owners should surround themselves with partners that understand the bigger picture. They should also be able to operate transparently in order to achieve these goals.
5. Transitioning to a New Digital Workplace
Digital transformation necessitates rethinking everything, including how workers throughout the company accomplish their tasks and share information. The three main parts of this shift is bringing in tech-savvy talents, retraining employees to cope up with digitization and automation, and supporting change management throughout the organization.
Digital natives such as Generation Z and the Millennials are not familiar with a world that does not have mobile phones and the internet. These employees have a lower tolerance in handling manual processes, yet they adapt quickly to developing technology and expect customization and speed. They also provide the perspective an organization needs to innovate and grow in the digital world.
Startup businesses wishing to be competitive need to embrace both this culture and technology to meet modern challenges.
In contrast, employees who are accustomed to traditional processes may resist digitization and the changes it creates in their working relationships and roles. For example, stricter process integration may require the sales team to work with people in finance, shipping, and customer service. New reporting dashboards could make financial and performance data accessible to C-level executives even before managers can review them.
A major challenge in any digital transformation initiative is the need to retrain and reorganize employees as manual processes are removed. Some may choose to leave the company, while others may choose to stay. Those who stay, however, would require additional support so they can adjust to their new roles.
The leadership and human resources team must be the leaders for this change, embracing the need for new processes and skills. This requires integrating skillsets with the roles by way of retraining and redeployment.
6. Accelerating Change in the Business
Another big driver for digital transformation is the need to evolve as competitors join the market, grow through mergers and acquisitions, or expand.
A growing number of companies are now starting up in a virtual cloud environment and quickly develop a worldwide focus. Such speed is made possible due to the ability to test and launch disruptive technologies at a low cost in the cloud.
To keep pace, businesses must avoid the cost-cutting mentality and focus instead on building and expanding into international sectors.
Likewise, companies that encounter growth limits in their current markets are using digital technology to try new business models, begin using them, and scale quickly. Current SaaS and cloud-based applications allow them to take advantage of existing technology, switch to e-commerce, or add new applications and services.
7. Scalability With Digitization
True digital transformation can do more than simply automate legacy processes or allow companies to stay updated on technology trends. When implemented as part of a bigger strategy, it can help startups address their growing pains.
As companies start experiencing higher volume, they often learn that manual procedures simply end up no longer working. In most cases, existing systems actively prevent growth. Many also realize that the cost per transaction using manual processes is higher, making it difficult to compete with the more digitized competitors.
Cloud capabilities provide the flexibility and scalability needed to address these concerns. These platforms are constantly updated and active so long as internet connectivity is available. This allows rapid deployment of new services to meet the ongoing demand.
Many are also more industry-specific, developed to handle the security and privacy needs of healthcare organizations or the compliance required in finance agencies.
8. Increasing Overall Efficiency
Since digital processes are now more streamlined, you do not need to worry about surprise bottlenecks. Digitized processes allow the rapid flow of inter-departmental data while eliminating redundant tasks. Thus, overall business efficiency is improved.
This also results in reducing operational costs associated with time-consuming workflows. Additionally, streamlined processes and better efficiency means that the workflows can be modified easily, depending on business priorities and goals.
9. Promoting an Environment for Growth
Digital transformation is often synonymous with better customer engagement, automated workflows, efficient processes, and a stronger customer base. That is why a growing number of companies are implementing digitization, finding it easier to expand and grow.
For example, a business with no online presence may generate sales through word of mouth or their retail outlets. However, a robust and optimized website can help a business attract more customers than ever before.
Companies have more opportunities to promote their products and services, bring in more sales, and generate profits. Additionally, being able to track feedback and behavioral patterns from customers can help them improve their offerings and scale their business accordingly.
10. Constantly Providing for Demands
The modern customer expects the same type of experience whenever they interact with a company. For businesses, this can be difficult to achieve all the time. There are now more choices both in terms of where and how to deliver applications from and who to connect with to provide the needed services.
Organizations are increasingly demanding more scalable IT services and networking capabilities. Providing the right kind of user experience has become a crucial part of business transformation.
To stay ahead, leaders have to maintain discipline and performance in all operations.
Industries Going Through Digital Transformation
Due to the demand for digital transformation, brands across industries are beginning to adapt to new customer expectations and the influence of their competition. Here are several industries that are significantly changing the way they operate by using digital processes and technologies.
Consumer Retail
Consumer retail is one of the first industries people think about when it comes to complete digital transformation. The proliferation of e-commerce and the present technologies have revolutionized the way users buy today.
Many businesses are developing flexible e-commerce environments with a customer-first approach. Adding to this is the fact that modern consumer retailers are integrating technology that blurs the lines between digital and physical worlds.
Enterprise Software
Enterprise software is a significant disruptor in many industries and is also a sector that has to adapt constantly. Applications such as Microsoft Teams and Slack have influenced the way many organizations communicate nowadays.
Similarly, programs that can be accessed through a cloud platform have changed how businesses host their necessary tools. For instance, organizations are now able to use Software-as-a-Service (SaaS) to meet their growing needs.
Health and Pharmaceuticals
Another industry that continues to be affected by technology and customer expectations is the healthcare industry.
In one study, 70% of people in the United States use the internet to get health information, and more than 40% of patients research their conditions before visiting a doctor. Besides making clientele more informed, a number of other technologies are disrupting the industry and providing more efficient patient care. These include using wearable technology, electronic health records, and the Internet of Things.
Blockchain technology can also be applied in healthcare as a means to improve security while protecting patients. Such adaptation can also provide a secure method of tracing pharmaceuticals since each data block in the chain is untouchable and cannot be altered.
Shipping Logistics
A growing use of digital transformation processes can also be observed in the shipping industry. Many shipping organizations are beginning to feel the need to be more efficient because of customer expectations.
Trends in digital transformation can affect nearly every aspect of the shipping industry from the supply chain to its core business systems. The road to improved operational efficiency involves the digitization of logistics workflows by way of machine learning, AI, IoT, blockchain, and other warehousing innovations.
Conclusion
Digital transformation is real and it is happening around the world at this very moment. It favors startup companies looking to grow and leverage the latest technologies available. In turn, the more established organizations risk being left behind if they fail to move away from traditional processes.
In this rapidly changing environment, the businesses that succeed are the ones that are willing to act now to engage themselves by reimagining their companies through digital transformation.
