The notion that the modern world heavily relies on technology for a broad range of daily tasks has become indisputable. This reliance has reached such a degree that it is wise for companies to adapt to the current ecosystem by carrying out a digital transformation. This is especially significant when preparing to sell a business. Anyone who is interested in buying a company is more likely going to invest in one that comes with the potential to keep making a significant, long-term profit.
Regardless of whether you want to improve your company for your own benefit or because you plan on selling it, digitization is bound to increase its value. Keep reading this article to get more information about the reasons why digitization plays such a crucial role in the success of a modern-day business.
What is Digitization, Digitalization and Digital Transformation? | Tech One Global
1. Adds relevancy to the company
Digitization is typically defined as the action of converting analog information into a digital form in a way that makes it readable by a computer. Therefore, digitizing a company refers to incorporating information technology. The way to do this is by means of a website, mobile applications, cloud-based online paper filing systems, etc.
There is a variety of factors that determine the value of a business and digitization can significantly increase that value. It makes the company more relevant given the current state of society, in that digital media has firmly integrated itself into our lives. In terms of selling a business, it’s safe to assume that buyers are most likely to choose a company that has a strong digital presence. For that reason, digitizing a business is in a way similar to renovating a house before putting it up for sale. Although it takes some effort, the chances of selling increase tremendously.
2. Aids in attracting a wider range of customers
One of the major upsides of digitization is that it basically puts the company on the map in the digital world. Bringing the business onto the internet, be that by creating an appealing, modern website or a mobile application, makes it more easily discoverable. Furthermore, the range of customers the company attracts widens, as there are no geographical constraints.
Thus, digitization can make a business bloom. It not only makes the company more visible to a global audience but it also opens the door to a wide range of communication channels, from simple emails to social media, making the company more easily accessible.
3. Makes it easier to build a reputation
Without a doubt, building a good reputation is necessary for a company to thrive. Indeed, clients that had a pleasant experience with a company may spread the word. However, as previously mentioned, the internet enables their voices to be heard long distances. Although they can open discussions digitally without the company having an online presence, they are more likely to do so if they have a space where they are asked to leave reviews. An array of positive reviews is bound to gain the trust and interest of potential new clients.
Additionally, having a digital presence gives a company a sense of a high level of professionalism. However, it’s completely understandable if you find this endeavor too complex and overwhelming, especially if you’re not too keen on technology and digital media. Luckily, you don’t have to embark on your journey to digitization alone. There are companies that offer digital transformation services that can lead you in the right direction and help you every step of the way. Thus, you can employ the reliable technology consulting and development company, for example, like HTEC Group, and receive valuable advice on how to combine business with technology, as well as the complete design and development of digitized products.
4. Improves the customer service efficiency
There is no denying that the quality of customer service plays a huge role in a company’s prosperity and reputation. After all, it’s the consumers who help keep the business afloat, so it’s a given that they deserve an appropriate service. A company should be able to retain customers; not just focus on constantly acquiring new ones. What is more, satisfied customers are likely to make referrals to friends and family. Digitization makes customer support more easily reachable, as they can ask questions directly on the website.
However, the more clients a company has, the less time the customer service providers have for each individual. This is where a new, Artificial Intelligence (AI)- powered solution comes in handy, in the form of conversational agents, also known as chatbots. Chatbots are computer programs that can carry out basic text conversations and answer questions. This is a fresh and economical way to carry out the initial interaction with potential clientele. They can handle the task of informing the client about the basic features of the service. Although customers could read such information on a flyer or billboard, this method is more convenient as it gives the user the option to cherry-pick the information on which they wish to make inquiries. Moreover, this approach is more personal, as they are being addressed directly. It should be noted, however, that they are in no way meant to replace human customer service agents, and are only there to help direct the customers and introduce them to the service.
5. Simplifies data analysis
Conducting periodical data analyses is basically a requisite for companies that aim to stay relevant and find a way to cater to the needs of their targeted clientele. Digital data is immensely simpler to analyze since most of the work can be performed by a computer. Thus, more advanced data analyses can be carried out.
These performance reviews are essential for the company to be able to adapt to the expectations of the market that keep changing exponentially. In addition to that, advanced data analytics and sales dashboards can provide an insight into the preferences of the consumers, which is extremely valuable information, as it enables the company to adapt to the clients’ specific needs and desires.
6. Increases income and enables cost reduction
The central theme of most of the above-mentioned factors revolves around increasing the popularity of the company. For that reason, it’s safe to say that digitization can help a business bring in more revenue, and thus maintain financial stability. Indeed, digital transformation comes with certain costs, such as paying for a web hosting service for the website. However, the income generated is more than likely to exceed these expenses, thus securing a profit.
Not only that but modernizing a business in this way also leads to cost reduction. It minimizes the chances of making errors, which can result in additional costs. That is not all. Benefits are numerous, as automation of certain tasks, such as in the case of chatbots, means that less personnel is required, while virtual paper filing eliminates the costs of printing, and so on.
All in all, it is quite evident that digital transformation plays a salient role in attempts to run a successful business and stay relevant in the modern world. Not only does it speed up certain processes, such as data management, but it also improves the company’s visibility, as well as its attractiveness in the eyes of the clients. Therefore, in order to adapt to the digital age and increase a company’s value, digital transformation is well worth considering.