Categories: Digital Marketingsoftware development

How Does Digital Transformation Lead To Cost-Cutting?

Did you know? Digital transformation of your business or brand leads to creating several processes that deliver big opportunities for robust and effective value-creation that is wider than just cost savings. However, reducing business costs has been a major challenge in the current landscape especially for big organizations owing to surmounting customer data and evolving customers.

According to the report published by Statista, between 2020 to 2023 the value of companies spending directly on the methods of digital transformation is projected to reach about $6.8 trillion.

Even 85% of business owners believe digital transformation into the business gives them the opportunity to gain a competitive advantage in the industry. This is even the biggest opportunity for SMEs because, in this age of digitalization, it is challenging to compete with top competitors.

If this figure isn’t a good reason to begin your digital transformation then continue reading our blog to find out how the power of digital technology can help you succeed.

Engage with your Customers Better

In the year 2020, Microsoft clearly stated that user experience will overtake price and product as the key element. Customers now demand the exact product that they think of and they expect affordable cost and superior experience from any device. Digital marketing companies can help you become a part of your digital transformation strategy.

Increased Agility

Digital transformation makes companies and popular brands agile when it comes to marketing. This enhances the improved delivery of the products/services, accelerates innovations, and brings a higher client retention rate. By hiring a skilled and expert digital marketer you can shed offload from your shoulders and make your digital transformation journey more efficient.

Empower your Employees

40% of IT companies are allowing employees to work remotely, and here businesses need to empower their employees and staff with the latest digital tools to work smartly. Tools like Microsoft Office 365, Trello, Asana, Slack are revolutionizing the workplace by increasing productivity on a daily basis even employees are collaborating easily through improved communication. By introducing digital technologies your employees are able to access email, documents, and other important files from any device regardless of the place and time.

Office 365 provides you professional services that tell potential customers that you’re serious about business and this state-of-the-art, user-friendly tool makes email and messaging services faster and this is the best way to set yourself unique from other companies.

Better Negotiation with Suppliers

Supply chain management is another reason to choose business digital transformation. This is expensive for some companies if they are not equipped with the right information about work orders, purchases, and other in-house operational costs. With digital technology, you can have an organized database of your suppliers and supply chains so that it’s easier to negotiate with national and international suppliers.

Increase your Operations

A recent report by McKinsey, if you want to meet the expectations of your customers, business owners must accelerate the digitization of their company processes because the use of advanced digital technologies and analytics can really help them boost productivity through slicker, smoother, and streamlined operations and it can cut the cost up to 90%.

By digitizing information-intensive processes, businesses can notice significant time savings that allow them to free up resources and focus on the other core objectives of the company or brand.

Drives Revenue

Through the above points, you might have understood the importance of digital transformation in a business. But investing in the latest technology and tools can bring a high return on investment by providing your customers the well-deserved value. You can hire a custom software development company to launch your own product that is capable of centralizing all the information from different areas and making it available in real-time for the rest of the company. It would be one of the best weapons to reduce costs with technology.

Enhanced Reliability and Reduced Risks

When we think from a technical point of view, the old methods of maintaining consumer data cannot be restored and it is not encrypted. This can make the work of cyber attackers easy. As you know, your organization will grow, the technology and processes need to change over time.

By upgrading to the best digital tools, you will see a lot of improved efficiency and effectiveness in your management approaches. On the other hand, opting for digital risk initiatives can reduce operating costs for risk activities by about 30 to 35 percent.

Improved Data Collection

Whether you have a small startup company or a big IT firm, you always want an easier data collection process. Upgraded Data management systems are now coming up with new windows for online businesses because they make it easier to collect and analyze customer data in order to make informed decisions. All your customer data can be securely added into a cloud-based system, which will help you save costs by 50% as compared to traditional data management systems.

Start your journey today!

Don’t wait for the right time to embark on your digital transformation journey. We hope this blog inspired you to think of new ways of working as a business owner.

If you are looking to find a trusted digital transformation company, you can get in touch with QUACITO. Since 2001 Quacito has been harnessing the power of digital technologies to offer several advantages to businesses of small, mid, and large size. Our team of website designers, mobile app developers, custom software developers, digital marketers can help you transform your business digitally by delivering a wide range of professional services.

Contact us now for further consultation!