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Digital Transformation: What is It and What are Its Benefits

The digital age has arrived, and businesses stand to gain a lot by embracing technology. A business’s digital transformation is not limited to using spreadsheets but encompasses all aspects of a business, from management to customer engagement.

Is it time for your business to start your digital transformation? Let’s talk about what is digital transformation and why is it important for businesses in the Philippines.

What is Digital Transformation?

In the most general terms, digital transformation is the integration of digital technology into all aspects of business, thereby fundamentally changing how it operates and serves its customers.

It is worth noting that digital transformation goes beyond merely digitization or translating analog information into digital form. Rather digital transformation involves the integration of technological tools like software, cloud solutions, automation technology, and mobile apps into processes.

Digital transformation often requires employees to learn to use new software or platforms meant to help streamline processes. Since it includes the establishment of new practices, digital transformation often involves moving away from established business processes and shifting toward new practices with a more collaborative and experimental approach.

A business’s digital transformation may revolve around a problem or goal, such as reducing friction in processes, increasing productivity, or improving customer experience. Whatever their goal, businesses can gain a lot from starting their digital transformation.

Why is Digital Transformation Important?

Digital transformation is not just another one of the telecom industry trends. In a fast-paced digital world, businesses need to embrace digital transformation to thrive amidst an ocean of competitors, customer demands and expectations, and shifting markets.

Over the last decade, the world has seen a rapid evolution and adaptation of technology into almost every aspect of life. Businesses were not exempt as at least 20.8% of retail transactions are expected to be completed online and more companies have shifted to remote or hybrid setup.

These shifts require businesses of all sizes to incorporate technology in their operations to meet their customers’ needs. Digital transformation allows companies to gain a competitive advantage that would allow them to improve various aspects of their operations.

The Benefits of Digital Transformation in Businesses in the Philippines

Digital transformation is a must for businesses in the 21st century. Whether you’re a small business or a large corporation, you can benefit from these benefits of digital transformation.

simplify workflow

1. Simplify Workflow

Digital transformation can help streamline processes and collaboration between employees. Businesses can incorporate solutions like automation technology to streamline certain tasks like data collection, thereby allowing employees to focus on more value-adding tasks. These technological solutions help improve efficiency, productivity, and communications.

2. Enrich Customer Engagement

Customers nowadays expect businesses to have a digital presence, allowing them to learn about the company, purchase products or services online, or communicate with customer service. Digital transformation allows companies to deliver such services seamlessly.

Digital transformation can help businesses offer intuitive platforms for users and efficiently respond to customer queries or concerns. Omnichannel communication allows customers to reach your company in different channels, such as via traditional phone or chat. By embracing digitalization, companies can build stronger relationships with clients while saving resources.  

Furthermore, by embracing digital transformation, businesses inevitably implement cybersecurity best practices to protect their and their customers’ data. Businesses can boost customer trust by showing that they comply with data protection standards.

typing in laptop

3. Improve Team Collaboration

Team collaboration is founded on strong communication between employees. In a remote or hybrid workplace, technology is vital in establishing strong communication between teams.

Through digital transformation, companies incorporate the use of various online communication channels like Zoom, Slack, or Microsoft Teams. These platforms allow seamless collaboration between employees because they allow communication, file sharing, and collaborative work.

With seamless platforms for communication and collaboration, businesses can establish a culture of collaboration, which can drive innovation and productivity.

4. Data-Driven Decision-Making

The early days of digitization companies collected mountains of data from customers that ended up not being maximized.

Digital transformation allows businesses to create a system for gathering and analyzing data so they can collect the right data and use it to drive business growth.


5. Better Resource Management

The importance of digital transformation encompasses all aspects of a business, including resource management. Digital transformation can provide the tools necessary to help companies achieve the most efficient allocation of resources for the greatest organizational value.

Digital transformation can give companies access to their data so they can choose the right tools, integrate applications and software, and plan finances or time. Doing so helps eliminate redundant vendors, thereby reducing costs and improving employee efficiency by removing the need to switch between platforms for different functions.

6. Increased Scalability

By helping streamline business processes, improve accuracy, and increase efficiency and productivity through technological solutions, digital transformation can empower businesses to scale up their operations faster.

Digital transformation empowers smoother collaboration, which can lead to more innovative ideas that can add value to customers. It can also help improve speed-to-market with more efficient allocation of resources and more efficient processes.

7. Enhanced Profitability

Companies that embrace their digital transformation see a growth in their profitability. Research showed that leaders in digital transformation grew their retail revenues by 0.8 percent and their active customer base by 0.5 percent between 2018 and 2022 while those who did not saw zero customer base growth and a 1.4 percent decline in retail revenues.  

This is the result of multiple factors, including strategic resource management, improved efficiency and productivity, and enhanced innovation. It all boils down to the value that companies can offer upon undergoing digital transformation. Clients see the difference in their products and services, which encourages them to patronize the business.

8. Improved Agility

An agile culture allows businesses to respond to any changes and challenges that arise through a combination of collaboration and efficient processes.

In a competitive market, agility is a must to survive, and this is why digital transformation is important for businesses. The integration of technology provides businesses with data and tools that enable them to respond efficiently to challenges.

Transform Your Business with Kital

Digital transformation can make a significant difference in a company’s culture and operations. It is important for entrepreneurs to know what is digital transformation in business and its benefits so they can appreciate its importance.

Kital offers a wide range of technological products and solutions that can help you get started on your business’s digital transformation. If you’re ready to start your digital transformation, leave us a message.

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