The beginner’s guide to digital transformation
To someone who is not especially tech savvy or immersed in the corporate environment, the concept of ’digital transformation’ may not be saying much. Or at most, it may be severely misconstrued.
But what does it really refer to? What is it comprised of and what are the effects on the enterprise? Below we will elaborate on the benefits that digital transformation can have on your company.
What does it come down to?
First of all, let us establish what this concept really means – it appeared in 2011 and it was meant to improve performance for businesses, by means of technology.
Of course, any logical follow-up would be to question whether just by appealing to new technology you will change everything for your company. However, it is never that easy.
A digital transformation is huge – it is not limited to your employees only using mobile devices or storing their files in the cloud. This transformation does not only entail introducing new technologies to your business, but it can also replace some parts alltogether, in order to bring more global value.
It may not be that clear to some companies out there how this digital transformation looks and feels in their case, so here are a few guidelines that will help you get a clearer picture on how it works:
- Modernizing processes
- Modernizing operations
- Modernizing customer relationships.
Processes will undergo transformation
Some companies may have already ditched the dusty filing cabinets and huge stacks of paper and replaced them with email and smartphone communication. They still can’t say that they’ve experienced a true digital transformation.
Undergoing a digital transformation does not mean that you are doing the same things as you did before, but in a more modern way. For example, if you are now sending email-based purchase orders instead of as you used to do before, you are still a long shot from digital transformation.
Your processes need to go through a total transformation. This means that they won’t be the same as they used to be, but completely new. When it comes to EDI systems, information is automatically sent between trading partners.
This basically revolutionizes the way that employees spend their time – now they can focus on other high-value tasks, instead of performing tasks that are related to purchase orders.
Operations will undergo transformation
The same thing applies to operations, as well. Using cutting-edge technologies does not suffice and does not mean you have undergone digital transformation. What should happen is that you apply technological changes that will enable you to carry out your operations in a different way.
What would happen if your supplier does not have the item you requested in stock? Until now, this meant serious damage to the normal functioning of your operations. However, this is not the case anymore, since with EDI systems you can be notified when your order cannot be fulfilled as promised. Your supplier can indicate other possible suppliers that can ship your item, so that you can continue your business without any complications.
You can now bid adieu to bottlenecks, frustration and wasted time.
Customer experience will undergo transformation
Processes and operations are quite transparent and every time they are impacted in any way, you get to see what the results are. However, it is an entirely different story with customer experience, although it can be as important as all the other ones.
Digital transformation leaves no stone unturned – customers will have a different experience with your company once it has undergone such a transformation. This becomes pretty clear when EDI systems are involved.
When a business is EDI capable, all its processes are automated. Since all documents are transmitted automatically, this means that a tremendous amount of time is suddenly freed up to be used for more important tasks. What is more, the error percentage will drop because data won’t need to be rekeyed in. Ultimately, the best perk of all is the fact that everyone will want to work with someone who has EDI in place.
Your customers will never leave your business for a better one, as long as you won’t be affected, for example, by the fact that your supplier cannot fulfill an order. B2B clients are not the only ones to enjoy the effects of digital transformation – all customers get to benefit from this immense shift in your business. Needless to say, all industries are impacted in a positive and radical way. For example, the pharmaceutical and manufacturing industries obtain greater traceability, keeping the customers more at bay from health complications than ever.
Everything you would like to improve for your business, including a reduction of costs, an increase of speed and accuracy and an efficiency boost is possible with an EDI system.
The concept of digital transformation can seem frightening, but it is up to you to make the most out of it. It offers great advantages that you can leverage to best suit your company’s goals. If you want to find out more on how you can help your company grow, contact us now.
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