Innovation in technology is taking place all over the world. Technology is evolving like Darwin’s theory. There are digital transformation in every business due to which big and small business outlook is now available to broader audience. From the smallest of business to huge MNC’s business are taking this excellent opportunity of using technology and keeping up with the world. It not only increases efficiency but also increases the revenue. So what is digital transformation? It refers to the business tools or models using digital technology. It means rapid adaption to the technology. It also refers instead of using manual or non digital process we use digital methods and newer technology.
Innovation or extinction?
The best of digital business example is Amazon. It is not just a shopping platform but it has transformed the entire concept of shopping, packaging, booking and moving online. Digital wolrd has radically and exponentially changed. Consumer behaviour and expectations have changed. Mobile phones, tablets, laptops now dominate everything. From searching, surfing, mailing, browsing or buying. E-Commerce has grown upto 71% in US Itself. Let see the statistics:
67% of the millenials
56% of the Gen X
48% of Baby boomers
28 % of seniors are using online shopping platform instead of going shopping in stores. 55% of the buyers search for information on social media, while other 55% are using E-commerce platforms for shopping. (according to 2017 Forrester report)
Let take other example. Hasbro a toy making company was very innovative with its marketing strategy. In the year 2012, Hasbro made a decision that instead of focusing on kids, it should have marketing strategy for parents. People who actually are responsible for purchases of toys for their kids. The company marketed on large scale including social media. It created several marketing campaigns. This helped company to get the data such as consumer behaviour and understand its customers. It started digital storytelling and video content. Hasbro had to spend a huge amount on this. However it paid of well. The company increased it’s sales by $1 billion for the first time. In 2016. It hit $5 billion for the first time. The focus on digital transformation has helped Hasbro to increase its revenue.
Products, employees, competitors, operations and channels totally depend on technology. So we have to keep two things in mind:
A. Data is more easily accessible nowadays
B. Technology is and will keep evolving
Data is very useful when we talk about digitalization. And nowadays real time data that keeps on updating is very essential. Consumers, customers, supply chain and market keep on seeking for data that is available online and one that is easily accessible. It is very important for and critical for the growth of digitalization of business. Business should keep on doing new and innovative things. Do you wonder why small and medium enterprises have ability to compete with huge organisation? Only due to digitalization and new ideas in it.
Digital transformation depends on data and innovations protected by cyber security, analysis and applications. 55% of companies have digital strategy, 75% business executive say their company has digital strategy while 15% say they are capable of executing digital strategy.
Digitalization can cause increased profits as this includes enhanced productivity & efficacy. A process that was previously done manually before can be now done through digitalization. It gives business more of market penetration and develop into being more competent. It gives superior consumer experience. Digital transformation not only means updating technology. It means increasing revenue and shareholders. Stock prices can improve and revenue can increase if business invest strategically into digital transformation. Mail marketing, use of social media, use of advertisements and video content that emphasize value to customers have great impact in long run. From small enterprises to companies like Mircosoft, all have used digital transformation for increasing revenue and stocks. ( Microsoft itself introduced cloud based technology when it faced competition from giants like apple and Amazon, from $38 per share before the introduction of cloud to $136 after, digital transformation has proved that Microsoft is not digitally stagnant technology).
A long term dedication and commitment to digital transformation can pay a business with huge revenues and greater selling of stocks. It may have risks involved, but use and innovation of technology cannot be ignored even by the small enterprises if they have to survive in the market. The world today is demanding data and that too real time data from businesses. Every generation is keeping itself in touch with technology, in such scenario using of technology can be very useful for enhancing sales and revenue.