What is digital transformation?
Digital transformation is all about the transitioning of static document processes to a digital format, for use within internal systems, to streamline and improve business processes. By digitising paper based workflows, businesses and companies can improve processes and efficiencies.
"A data-driven company is an organization where every person who can use data to make better decisions, has access to the data they need when they need it.1"
As well as allowing for better business decisions, digital transformation reduces labour costs associated with manual data entry, internal document handling and archiving as well as minimising human error by automating manual processes. These improved processes lead to better quality customer service as well as business productivity.
Customers want and expect a quick, seamless digital experience; and thanks to digital transformation, Australian businesses can now deliver.
The race to embrace technology, or create a ‘point-of-difference’ through technology, have created customers that now expect every organisation to deliver products and services swiftly.
According to The McKinsey Global Institute (MGI) think tank2, customers expect to interact with businesses who deliver a seamless user experience. Which means their decision to become a repeat customer will be largely based on how well their interaction went.
“Customers want to log in to their online electricity account and see a real-time report of their consumption. They expect to buy a phone from their telecommunications provider and have it activated and set up immediately out of the box. They want bank loans to be preapproved or approved in minutes.”
“They expect all service providers to have automated access to all the data they provided earlier and not to ask the same questions over and over again."
“Intuitive interfaces, around-the-clock availability, real-time fulfilment, personalised treatment, global consistency, and zero errors—this is the world to which customers have become increasingly accustomed. It’s more than a superior user experience, however; when companies get it right, they can also offer more competitive prices because of lower costs, better operational controls, and less risk.”
To meet these high customer expectations, companies must accelerate the digitisation of their business processes, recommends McKinsey Global Institute. But to do so is more than just the perceived digitisation of business processes, they must reinvent the entire business process, including cutting the number of steps required, reducing the number of documents, developing automated decision making, and dealing with regulatory and fraud issues.
Digital transformation is the integration of digital technology into all areas of a business resulting in fundamental changes to how businesses operate and how they deliver value to customers.
Allowing for better business decisions, digital transformation reduces labour costs associated with manual data entry and human error by automating manual processes. These improved processes not only lead to improvements in customer service, but business productivity as well.