In our last blog post for the year 2020, we had mentioned the top 20 digital transformation statistics of the year. Among all the statistics we mentioned, one particularly stood out; 9% of companies plan to cut investments because of the pandemic, and 52% plan to make those cuts in digital transformation.
Digital transformation experts recognize that these are alarming numbers, knowing that the other side of investments is actually to pay the price.
While companies and corporations may think that investing in digital transformation strategies is costly, the financial losses cost by not going digital can cost even more, especially considering how the world is now shifting towards remote work. Corporations need to look beyond imminent results and focus more on long-term gain and company sustainability as today’s digital transformation is no longer an option but a necessity.
Top 10 Reasons Why Not Investing in Digital Transformation Strategies Costs More Than Investing.
Lower Corporate Productivity:
Digitalization is known to boost workplace efficiency as employees finish their work up to 5 times faster than in traditional workplaces. Using software and digital solutions help employees finish administrative tasks faster and attend to different and more creative duties. If a company doesn’t invest in digital tools, productivity levels across the company will drop.
Digital campaigns or increasing the reach of a business by using digital solutions that foster insightful analytics can be done with ease and can get tailored according to the company’s needs and budget. Even advertising a company can be more easily done with all the data gathered. Not to mention the increased cost of papers, offices, archiving, and so on.
Lack of Company Growth:
While over 70% of companies are setting digital transformation strategies and investing in their growth, companies opting not to invest in these strategies will surely fall behind. Corporations who adopt solutions early on have a growth advantage compared to their more traditional competitors.
Loss of Competitive Advantage:
Digitalization helps corporations cater to their customers’ needs and desired experiences. When companies do not digitalize and personalize their interfaces, clients and customers may search for better services and become loyal to their competitors.
Loss of Sales and Revenue:
Digital transformation transforms businesses and operations. By digitalizing and turning to workflow automation, companies can increase their outputs and performance while simplifying processes. That goes to say that when companies do not undertake digital transformations, they decrease their work output or results. This decrease, in turn, affects their sales reach and eventually their revenue.
Loss of Relevance and Market Share:
If companies are not winning, they are losing; similarly, if companies are not growing, they shrink in market shares. Digitalization has become a need for both corporations and clients. When companies choose not to adapt to customer needs and invest in digital transformations, it costs them market shares; when companies lose market shares, they become less relevant to both customers and their industries.
Lack of Valuable Data and Key-Analytics:
Brand loyalty has changed over the years. Companies now need to double-down on their efforts to understand their consumers and rebuild their brand loyalty. Data generated through digitalized tools allow corporations to tailor content and learn about their customers’ needs. Most importantly, it guides companies on what works and what doesn’t, saving them from costly errors.
Lack of Employee Retention:
The workforce is now widely composed of millennials – a generation that has grown around technology and digitalized services. Digitalized platforms have become an expectation, both for them as users and as employees choosing where to invest their skills and talents. Millennials search for companies that resemble them, and they come with a surplus of digital skills that would be a loss if not used for the development of a corporation.
Lack of Ability to Social Sell:
When corporations undertake digitalization initiatives, they gain relevant and insightful analytical data and information concerning their clients and prospects. One of the sources for such data is through social selling. Social selling is when a corporation uses its social network presence to get insight, find prospects, strengthen its relationship with the community, and so on.
Impersonalized Customer Experience:
Over 80% of companies compete solemnly on the basis of customer experience. This is defined by how much customers feel involved with the company, how much they feel that it represents them. The more the company speaks the customers’ language, the more it is able to create a better customer experience for them and retain them.
The Real Cost of Not Investing
So, what is the real cost of investing in digital transformations? Priceless.
What is the real cost of not investing in digital transformations? Paying the price.
Investing in digital transformation strategies may cost companies at first, but the revenue will slowly start to roll when digitalization becomes a part of the company culture, which is only attainable when done right.
A company not investing in such transformations will pay the price by falling behind competitors, losing market shares and relevance, and failing to adapt and grow.
Undergoing a proper digital transformation strategy requires a knowledgeable partner to really help the investment come to profit.
If your corporation wants to undergo such transformations, contact us, or check our many services and solutions that are at your disposal.
Remember, cutting on digital transformation budgets means cutting down on opportunities.