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Increase Profit With Digitalization? Here’s The Explanation

Increase Profit With Digitalization? Here’s The Explanation

In this era of digital transformation, new technology has opened up opportunities for businesses and created new challenges. Today, advanced technology can be more easily accessed by a wider market. In the past, only large companies had access to the latest technological developments. Now, digital technology can be reached by businesses of all sizes and from various fields. Such accessibility enables a thriving digital culture to bring many advantages in all business functions. Studies show that 55% of companies that have adopted digital business strategies can increase their income by 34% compared to 38% of traditional companies, when they rely on digital-first strategies.


Digital transformation can improve cost efficiency and make your company always one step ahead of competitors. At present, collaboration between technology and business processes is no longer an option, but a MUST.

What is digital transformation?

Digital transformation is a comprehensive transformation of business activities, competencies, and business models to take advantage of digital technology opportunities or the coming new era. It’s about using digitalization to transform business units or to approach organizations to businesses. This concept marks deep thinking about how an organization uses technology and resources to change business processes and performance.

There are many operational benefits of digital transformation. Some of them are:

  1. Increased Efficiency

 When the manual process is replaced by digital version, the workflow becomes faster making the whole organization more efficient.


  1. Better Customer Experience

Customer satisfaction is fundamental for every organization and to improve it, managers need to measure and understand metrics that are directly related to this concept. The better level of customer satisfaction, the higher success rate of digital transformation for businesses.


  1. Decision Making Based on Information

When business owners have adequate and well-planned data, they can make decisions that lead to higher levels of success, brand suitability, and achievement of organizational goals. That is why information is very important for business success.


  1. Increase Profitability

Digital transformation can be measured by profit margins, or seen as investments. When profits increase, companies have more resources available to implement changes that can increase efficiency and productivity.


  1. Increased Market Penetration

With increased efficiency and better decision making, the market penetration process becomes more competent and this helps increase the customer base, customer satisfaction, and profits.

According to research, companies that utilize digital technology get higher revenues (plus 10% of the industry average), are more profitable (26% on the industry average. EBITDA & Net Margin earnings), increase their value proposition and increase operations by a difference 79 percent.


  1. Information for Optimizing Business Operations

Success does not depend on how much data you can collect but on how quickly you can analyze and act on that information. Digitalization can help you turn data into insights, optimize processes, and eliminate unneeded costs. Streamlining business operations and reducing operating costs will help you increase worker productivity and increase business harmony.


  1. Better Employee Relations

Another reference for implementing digital transformation is changing the behavior of the workforce. To attract and retain the best talent. companies must adapt to the new work environment. Employees can rely on technology to enable them to work with employees in the field in real time. Digital tools are very important to bridge the gap in an organization to enable effective communication and to improve teamwork.


  1. Creating Valuable Data

Many businesses have large amounts of data that have great potential to be used to reduce costs or improve customer experience. If you don’t have enough data; You need to think about how to use everything you have effectively to make the right decision. This is important because it has an effect on business profit margins, because from here you can develop strategies that drive corporate profits


Digital transformation is not an easy process. Each company needs to evaluate opportunities, requirements, and resources to prioritize their efforts to achieve achievable goals. You can contact us to ask in detail about technology in any field!

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