How Digital Transformation Technology leverages Analytics For Creating New Business Opportunities

Digital transformation is essentially the adoption of new digital technologies to either replace manual or non-digital methods with digital methods or otherwise replacing earlier digital technologies with more advanced digital technologies. These include telecommunications technology, retail industries, IT and software sectors among others. Digital transformation has been made possible because of the advancement in information technology. With information technology is becoming an essential part of our lives and businesses, it is only wise to transform one of the most important aspects of your business that is your business process. This transformation will be more effective and faster to implement than any other method of business process re-engineering.

In order for you to know about digital transformation, you must first understand the importance of customer insight. Customer insight is defined as the ability to understand the needs and requirements of your customers and what would compel them to choose your product over that of other similar products in the market. It is considered one of the most important aspects of digital transformation. This insight is made possible through online customer experience management systems and data collection that are based on comprehensive surveys and interviews.

Most of the time, businesses do not focus much on developing customer experience and most especially in making sure that this develops in all departments. Often, these departments are not given the necessary priority in the business. However, it should not be the case. Businesses should ensure that all departments are involved in digital transformation so as to create real value creation. Below are some of the key areas in every organization that should be given due consideration in digital technologies:

Sales and Service: Customer data and digital technologies are interrelated in every aspect of a business. From the point of view of sales and service, two of the most important factors that influence decisions are customer satisfaction and the level of digitization of the company’s processes and products. Without satisfied customers, no sales and no service can be successful. Likewise, without a high level of digitization, a company’s products and processes will never achieve perfection. To make sure that both are given due attention, sales and service departments should be integrated in digital transformation strategies.

Analytics and Data Collection: Digital transformation can never be successful without the collection and analysis of customer and consumer data. This allows business owners to gain insight on the activities of customers and understand what drives them to purchase a particular product or service. This also enables them to better serve their customers and to determine areas where they need to improve and strengthen their offerings to their clients. Great examples of analytics and data collection technologies include BSCs, KPIs, CRM, MRP and OCT.

Finance and Accounting: All companies face financing and accounting challenges. The success of any company depends heavily on the financial metrics of that company. In order to gather and analyze the various financial metrics of a company, various digital tools and analytics are used. They include regression analysis, trend analysis, forecasting, optimization, metrics, decision trees and neural networks among others. Again, these techniques are often used alongside traditional data analysis.

Customer Insight and Decision Making: Digital tools and analytics not only allow for improved decision making capabilities, but they also allow users to get in touch with their customers. Many customers today access a plethora of information about products and services on the Internet, including reviews, recommendations and ratings. By monitoring customer interactions with digital transformation solutions and analytics, a business owner can gain insight into how its customers make decisions. Great examples of analytics and decision making technologies include customer satisfaction surveys, survey questionnaires on various aspects of a company’s product or service offerings, as well as customer loyalty programs.

Digital insight and data capture technologies such as MRP and BSC are vital for improving the customer experience. For example, MRP involves gathering and analyzing customer information, segmenting it according to factors such as product category, price, age and location. The resulting metrics then help an organization to understand its customers better and design a better solution for them. Similarly, BSC allows businesses to obtain insightful insights that improve its customer experience. This includes conducting advanced statistical analyses on trends in customer behavior, usage of various digital tools and their interactions with the organization, as well as other analytic queries.

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