Digital Transformation: A Catalyst for Growth
Today’s middle market companies have the ability for expansive growth. Those experiencing growth are more productive, efficient and secure than the past. They communicate better, react to customer needs faster and enjoy greater bottom-line savings than their competition.
How do they do it? By implementing digital transformation strategies into their everyday operations. And it’s a practice you can add to your own facility.
Whether you’re in manufacturing & distribution, industrial automation, or provide a service such as architecture & engineering, the next decade will separate businesses into two types — those that embraced digital transformation (and thrived) and those who did not. Here’s why you should consider digital transformation and the potential challenges you could encounter along the way.
Digital Transformation: An Imminent Step Forward for Business
The world is moving forward whether your business goes with it or not:
- Middle-market CFOs report that the pandemic accelerated digital transformation (39%) and opened new expansion opportunities for products or services (36%) and geographies (31%)
- The global digital transformation market is forecast to be worth 2.3 trillion U.S. dollars by 2023
- Digital transformation is expected to grow at a CAGR of 22.7% from 2019 to reach $3,294 billion by 2025
- 70% of 2018 survey respondents said their companies either have a digital transformation strategy in place or are working on one
- While 52% of companies plan to cut or defer investments because of COVID-19, just 9% plan to make those cuts in digital transformation
Investing in these related technologies and best practices could be the most impactful thing you do to ensure your business is here 10 years from now. No business exists in a vacuum and the sooner you and your team can accept digital as the next logical step of your strategic growth, the sooner you’ll reap the rewards.
Digital Transformation Challenges: People, Processes, Technology
A successful digital transformation can greatly benefit your business, but that doesn’t mean adding it is easy. It can be costly, complex and lengthy. The businesses most successful at capitalizing on the digital wave focus on overcoming three key challenges: People, Processes, and Technology.
- Get Your People Invested. People worry about what they don’t know. If possible, bring your team into the conversations about digital transformation. It’s an opportunity for the business to grow, add talent, develop new products and enter new markets. As you transform your business, meet regularly with staff to hear about what they like and what isn’t working. Digital transformation should lead to excitement, not fear.
- Bring Your Processes into the 21st Going digital includes assessing your processes for improvement and standardization which leads to greater digital advancement. Begin by investing in robotic process automation (RPA), big data, and cloud technology to adapt how your facility functions, how you measure KPIs, and where and how your information is stored. These additions can produce unheard-of ROI in only a few short years.
- Invest in the Right Technologies. Like any other facility changeover, the digital technology you add should fit into your overall operational strategy and investment capability. A holistic approach to digital transformation can organize your efforts, focus your growth and create reliable KPIs to track your facility progress.
Get Help with Your Digital Transformation
We counsel clients on multiple paths to the same goal — a sustainable, technology-driven future that keeps them competitive even as the world around them continues to change faster than ever. Our team of management consultants can help you get started.
Contact us today to learn how we can help optimize your company’s efficiency and enhance your performance. We’re ready to help you advance to the next level of global competitiveness.