According to Statista article “Digital Transformation - Statistics and Facts,” in 2020 global spending on digital transformation reached 1.3 trillion U.S. dollars.1 That represents a 10.4% year-on-year growth – “a compromised yet still strong growth despite the economic recession caused by the coronavirus (COVID-19) pandemic,” the article stated. It went on to explain how the pandemic accelerated digital transformation.
Digital transformation is essential to the health of any organization. Companies that prioritize it give themselves a competitive edge. This is because it delivers incredible benefits. According to the Virtru Blog,2 a few benefits of digital transformation include:
- Enhanced data collection - Many organizations are not using the massive amounts of data they have, but digital transformation enhances data collection. “Digital transformation creates a system for gathering the right data and incorporating it fully for business intelligence at a higher level.”
- Stronger resource management - It’s critical that today’s organizations properly manage their resources. Per the Virtru Blog, enterprise businesses in 2020 used an average of 900 apps. “Digital transformation can integrate applications, databases, and software into a central repository for business intelligence.” By simplifying workflow and integrating apps, digital transformation promotes better management of resources.
- Data-driven customer insights - If your company can understand its customers’ needs, organizational leaders can optimize business results. “Using both structured data (personal customer information) and unstructured data, such as social media metrics, these insights can help drive business growth.”
- A better customer experience - Good customer experiences are a must for business success. Digital transformation helps to create great experiences for customers. “Consider how your digital transformation can not only unlock efficiencies for your teams, but also deliver more seamless, intuitive experiences for your customers.” The Virtru Blog said this could span email, user portals, digital products, and more.
- Improved collaboration - Digital transformation can strengthen collaboration and drive digital culture. According to the Virtru Blog, a digital culture shift promotes business sustainability. “It forces the upskilling and digital learning of team members to take advantage of the benefits of digital transformation.”
- Increased profits - Companies struggling financially post-COVID can really benefit from digital transformation. The Virtru Blog reported that organizations that embrace digital transformation improve efficiency and profitability. “80% of organizations that have completed digital transformation report increased profits. 85% say they have increased their market share. On average, leaders expect 23% higher revenue growth than competitors.”
- Increased agility - Do you want your company to become more agile? Digital transformation is the key to agility. “Borrowing from the world of software development, businesses can increase their agility with digital transformation to improve speed-to-market and adopt Continuous Improvement (CI) strategies.”
- Improved productivity - Companies that want to streamline workflow and boost productivity must prioritize digital transformation. “By automating many manual tasks and integrating data throughout the organization, (digital transformation) empowers team members to work more efficiently.”
According to McKinsey & Company, the pandemic has sped up the rate of digital transformation by several years.3 This means more companies are having to adopt and integrate new digital technologies, and are reaping the benefits of doing so. Organizations that fall behind with digital transformation put themselves at a disadvantage. Since digital transformation is necessary for favorable business outcomes, it’s important to know where your company stands with digital transformation and what it looks like for your organization.4
What is Digital Transformation and Why Should You Prioritize It?
Digital transformation was defined as “the integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers” by a contributor to The Enterprisers Project.5 The Statista article mentioned earlier defined digital transformation as “the integration of digital technologies in all areas of a business, improving current and creating new operation processes and delivering more value to customers.”6
A different Statista article, “Nominal GDP Driven by Digitally Transformed and Other Enterprises,” said digital transformation represents a cultural shift to more agile methods of doing business, powered by technologies like advanced analytics and AI.7 The article explained that by 2023, digitally transformed companies will likely be contributing to at least 50% of the global GDP.
What Will Digital Transformation Look Like for Your Company?
Digital transformation looks different for individual companies. What might it look like for your organization? Integrating new digital technologies into all areas of a business and fundamentally changing how it operates and delivers value to customers could mean adopting a new CRM that allows you to better track and personalize your customer experience. It may also look like sharpening employees’ product knowledge to improve customer service with a learning management system (LMS).
Regardless of how you begin to move toward digital transformation, corporations that are not actively modernizing and adopting new technologies will quickly fall behind competitors. Embracing digital transformation prevents this and helps companies reach their business goals. Digital transformation literally transforms businesses and helps them have a stronger impact.
There are many strategies for driving digital transformation. One is to implement an LMS. An LMS/online learning platform helps companies promote digital transformation from the inside out: through employee training.
3 Ways an LMS Supports Digital Transformation
Here are a few ways training delivered with an LMS supports digital transformation:
1) It imparts digital skills -- Acquisition of digital skills often precedes or coincides with digital transformation and helps sustain it. An LMS can deliver the technical skills employees need to support such a big change.
Employee training with an LMS is agile and efficient - two characteristics of digital transformation itself. An LMS can be used to distribute on-demand mobile learning, as well as eLearning courses that are more in-depth. Learning paths ensure individual learners fully grasp the digital literacy skills communicated through the online courses.
Start by using your LMS as a general training tool for essential business information, such as onboarding and mission statements. Later, add content as you continue your digital transformation. For example, as you adopt and leverage new digital technologies, such as a CRM or CMS, you can train employees on the new system using your LMS.
Many digitally transformed companies have moved beyond providing lengthy in-person training sessions. They know such training is inefficient and disengaging. Also, a lot of company leaders are opting for remote training due to the pandemic. Online learning is a more effective option for facilitating digital transformation and navigating COVID-19.
2) It can be easily altered -- Technology is constantly evolving, therefore companies should offer training that can be updated quickly to incorporate new technology, company policies, or goals.
Digitally transformed companies offer L&D programs that are fluid. An LMS is equipped with customization tools that allow for the creation of training programs that can be constantly reshaped, depending on what learners need at the moment.
An LMS also allows companies to personalize training based on where they’re at in their digital transformation. It can suit the needs of a company that is either beginning to embrace digital transformation or is fully transformed, with the system evolving alongside the company’s needs and digital maturity.
3) It is efficient - Operational efficiency is often a goal of digital transformation, and training is a vital aspect of business operations. Training can be made more efficient when it is included in an employee’s regular workflow. An LMS makes this possible by supporting experiential learning.
Experiential learning is on-the-job learning. This doesn’t just happen in the workplace. It can just as easily take place as a remote employee is going through their workday at home. On-the-job learning is often based on experiences, which is why it is also called “experiential learning.”
For example, an LMS gives employees quick access to training resources they need during the workday via mobile device. Also, administrators can design eLearning courses around an employee’s daily work tasks, which reinforces learning through experiences.
How Are You Supporting Digital Transformation Initiatives?
Your company might be digitized, but that doesn’t mean it is digitally transformed. Digitized companies often use technology in their workflows or to more efficiently store information, while digitally transformed companies leverage technology for specific business goals to improve performance and differentiate their brand in the market.
If you’re getting left behind technologically or out-performed by competitors, facilitating digital transformation with an LMS is a must. LMS features make it easy for you to not only train employees, but impart digital skills and teach staff to use technology strategically, to make a measurable business impact.
Learn more about how an LMS can help your company support digital transformation by requesting a free LMS demo of TOPYX.
- Virtru Blog. https://www.virtru.com/blog/8-benefits-digital-transformation/#:~:text=Why%20is%20Digital%20Transformation%20Important,to%20work%20together%20more%20effectively.
- McKinsey & Company. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever.
- ITPro. https://www.itpro.co.uk/strategy/29899/three-reasons-why-digital-transformation-is-essential-for-business-growth.
- The Enterprisers Project. https://enterprisersproject.com/what-is-digital-transformation.
- Statista. https://www.statista.com/statistics/1134766/nominal-gdp-driven-by-digitally-transformed-enterprises/.