The COVID-19 pandemic has been quite a challenging situation for everyone. People and businesses had to go through unprecedented conditions all over the world. With lockdown in place, many businesses had to shut down due to losses. It made most businesses realize the importance of digitalization. Digital transformation was seen as the only way to overcome the challenge. According to a survey conducted by the European Development Bank, the COVID-19 pandemic has expedited the digital transformation.
It is bringing together all digital technologies to transform non-digital and traditional business processes into a new business model. Moreover, it helps businesses to evolve and progress.
Due to the digital revolution, the landscape of companies has changed. It requires businesses to introduce the latest technologies. like Information & technology, Artificial Intelligence, Internet of Things, Cloud and Blockchain, to grow. It has also increased the use of digital payment systems like Zaakpay to help customers adapt to this change. Today, businesses are required to be more conscious about the latest technologies to sustain in the market, especially if it is an Ecommerce platform as it will require a secure digital payment solutions provider like Zaakpay. With Zaakpay online payment solutions, small, medium and large businesses can simplify their online payment process anytime, anywhere.
Benefits and Challenges Associated with Digital Transformation of Businesses
Benefits
- The most important benefit of digital transformation is enhanced collection, storage, and analysis of user data. It helps companies convert raw data into useful insight.
- The process helps to enhance the customer experience. Improving customer experience is an essential part of all businesses. Digitalization helps businesses achieve the objective since customer and business interaction becomes more flexible. Zaakpay, one of the best digital payment system, provides a better experience to customers in online payment with smooth and fast onboarding for the merchants.
- Additional benefits like online shopping, AI-assisted chatbots, customer preference products, and valuable customer insights helps companies transform digitally.
- Digital transformation has helped companies boost efficiency and profitability. Reports showed 80% of companies that have fully transformed digitally showed increased profits.
Challenges
- The biggest challenge to overcome is the lack of skills. Digital transformation requires continuous up-gradation of skills. A recent survey showed, 54% of the companies reported shortages in skills which was slowing their business transformation.
- With the technological developments, customer demands and competitions have also changed accordingly. Therefore, businesses that transform digitally require adapting their methods to provide the needed services.
- Financial constraints need to be properly addressed. Digital transformation requires a lot of investment which may be difficult for companies to invest in. Therefore, it requires a proper budgeting strategy to achieve the company’s long-term goal which includes digital marketing, online payments services, etc.
Common Mistakes Companies Make While Going Digital
Digital transformation must be implemented properly for the successful implementation of business policy. There are some common mistakes companies make when going digital. Take a look:
1. Starting without a predetermined goal: This is a common mistake a company makes while transforming into a digital company. The transformation of a business not just requires digital change but an overall change to support such a transformation. Hence, every company must have a predefined goal to support digitization. Many businesses face stiff competition and non-sustainability due to a lack of clearly defined goals. Narrowing down the purpose of digital transformation will help the businesses have an outlook towards its functions and operations as it specifies the target audience, stakeholders, and competitors of the business due to digital transformation.
2. Poor planning and execution: A successful implementation of ideas always requires proper planning, which is an essential part of the implementation. Transforming a business is a tedious process that requires a detailed strategy and execution. Many businesses have shut down their operations due to a lack of proper planning and poor implementation. Businesses are needed to be in constant touch with the changing environment and plan accordingly. Business transformation is a long passage that requires a commitment to getting the desired results. But the problem of unexpected delays must be addressed cautiously by the businesses.
3. Assuming transformation as a one-time project: Businesses often presume digital transformation as a one-time investment that makes it difficult to progress. Transforming a business from traditional to digital might look like a one-time and short process, but it is a long-term and continuous process. The meaning of digitalization is constantly changing. Digital payment industries are at the forefront of this change. Today, payments are being made using cryptocurrencies and digital currencies that have transformed from debit/ credit card payments. Innovation and implementation are required in the whole journey of digital transformation of the companies & it is an endless journey that requires to be at pace with technological development.
4. Underestimating the digital change: Many companies tend to make a mistake by underestimating the change that is taking place in the business ecosystem. Change is an integral part of the business which must be accepted and prepared. Preparation involves constant training and upgrading skills to its employees, more investments towards the new technology, and an adaptive mindset. Businesses must make sure the work culture is suitable for digital change. It requires the usage of tools and applications that require for this change and also a suitable online payment system.
5. Failing to include employees in the process: Employees are considered to be the backbone of a company and are an essential part of a successful business. Neglecting them in the transformation process will be a mistake and could cost the company dearly. All stakeholders of a business need to be considered cautiously and given precedence. Unfortunately, many companies consider technology as the only strategic factor and neglect other factors. Employees are most important because efficient and effective use of technology requires well-trained employees to get the desired results.
The transformation of a company digitally is a mammoth task and requires careful implementation and execution. It should have a strategy for a marathon rather than a sprint. It may have frequent changes, losses, and other uncertain events which should be anticipated and be prepared. It requires a heavy investment of time and effort to transform successfully. The COVID-19 pandemic has shown the world how unpredictable our future will be and the impacts it will bring along. Though it has accelerated the digital transformation, there might be more challenges in the future. Above all, the digital transformation of businesses requires its customers to accept the change. The increased usage of online payment systems like Zaakpay has shown the adaptiveness of customers to suit the changes. Companies must make sure these mistakes are addressed properly before implementing the change.
Hence, A company should not only take care of choosing a reliable online payments service but also check the measures the service provider takes for fraud protection.
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