The business world constantly changes, and companies must be prepared for new challenges. One key trend that has significantly impacted businesses in recent years is digitalization. Digitalization enables companies to operate more efficiently, improve processes, and increase productivity. Our blog article will look at how digitalization can increase business efficiency and provide some statistics.
Automation and process optimization
Automation and process optimization are critical areas of digitalization and contribute to increasing company efficiency. Automation allows machines and software to perform repetitive and time-consuming tasks, allowing employees to focus more on strategic and creative activities.
According to a Gartner report, companies that adopt automated processes can reduce process completion times by an average of 25% and reduce labor requirements by 30-70%. Automation also minimizes the potential for human error, contributing to increased efficiency.
Data analytics and business intelligence
Digitalization enables companies to collect more data and use it more effectively to make business decisions. According to Adweek, 90% of companies believe that using the data they collect is essential to gain a competitive advantage. Analyzing data and applying business intelligence allows companies to identify problems impacting efficiency, solutions, trends, and opportunities.
According to a McKinsey study, companies that move to data-driven decision-making achieve, on average, 5-6% higher returns on capital investments. Data also enables companies to understand consumer needs and behavior better and thus tailor products and services more effectively.
Flexibility and teleworking
Digitalization allows companies to offer flexible working environments and teleworking opportunities for their employees. Teleworking allows employees to work flexible hours, minimizing travel time and increasing work-life harmony.
Research shows that teleworking can increase employee productivity by up to 22%. Companies also benefit from remote working as they can reduce the cost of office space and infrastructure.
Improving the customer experience
Digitalization enables companies to deliver a better customer experience, significantly increasing efficiency. According to the Adobe Digital Index, 73% of customers believe that experience is essential to their purchasing decisions. Digitalization can help companies deliver more personalized communications, faster and more convenient purchase processes, and better customer service.
Improving the customer experience generally increases customer loyalty and the number of returning customers. According to a Bain & Company study, returning customers spend 67% more than new customers. By improving the customer experience through digitalization, companies can increase the value of their customer base and generate long-term profits.
Flexible delivery and supply chains
Digitalization creates opportunities for companies to develop more flexible and efficient supply and delivery chains. The increasing amount of data that can be collected due to digitalization will allow companies to make more accurate demand and supply forecasts.
According to a Deloitte report, companies that have modernized their supply chains through digitalization have reduced costs by an average of 6% and increased efficiency by 15%. Digital technologies like IoT (Internet of Things) and artificial intelligence can help with real-time tracking and automated warehouse management, leading to optimized delivery and supply processes.
Summary
Digitalization offers significant benefits for companies that increase efficiency. Automation, data analytics, business intelligence, flexible working, improved customer experience, and flexible supply and delivery chains increase business efficiency. The research and statistics also demonstrate that companies should focus on digitalization to take advantage of technology’s opportunities and improve their efficiency to remain competitive.