5 reasons for businesses to undergo digital transformation
Digital transformation is now a vital step if you want to remain competitive. You know the status quo is no longer viable, but you feel that the only option is to invest in a new system. Centralized SAP and ERP systems can be costly solutions, and they take a lot of time to set up. Besides, they may be incompatible with your company’s existing systems.
But there are other options! Imagine being able to keep your current systems and make them compatible with your other systems through middleware. This allows you to offset the financial impact of your digital transformation and avoid a cumbersome implementation.
But why change your existing processes? Here are 5 arguments to support digital transformation.
5 factors critical to your digital transformation
- Coexistence of several systems
Most businesses bring in new systems to meet their changing needs as they grow. Over time, these businesses end up with a host of systems that are not always compatible with one another. The reality is that it’s not always possible to do away with legacy systems. In a survey of business leaders by PointSource, 84% of respondents claimed that their legacy systems are delaying their digital transformation.
Moreover, legacy systems were one of the top three barriers to digital transformation for businesses (based on a joint survey by Nimbus Ninety and Ensono, involving over 200 senior IT leaders in the UK). So compatibility between various systems is a key driver of change for businesses.
- Assurance of your data’s accuracy
Juggling a number of systems and processes can make accessing data and checking its accuracy more complicated. The amount of data companies have to manage continues to grow. IDC estimates that worldwide revenues for big data will grow to $203 billion by 2020.
Manipulating incorrect data could have severe financial repercussions on business. According to an M-Files report, 20% to 35% of operational costs are due to poor data quality. The report also reveals that incorrect data leads to a loss of $600 billion a year on the American market! Given the growth of this market, companies need to establish systems and processes to manage data and maintain its integrity.
- Automation of processes
Whether it’s to send invoices, encode delivery slips or file proofs of payment, manual processes are very time-consuming and costly to businesses. They are error-prone and documents can get misplaced. An IDC report shows that employees spend an average of 3.5 hours a week looking for a document without ever finding it. Each misfiled document can cost a company $125. Given that large companies lose about one document every 12 seconds, costs can easily climb!
So it’s not surprising that companies are looking more and more at automation. Again, statistics bear this out: in 2017, the business automation market around the globe was estimated at $6.6 billion. A good sign for the future!
- Digitization of communications
Customers expect a variety of multichannel communications. They want to get promotions by email, invoices in PDF format, hardcopy payment reminders, and so forth. It can become a real challenge for businesses to consolidate these communications, along with their design and mailing. Digitizing communications could be a good way to make them more efficient.
If we take a look at electronic billing, for example, Billentis reports that the global market was worth $3.6 billion in 2017. And this market is expected to reach $17.4 billion by 2024. Proof that the market is growing to meet users’ expectations!
- Savings in time and money
Manual processes are extremely expensive for businesses—and the repetitive tasks being done by their workers take a great deal of time. According to the American Productivity & Quality Center, 58% of invoices are still encoded manually in company systems. By switching to electronic billing, not only will you be able to save between 60% and 80% on total billing costs (Billentis), but you’ll shrink the time it takes your customers to pay. In digital format, the invoices will get to customers faster and will then be processed more quickly. Convincing figures favouring the digitization of accounts receivable.
If at least one of these five situations applies to you, Objectif Lune can help! We have customized solutions to guide you through your digital transformation, without interfering with your current systems and processes. Feel free to contact one of our advisors to learn more about our solutions!