Digital transformation is no longer an option; it’s a necessity – especially for global companies.
Understanding how digital transformation has changed companies both culturally and technologically is allowing business leaders to reevaluate their current processes and implement more digital and virtual operations across HR, product development, marketing, sales, and customer experience.
Here are four things that digital transformation has forever changed about the way companies operate.
1. Recruiting and hiring
Virtual work is one of the most important and all-encompassing paradigm shifts brought on by the global pandemic. Businesses were forced to change how they source, interview, hire, and onboard new employees.
[ Related read: Digital transformation: 3 ways it changes companies. ]
One instrumental change was companies’ reliance on virtual hiring and the ability to interview and recruit candidates from around the globe. Virtual recruitment has enabled companies to build more diverse workforces, tap into a larger talent pool, and consider the best available candidates rather than only those in their immediate locations. Just as virtual work has boosted the talent pool, digital transformation and the innovation it brings have heightened the demand and competition for developers, data scientists, and other tech talent.
The hiring process has also evolved as companies now have a better ability to assess candidates’ skills. While platforms for virtual assessments existed before the pandemic, many companies that provide these tools have enhanced their technologies to create programming that provides the best possible experience for candidates and employers. The trend of conducting skills assessments virtually during the hiring process is growing.
2. Employee experience
The pandemic pushed many companies to embrace hybrid and remote work, and many employees continue to work remotely. Digital transformation was both a result of and a catalyst for this change as it enabled employees to seamlessly transition to working from home. Digital transformation has provided innovative and essential new technologies, from videoconferencing software that replaced legacy platforms to cloud services that enable access to information and materials from anywhere.
Remote work has also changed how companies deal with and manage cybersecurity. With employees using different devices (often personal devices) and working from home wi-fi connections, companies have had to consider new vulnerabilities and strategies.
Finally, digital transformation has improved the employee experience by allowing employees to enjoy work flexibility. No longer forced to commute, team members can work from the comfort and convenience of their homes or any other location. This new model has also changed how employees interact with one another and altered how companies hire as they consider the preference for flexible work environments.
[ Read also: Using automation to improve employee experience ]
3. Customer experience
Companies that implement digital technologies into their business models offer customers more personalized experiences, perhaps through a web experience, a mobile app, or any digital touchpoint. Digital payment options have increased rapidly, for example, with contactless and digital wallets enabling customers to pay for goods and services without cash or even swiping a credit card. Digital banking apps enable customers to conduct any kind of transaction, from depositing checks to applying for a loan. Last-mile delivery for grocery items has changed the way consumers shop, and advanced digital technology empowers companies to provide 1:1 personalization with their marketing campaigns.
According to Voxco, company growth and revenue increase 10-15 percent when companies integrate digital transformation into customer experiences. Not only does digital transformation help provide superior customer experiences, but it contributes heavily to company growth and profitability.
Finally, company processes and workflows have changed dramatically over the past few years thanks to digital transformation. Legacy processes that were formerly done using pen and paper or a spreadsheet are being completely replaced with digital tools used by everyone from large manufacturers to sole-proprietor businesses.
Low-code and no-code software make it easy for non-technical employees to create and customize digital workflows from scratch. Workflow process automation has removed barriers, improving communication between marketing and IT teams. As companies embrace digital workflows, they are able to provide better customer experiences, which in turn boosts loyalty and customer lifetime value.
Digital transformation enables changes that play a crucial role in business success, and companies that fail to embrace digital will fall behind competitors and lose customers. From improving the customer experience, boosting employee engagement, and making internal processes more efficient, the benefits of digital transformation will continue to evolve as Web3 technologies come to market and change how companies do business in today’s on-demand economy.
[ Discover how priorities are changing. Get the Harvard Business Review Analytic Services report: Maintaining momentum on digital transformation. ]