“Digital transformation” has been the year’s buzzword, and it is easy to see why. If you somehow haven’t heard of digital transformation, we’re here to fill in the blanks. Digital transformation is adopting technology at a macro scale within your business, shaping workflows for all employees through innovation. This isn’t just implementing a new tool or two; it is a complete modernization that impacts your organization from C-Suite to entry-level. When starting your digital transformation process, there are many factors to consider. One of the most important for director-level employees is how this will affect financial growth. Here, our digital transformation specialists at SCLogic discuss how you can bridge the value gap with digital transformation, making a short-term investment that will carry your company into the future of the modern workforce.
Leveraging Analytics for Early Returns
When it comes to investing in a new platform or strategy, we get it, taking those first steps is usually tricky, and preparing your budget can be daunting. Often, smaller businesses are hesitant to invest in digital transformation tools because they feel they aren’t large enough to need them, but this could not be farther from the truth. Every business, no matter its size, can benefit from digital transformation tools. We want to tell you how to leverage the value gap as quickly as possible.
Implementation can be costly, but digital transformation tools provide businesses with a competitive advantage out of the gate. How? Through analytics, of course. Traditionally, data is siloed among multiple point solutions and cannot connect with one another. This makes it challenging to find patterns and trends within the data from the big picture. Additionally, data quality issues and customer data can provide a strong base for identifying what data is relevant and what exactly your customers are looking for.
So how does data connect to returns? According to a study by McKinsey, more than 1,000 investors found that companies leveraging analytics had a 5.3% gain in return-on-investment capital (ROIC) than those that did not. Once you have clear KPIs in mind to measure, analytics tools can be a fantastic addition to your digital toolkit. Thankfully, our logistics software, Intra, offers a configurable analytics dashboard to help facilities management teams gain a comprehensive overview of their operation.
Increased Productivity Leads to Revenue Generation
One of the most significant ways to bridge the value gap for digital transformation is to identify how these tools will impact company productivity. The MIT Center for Information Systems Research (CISR) found that companies who complete their digital transformation process see margins 16% higher than the industry average, and an ROI of around 17%, increasing productivity by about 11%. Digital transformation helps productivity in the workplace by enhancing collaboration and project management opportunities, creating a culture of innovation within the workplace.
While revenue generation is a continued goal, looking at digital transformation from an employee-first perspective is essential. Instead of identifying value gaps in numeric terms, try identifying how these tools can support employees, in turn supporting revenue generation. In a recent survey conducted by Zensar, 53% of surveyed employees said that they would be empowered to manage workflows better if they had the correct tools, 42% said that these tools would not just expedite tasks but boost morale, with close to 40% saying that focusing on employee empowerment through digital tools would allow the company itself to change faster. As a result, you will continue to close the value gap and improve revenue generation by investing in your employees.
Directors Can Improve Valuation & Skyrocket Growth
Let’s face it; the past few years have been a rollercoaster for almost every business. Thankfully, as business continues to return to normal, companies are leveraging their assets, and directors are considering decisions for growth. If you are considering a merger, acquisition, or sale, digital transformation is vital for bridging the value gap of your business. According to a Sloan Management Review of 2,000 companies in 2021, only 7% were considered “led by digitally competent teams,” yes, you heard that right, only 7%. However, digitally-led executive teams were seen to outperform their peers by close to 50% in terms of revenue and valuation.
These trends are not set to plateau but increase in coming years until the value gap is stretched to nearly unseen points. What does this mean? Here and now is the time for digital transformation. Organizations can become thought leaders in the digital transformation field, skyrocketing growth for their company by creating a competitive edge before others in the industry modernize their workforce. According to BCG, 2019-2022 saw a value advantage of 22% for digitally advanced companies, and if this trend continues, that value gap will triple to a 66-point margin by 2025. By aligning the C-Suite and showcasing digital leadership within your organization, this will trickle down into each department, fostering a culture of innovation that promotes digital growth from every angle.
Begin Your Digital Transformation Process with SCLogic
At SCLogic, digital transformation is integral to our business. With over twenty-five years of experience in the logistics industry, we have seen constant changes and growth in technology. With the ever-increasing digital world, we continue to remain innovative. Our in-building logistics software, Intra, provides a comprehensive solution for facilities directors to manage every aspect of their operation through a data-led, secure interface. Intra is fueled by integrations, collaboration, and user experience, unlike any platform you’ve experienced. Don’t believe us? Try it for yourself. To learn more about how we can guide your facility through digital transformation, email [email protected] or schedule a demo with one of our team members today.