The era of digital transformation is not only upon us, it is already in full swing, accelerating at a fast pace and reimagining every aspect of our lives. The digital revolution is transforming the world in many aspects. Modern technologies are changing the way we interact, communicate, and consume products and services. Companies, irrespective of their size or industry, must be prepared to meet their new customers’ needs and demands. Technology and digitization have opened new possibilities to improve their production processes, how to position themselves in the market and how to communicate with their customers and is a major source of profitability in businesses
Profitability can be managed much more closely and more widely across a business than ever before. This can be achieved by taking into consideration ALL the inputs that make your company profitable. Finding the sweet spot between the orders in your pipeline and what you will have to spend to produce those orders profitably can be made much easier by digitally managing the planning and order inputs, resources/waste, and production assets.
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Here are 5 ways digitization can help your company make profits-
1. Increase productivity
Business digitization allows you to better evaluate all production processes, analyze intensely each step and identify problems and challenges accurately. The digitization of documents provides a lot of time and space to give to the optimization of resources and streamlining of production.
2. Customer order management
Digitizing Customer Orders and managing them digitally can enhance profitability in your business. This will ensure that you don't miss any order or if there is any loophole in any system or if any employee is not working efficiently. Converging all operations work through a digital platform will give you the ability to intelligently put information into a context that can drive insights. Thus you'll be able to make the right decisions regarding your business. It will help you provide speedy customer service by giving you the visibility you need to promptly answer customer queries regarding when their orders will be produced and shipped, and at what price.
Digitization also will mean a lean inventory management system. Thus you'll have an accurate knowledge of raw material and finished goods availability. The order also will have accurate information regarding- like the terms & conditions, unit revenue, product details, quantities, and timing, etc.
3. Facilitate internal processes integration
Usually, in Indian SMEs there's no integration of work. Different teams are busy doing their work. When information from another department is needed the back and forth is a lot to handle. There's also a high chance of the data becoming error-prone because of this. Digitization allows business systematization and organizational development. This process increases consistency in work output because everyone doing the same job is following the same instructions. It also facilitates the alignment of objectives of the company, employees and customers.
4. Open new market possibilities
Businesses digitization also enables incursion into new markets. Before the rise of technologies, distances were an obstacle for business internalization; now all you need is a good digital communication strategy and have the right logistics to reach new markets. For example- A lot of businesses expanded their business through online E-Commerce platforms during the pandemic.
5. Knowledge Management
At the apps, analytics, and services layer, software for predictive modelling can have a real impact on the profitability of a business. Business intelligence (BI) combines business analytics, data mining, data visualization, data tools and infrastructure, and best practices to help organizations to make more data-driven decisions. In practice, you know you’ve got modern business intelligence when you have a comprehensive view of your organization’s data and use that data to drive change, eliminate inefficiencies, and quickly adapt to market or supply changes.
The digitization of an organization is not a goal, but a way to improve business management and increase productivity. Currently, digitization is not an option, but a necessity if you want your company to be successful and to drive profitability. Due to the continuous and fast technological transformation, the market has radically evolved. Consumers have changed their habits, needs, desires, ways of communicating and consuming. If you can not read and understand this new scenario, all the money spent on the best technology and applications won’t make a difference for your organization. An effective business digital transformation must be based on these three pillars: people, automated information management, intelligent digital communication.
How to get started?
A good point would be to carry out a thorough analysis of the processes of the company and see how technology could have a positive impact on them. TranZact has been helping SMEs take the first step towards digitization for over 3 years now. What's best is that the basic version of the platform is free forever. Sign up today to know more.