By now, Digital Transformation is being talked about everywhere, but some have not yet delved into the concept; those who confuse it with a process or software; those who would like to embark on this journey but don’t know where to start. In this article, we’ll look at the main motivation for Digital Transformation and what drives companies to undertake a digital change that is as radical as it is essential to keep up with the competition.
The first answer that comes to mind when evaluating the investments that need to be made for a digital change is to comply with regulatory requirements. If there’s no obligation, I may as well put it off. However, the infographic shows that the legislative motivation is a smaller percentage than the real incentive: improving Customer Satisfaction.
Another question: Why do I need to make such an expensive investment if my customers are already satisfied? Because, in the long term, innovation not only serves to ensure the renewal of the trust of current customers but also opens up potential scenarios that could generate exponential growth.
But let’s go step by step. A slice of the market also does so for a legal reason. In fact, among funds, benefits and regulations, it can be convenient for a company to invest in digital innovation.
Facilities are especially appealing to large companies, with departments dedicated to research and development, which can relay resources on a hypothetical innovative project. On the other hand, small and medium-sized companies are often forced to digitalize processes or actions to comply with regulatory requirements. One example? Italian government required a transition to e-invoicing in 2019. All companies had to adhere to the change to issuing an invoice within the timeframe established by law. In this case, the law was the determining lever, but later on, companies understood the operational benefits as well.
In the case of digitalization aimed at regulatory compliance, the risk is that the change does not involve the entire firm but only the department or even the individual process involved. This kind of action not only appears inefficient but, in the long run, could even slow down the overall business organization instead of generating improvements.
The decision to acquire talent and technology to begin a business innovation process can also begin with the pressure of the allocated budget. Suppose that during the annual business planning process, targets were set that directly or indirectly include the costs of investing in technology and innovation.
