The chemical industry is functioning in a globalized and complex business environment. This new economic context makes it essential for chemical businesses to be open-minded and willing to change and adapt to the latest developments. What does this mean for the industry? It leads to digital transformation.
Digital transformation is a broad concept, but the essential idea is this: using digital technologies to transform your business, improve customer value and more effectively compete in an ever-changing world.
It is not surprising that digital transformation has become so important — after all, we are living in an age when most of us cannot go half an hour without checking our phones. This is especially true for younger generations that have grown up with technology. In fact, a recent survey found that 69% of Generation Z are frustrated with companies that do not use modern technology to communicate.
Meanwhile, the Internet of Things (IoT) has exploded and continues to grow exponentially. In 2016, Gartner predicted there would be 8.4 billion connected things in use worldwide; by 2020, the research firm predicted there would be approximately thirty-one billion connected things in use. Add this to the fact that social media and mobile technology allow us to instantly connect with people around the world, and its clear technology has changed our lives forever.
So why should businesses care? Because they need to adapt, or risk being left behind by more innovative competitors. If you want your company to stay ahead of the curve, then you need to start investing time and money into digital transformation as soon as possible.
There are many distinct reasons why digital transformation is important, but at its core, these advances allow businesses to do more with less. A digital-first organization can collect data on their customers and employees in real time, which allows them to make more informed decisions about the people they are serving.
Digital transformation also allows for greater collaboration between departments and employees, which leads to a stronger culture of support, creativity, and innovation. The ability of businesses to adapt to modern technology and take advantage of its benefits is key for staying competitive in today’s economy.
Digital transformation is important because it opens new opportunities for growth, increased productivity, and a better customer experience.
The benefits of digital transformation include:
Stronger resource management
Digital transformation also makes it easier for you to manage your resources more efficiently, allowing you to save time and money in the process.
Encourages digital culture
Digital transformation not only transforms processes but also changes the way people work together. This encourages collaboration — a key component of digital culture — as well as communication, which helps employees work together towards achieving organisational goals.
Increased profits
Making the switch to digital can help you increase revenues by attracting new customers and retaining existing ones. It can also drive down costs by improving efficiency, increasing productivity, and reducing human error (all of which will save valuable time).
Increased agility
With innovative technologies like automation, business intelligence software, cloud computing, and ecommerce platforms, businesses can react faster than ever to changing customer demands and market conditions alike. This means they can adapt more easily to unexpected challenges and changes in strategy without having to completely overhaul their processes or technology stack.
Improved productivity
Modern business owners have more tools than ever at their disposal for improving productivity both internally and externally. Customer relationship management (CRM) software, for example, simplifies collaboration between teams and makes it easy for them to track customer interactions across multiple channels — resulting in improved efficiency, accuracy, and productivity across the board.
Enhanced data collection
You have most likely heard the phrase “data is king” before. Collecting data on your customers helps you to better understand their preferences, needs and behaviours so that you can cater to them accordingly.
Digital transformation allows you to collect more data than ever before — which gives you better insight into what your customers want and how they behave — making it easier than ever before to meet their needs and expectations.
Data-driven customer insights
Organizations can use digital technologies to collect data from customers’ interactions with their products, mobile apps, websites, and social media sites. Using analytics tools, you can gain insights into who your customers are, what they need, what they want and how best to reach them. This information can be used to personalize the customer experience, improve customer relationships, and increase sales conversion rates.
An overall better customer experience
Digital Technologies make it easier for organizations to engage with customers through multiple channels including web self-service, email, social media, and mobile applications. They provide customers with a consistent experience across all these channels so that they do not have to explain their problem repeatedly or wait for days for a response.
Customers also expect a personalized experience that is as unique as their needs. Digital technologies allow companies to meet these expectations by delivering contextual experiences that are relevant and personalized.
With all the benefits that digital transformation offers, it is easy to see why so many businesses are choosing it as part of their business strategy.
Whether you are looking for ways to automate your business operations or simply enhance the way you conduct business, digital transformation can help you do just that. And with its ability to help drive productivity levels and enhance operational processes, it is easy to see why so many businesses are turning towards it.
Digital transformation is not a one-size-fits-all solution. However, that does not mean that it will not ever be applicable in each situation. All you need to do to use digital transformation to your advantage is to identify the places where technology and technology integration can positively impact your business, whether in operations or otherwise.
Then, identify the areas of your business that need the most help (by looking for pain points) and start by making improvements there first. After you have successfully implemented some digital transformation ideas from start to finish, then you can branch out and try some innovative approaches.
Digital transformation can be beneficial to businesses of all sizes. It may not be the right solution for every business, but it should be considered by companies who are looking to modernize their business models in the coming years.
In summary:
There is no denying that digital transformation is a highly beneficial phenomenon that a business needs to consider. The only question is whether your business is ready for it right now.
Many chemical companies have already begun the digital transformation journey, often spurred by industry standards and demands. Having analysed their needs, they have implemented ERP systems that place importance on data collection, clear roles and processes, logical technology decision-making.
By embracing digital transformation, every industry player can contribute to solving global challenges.
To discover how an ERP solution can kick start in your transformation journey, contact one of our digital experts.