Nowadays, digital transformation impacts companies across all industries. As the world becomes a more digital place, today’s businesses need to continuously transform their processes in order to maintain a competitive edge and adapt to ever-changing market trends.
Despite the significant opportunities that digital transformation creates, many businesses perceive it as an obstacle or a challenge. That is mostly because many employees and employers alike are still unsure about what it really means.
This article aims to explain the meaning and purpose of digital transformation and guide businesses in taking the first steps towards its successful implementation.
What is digital transformation?
Digital transformation is the integration of digital solutions into core business processes to increase efficiency and effectiveness. It helps businesses reduce tedious and time-consuming manual processes. As a result, companies can save valuable resources such as time and money while also delivering more value to their customers.
What drives digital transformation?
There are several factors accelerating digital transformation nowadays.
Technology is without question a key driver of transformation. It provides businesses with new opportunities to improve the way they work and gain competitive advantage.
However, technology alone is not enough - businesses also need a winning digital transformation strategy.
Contrary to popular belief, a successful digital strategy does not simply mean getting your hands on more technology - the secret actually lies in understanding and implementing those technological solutions that are relevant to your business and customers.
While modern technology is a fantastic tool that holds great potential, it really comes down to how well business leaders are able to integrate it into their workflows to improve the way they work.
Governments and regulators
Governments and regulators also play an important role in driving transformation by developing policies that encourage a digital future.
An example of such a regulation is The European Single Electronic Format (ESEF) issued by the European Securities and Markets Authority (ESMA). The regulation introduces a new mandatory digital format for annual financial reports.
Customer expectations are constantly increasing. Therefore, businesses need to come up with better ways to meet these expectations and keep ahead of the competition.
Today’s customers look beyond the quality of products and services - they look for extraordinary experiences.
Businesses need to be able to provide fast, secure, and convenient services to keep their customers happy and engaged. Thus, they need to rethink and improve existing processes to deliver more value to their customers.
Examples of successful digital transformation
We have gathered a few success stories to provide you with real-world examples of digital transformation so you can better understand how it can realistically help companies.
The Beierholm story
Beierholm, one of the largest accounting and audit companies in Denmark, implemented Penneo’s digital signature and digital transactions software back in 2015. By digitizing their signing processes, the company got rid of paper-based transactions and manual labor.
All documents from engagement letters to annual reports are now sent out for signature via the Penneo software. This means they no longer have to go through the hassle of printing, scanning, and mailing documents.
On top of that, recipients can now conveniently sign the documents digitally from any place, and on any device. Not to mention the benefits associated with security and the compliance with global requirements for digital signatures, data management, and identification.
As a result, Beierholm managed to save 1.5 hours per client on average. Do you want to know more?
The Copenhagen Airport story
Copenhagen Airport’s (CPH) HR-department started using Penneo’s solution for digital signature & digital transactions in 2017. They currently use Penneo to send out employment contracts for signing and safely collect employee information using the Forms features.
This means administrative manual tasks are significantly reduced and employee information is gathered and stored in a secure and compliant way.
As a result, Copenhagen Airport now saves approximately 5000€ per year on postage, envelopes, and paper. On top of that, Penneo helps them store and manage employee data in a GDPR-compliant way.
Do you want to learn more?
What are the benefits of digital transformation?
Digital transformation is an excellent way to optimize business processes so you can improve efficiency and deliver a better customer experience. This part of the article focuses on the many benefits of digital business transformation and why it is so important nowadays.
Create more value for your customers
Digitizing and automating recurring tasks allows your employees to focus their time and energy on creating more value for customers. As an added benefit, automation significantly reduces the likelihood of human errors in the workplace.
Increase employee engagement and productivity
Everyone hates administrative tasks. They can be very time consuming and don’t contribute to the output of the business. On top of that, administrative burdens represent an extra cost for the company and significantly decrease employee motivation.
Digitalization eliminates the time and energy wasted on tedious office tasks and allows employees to focus on more creative and challenging projects that benefit the business and its customers.
Companies can easily cut administrative costs while increasing employee engagement and productivity by adopting digital solutions.
Improve business agility
In an ever-changing world, it is crucial for businesses to be able to quickly respond and adapt to challenges.
The COVID-19 pandemic was an unprecedented shock to businesses everywhere. Many found it difficult to adapt to the new conditions since they lacked the digital tools needed to work remotely.
Digital transformation allows businesses to quickly respond to changes in the market which constitutes a huge competitive advantage nowadays.
What is a digital strategy?
A digital strategy is a plan of action to better meet customers’ needs by improving existing processes with the help of digital technologies.
As mentioned earlier, a digital strategy means more than simply embracing new technologies. It’s about identifying the issues you wish to solve through digital transformation and implementing the right digital solutions to improve customer experience.
The lack of a clearly defined strategy is one of the most common barriers to digital business transformation. Therefore, we have put together a simple 6-step framework to help you start your transformation journey.
1. Define your goals
The first step is to identify the problems you want to solve through digital transformation and clearly define your goals.
2. Communicate your vision for digital transformation
Clearly communicate your vision for digital transformation to employees.
This step helps people within the organization understand how their work processes will change and what the benefits are.
3. Start with a simple but impactful initiative
Define impactful and concrete initiatives including specific measurable results.
4. Choose the right digital technologies
Choose the right digital solutions for your business and make sure they align with your overall business strategy.
5. Find the right partners
There are many providers of digital solutions out there, so make sure you choose an expert partner that shares your vision for digital transformation and can contribute to your business’ success.
6. Continuously improve and adjust based on feedback and experience
How can Penneo help you kickstart your digital transformation journey?
Penneo’s digital tool helps companies automate paper-based processes and signing workflows. Our solution ensures the highest level of security and compliance with legal requirements for digital signatures and GDPR.
With Penneo, you will increase productivity, reduce costs, provide a better customer experience, and improve employee engagement.