Digital transformation is defined as a customer-centric reimagination of the future of digital technology into all areas of business, profoundly changing how it operates. But why does this matter? Recently, LTi’s COO, Bill Weeks spoke about digital transformation and the unprecedented opportunities new technologies can bring to the industry. Digital transformation is not just about adopting new technology, but shifting companies’ thinking and culture on technology. In today’s blog, we discuss how COVID-19 has accelerated digital transformation and three benefits it presents.
More companies embarking on digital technology
A 2019 IDC study reported worldwide spending on digital transformation (DX) would reach $2.3 trillion in 2023. Worldwide technology investments will total more than $7.4 trillion over the next four years. “The financial services sector will see the fastest overall growth with the banking, insurance, and security and investment services industries,” IDC revealed in their study.
Furthermore, the report revealed DX spending would continue to expand throughout the 2019-2023 forecast period. This means DX technology will achieve a five-year compound annual growth rate of 17.1%.
How COVID-19 has accelerated digital transformation
Since early last year, millions of people all over the world have retreated to their homes for safety. From news, staying connected, entertainment, and remote working, we have turned to the internet for everything now. In the new reality of the COVID-19 economy, digital transformation has gone from a priority to absolutely critical for companies. Before the pandemic, companies could afford to take their time with a slow and steady approach. However, the luxury of time has now turned into a necessity for companies to accelerate digital transformation. Companies have had almost a year to learn the lessons disrupted by the pandemic. Now, it is imperative that companies begin driving a digital culture into their organization.
What benefits does digital transformation present to equipment finance?
Beyond managing to stay afloat in the midst of the pandemic we’re facing, digital transformation allows companies to enjoy the following benefits:
- Reduces Operational Costs. At its core, digital transformation is about making processes and workflows faster, easier, and more efficient. For example, digitizing invoice processing can save businesses an average of $10 (or more) for each invoice they process automatically. At 1,000 invoices per month, that is a savings of $120,000 per year. Automating repeatable operational tasks such as invoice processing, administration, booking, and so on can help companies achieve digital transformation.
- Increases Organizational Efficiency. Digital technology is constantly evolving and dramatically changing the nature of the work, as well as creating new opportunities that did not exist before. As seen in the last few years, different innovations in technology are impacting a wide range of occupations and fields, leading to significant digital transformations for employees and companies alike.
- Greater Reliability. Companies are constantly seeking out new and innovative ways to eliminate human error. For example, most data entry errors are made from simple human data entry errors. While having processes and procedures are effective in reducing human-prone errors, it cannot eliminate the threat of errors the way that automation can. Instead of solely relying on workers to run core business processes manually, automation dramatically improves reliability while allowing companies to focus on growing their business.
How to implement digital transformation
Digital transformation doesn’t have to be a daunting project. In many cases, it starts with departments organically wanting to transform the company’s digital culture.
Ultimately, here are a few steps to modernize your digital journey:
- Identify the problem. Digital transformation starts with just one person running into the same, repetitive issues every day. Identify the problem and find a solution to help your people with their daily tasks.
- Find a technology partner with a robust system to help. Choosing a good technology partner is a tough process. The reality is that a beneficial partnership must be interconnected. Here at LTi, we spend our time developing key relationships with our clients. As the industry’s leading cloud-based platform, we differentiate ourselves in the marketplace by taking the time to understand our clients. As a true cloud technology partner, we take time to understand your business and implement the functionality that fits your best practices. To learn more about our customer-centric approach, contact us today on how ASPIRE in the LTiCloud can expand your organization’s growth and improve your bottom line and profitability.