Source: nic.lat
Today, most companies realize the intrinsic value of data and analytics to improve processes, products, services, customer support which ultimately leads to an overall increase in customer satisfaction. Customer data is crucial in any industry and for businesses, no matter the size. Since COVID-19 sped up the need for digital transformation for most businesses, data has become more relevant and important than ever before.
In this article, we extensively discuss how data and analytics plays a fundamental role in the digital transformation of companies. Before we dive in, it’s important to understand the essence of digital transformation.

What is digital transformation?

Source: information-age.com

I assume that many of you reading this article probably already know what this term means so you can probably skip the next few paragraphs. But, for those that are uninitiated, here are the basics.

You kinds of technology are introduced almost every single day. This kind of new technology can help shape the future of a business. When a business uses technology to optimize the way they operate, we refer to that as a digital transformation. Even the simplest implementation of technology is seen as a transformation. This could be the installation of new computers, Wi-Fi routers, or switching all paper documents into digital documents.

For this kind of transition of a company to be successfully executed, several need to be taken into consideration. The most important factor is good leadership. After that, a good leader also has to ensure that the employees have all been introduced and informed of this new transition.

Good leadership also means that there needs to be a good understanding of the information gathered to make the smoother digital transformation. This is where data and analytics come into play.

Customer behavior prediction

Source: entrepreneur.com

When trying to change how your company operates or how you handle clients, it is important to have some kind of data to justify those changes. What is the point of changing your business’ ways of operation if the customers do not like that change?

This is why it is so important to understand that digital transformation cannot and should not be forced. You do not need to do it just because it to be done. Forget about what your competitors are doing. Forget about what the largest corporations are doing. What you need to focus on as the owner of your business is what your customer wants.

To figure out what they want, you can use data and analytics to predict the behavior of your clients.

The more data you have, the more accurate your predictions.

For example, companies that have access to a lot of analytics such as Facebook or Amazon can make very accurate predictions. They cannot predict exactly when people will be interested in a certain type of products, when they will need a certain type of services, etc.

Of course, a smaller business will have less analytics information, but you can still use that to make positive changes to your company that will ultimately lead to customer retention.

It is essential to understand why you should always base most of your improvements based on the customers. These kinds of moves will also improve consumer loyalty.

To improve customer experience

Source: itpro.co.uk

In the previous few paragraphs, I mentioned that the opinion and needs of your clients should be one of your most important factors for everything that your business is about.

Fortunately, data and analytics in digital transformation can be used for enhancing the client’s experience. With the information you have, you can understand their needs and their feelings toward your brand. Their feelings toward your products and services.

By optimizing your services and products based on the needs of your clients, you put yourself in a win-win situation. You can and will effectively cut down the time required for one sale. This saves time both for the customer and your business.

By decreasing the time needed to make one sale, you can considerably increase the number of sales. This will lead to bigger and better revenue. However, to ensure that you will effectively improve the experience of your customers, it is very important to make sure that you have accurate data. To achieve that, you will need to use the proper data governance tool. A tool that will always deliver clean and high-quality data, accurate analytics that will ultimately lead to better business decisions and results as suggested by Datashift.eu.

When your decisions are backed up by accurate and high-quality data, you will quickly overcome your competitors and gain higher revenue and profits which is something that every business owner should strive for.

To improve business processes

Source: icinga.com

How can data and analytics improve your business processes? Data and analytics improve businesses processes by providing accurate information and automating processing of data and reports so that managers and business owners can make sound decisions promptly. Business data and analytics avoid delays in approval because real-time updates are readily available. 

It’s now possible for businesses to have a discovery platform that analysts can utilize for data analysis. By doing so, the latter can deliver powerful insights quickly and easily. With digital transformation, governing tools define data assets, standard business glossary, and access limitations.

Of course, data catalogs are also available to help businesses find relevant data they need without having to email people or go back from one resource to another. Data catalogs help create a data-driven culture, allowing analysts and the entire organization to search and understand business data by themselves by navigating in a few clicks or using natural language.

With digital transformation, it’s now possible to crawl metadata from source systems and run different algorithms (for building statistics, lineages, and relationships). All of these can be All of these can be achieved with the help of a trusted provider. You can find out more on how a data governance expert can help your business leverage digital transformation on sites like ovaledge.com.

To avoid risks, scams, and frauds

Source: itpeernetwork.intel.com

The market in any industry is not always perfect. No matter how good you try to be with your audience, there will always be someone who will try to execute some kind of scam or fraud. This is a risk to your company which is why you need to do something against that.

One of the better ways you can battle against digital scams are frauds is with the use of big data and analytics. With the information you have, you will be able to predict the behavior of a scammer. Basically, you can predict the scam before it even happens.

By doing this, you will considerably reduce the risks in your business and you can focus your time, money, and effort on a successful digital transformation.

Conclusion

It is quite apparent that digital transformation in 2021 is essential. And, as the years go by, it is becoming even more important. But, to successfully execute that kind of huge transition, is very important to understand the role of data and analytics. Without properly analyzing data and analytics, you may not lead the digital transformation in the direction you originally wanted.