Digital transformation has been one of the biggest trends in the past 10 years. Managers, executives, and entrepreneurs around the world have digital transformation at the top of their agenda. As a result, it’s almost impossible to talk about the future without mentioning digital transformation. Every traditional business has been changed by the Internet, and more specifically by data.
The rise of digital transformation is linked to the rise of analytics services and solutions market, and the trends and forecasts for global analytics are heading toward an impressive surge. In 2019, forecasts predict that the global analytics market will reach $49 billion worldwide, which is more than double the value four years ago.
Why Digital Transformation Should Be a Goal for Your Business
“Digital transformation is as important today as it was for shipping companies to start using motor transportation instead of horse-drawn vehicles, or accounting firms to start using computers instead of typewriters,” said Cat Iuga, president of Cognetik.
Cat believes that in the absence of a real focus on customer experience, companies cannot truly sustain competitiveness in key areas, such as pricing strategy, efficient management, or product quality. And the only way to achieve a true focus on customer experience is through digital transformation.
The key driving force behind this endeavor is data. Being data-driven is the end-goal of a successful digital transformation.
What Is Required for a Digital Transformation?
Even if a company establishes a digital presence, is taking steps toward an analytics implementation, or has already started collecting data in a meaningful way, the results will not be that impressive if data is not acted upon. This is what being data-driven really means: to meaningfully collect data, leverage the data you have at your disposal to generate insights, and act on them to propel your business forward.
Companies need to understand their customers to optimize their user journey. A retailer must first know what their customers are searching for to accurately promote their products to them and ensure efficient conversions.
“Businesses are not fully aware of the value of their data because most teams have their own systems and work in silos. Marketers use pre-click data to optimize their campaigns, but may not be fully aware of post-click engagement on the site or app. Product owners use CRM data, but may not be aware of all CRM data available to optimize the user experience for various customer segments,” added Cat Iuga.
To better measure the impact of being data-driven, analysts and managers should also think in terms of opportunity cost. More specifically, what the consequences are of not using data to make decisions.
“If businesses do not utilize data they have available, user experiences are not personalized, marketing messages are irrelevant, and all users are treated with the same value. This leads to lackluster spending for the most valuable users and too much spent on users who are too expensive to convert. Ultimately, businesses won’t bring in enough new users or keep the ones they already have because the user experience is not differentiated enough.”
Companies simply cannot afford to delay digital transformation anymore. If they don’t start making decisions based on data, their competitors will, and this could be painfully visible in the revenue statements at the end of the quarter.
New Analytics Opportunities for Companies
Luckily, there’s no longer a need for companies and analysts to rely on Excel spreadsheets or repetitive grunt work for data analysis. There are powerful tools at hand, capable of performing extraordinary analysis and generating insights.
Tools such as reporting platforms, tag management systems, A/B testing solutions, data warehouses, or data connectors (including our Data Streams and Cognetik Cloud Connector) make data a lot more accessible and easy to collect and handle. In the right hands, these tools are instrumental in boosting business results.
If you need help with your digital transformation, we are experts in providing assistance in all areas required to become data-driven. Check our services to find out more.