New research from ratings and reviews platform GoodFirms identifies and analyzes the current state of digital businesses, including the key driving factors, opportunities, barriers, and future scope of businesses in digitization. The study also highlights the most significant tools and technologies digital businesses use.
The firm’s new Digital Business Knowledge report provides valuable insights into business digitization and its potential in the current market scenario. According to the survey, nearly four in five (78.6 percent) businesses have reported a complete digital adoption of their operations and have automated most of the manual work.
The study finds the most popular and known digital technologies are Machine Learning, Artificial Intelligence, AR/VR, Robotic Process Automation (RPA), the Internet of Things (IoT), Blockchain, 5G, Edge Computing, and Quantum Computing.
More than 7 in 10 (72.8 percent) respondents chose lower operational cost as the key reason for digitizing their business, followed by improved customer satisfaction (70 percent), quality & sustainability (64.2 percent), enhanced productivity (59.6 percent), better decision making (53 percent), and increased transparency & visibility (50.1 percent).
When queried about major benefits achieved by organizations post-digitization, 72.8 percent said improved customer experience was the major advantage, followed by improved business growth, less operational costs, employee empowerment, improved reach, and agility.
The study also revealed some of the major challenges faced by businesses and entrepreneurs while digitizing their businesses
About 52.7 percent of respondents reported a lack of budget as the key challenge, while 49.3 percent responded with a lack of executive support. Other challenges include a lack of resources, digital business skills, customer focus, IT engagement, BPM skills, weak business skills, and complex tools.
While considering top tools used by businesses, digital marketing topped the chart, followed by CRM, accounting, HR, social media management, inventory, and e-commerce.
Based on the findings, the firm concluded that digitization benefits businesses by promoting automation and allowing an increase in operational efficiency. Digitization also reduces the need for human intervention resulting in low operating costs and reducing the chances of error.
- Machine Learning, AI, and AR/VR are the most known digital technologies.
- 8 percent of those surveyed consider lower operational costs to be the major reason for digitizing their businesses.
- 70 percent said digital businesses provide better customer satisfaction.
- 2 percent said digitization can help improve the quality and sustainability of the business.
- 8 percent witnessed improved customer experience post-digitizing.
- 7 percent say they cannot adopt digitalization due to a lack of business budget.
- 8 percent consider digital technologies and capabilities important to their organization.
- 4 percent believe digitization can empower employees by providing them with the tools and resources they need to work more effectively and efficiently.
The research draws valuable insights from executives and professionals from various industries that will enrich the understanding of business digitalization and its potential in today’s world.