6 Biggest Benefits of Digital Transformation for Businesses

The development of Industry 4.0 is now increasingly rapid. One manifestation of its development is the existence of digital transformation that allows digital transformation in the business sector. So, how important is this digital transformation in advancing a business? Check out the full explanation below, including the goals, benefits, and examples of its application!

What is Digital Transformation?

Digital transformation is the process of moving from analog or all-conventional to digital or all-automated. This move to the digital realm ultimately also has a significant impact on the business sector, because the process of collecting and processing data will be carried out with the help of machines. In fact, some stages of business operations and marketing have also been replaced by sophisticated robots due to efficiency and cost considerations.

The Ultimate Goal of Digital Transformation

With all the controversy surrounding the digital transformation process, there is still a noble purpose to it. For businesses, the move to digitalization makes them faster in keeping up with the world. This certainly plays a big role in progressing a business, so that it can compete with its competitors in the same field.

In addition, digital transformation also encourages start-up businesses to compete at the next level with the support of social media. It is not required to have a physical store before establishing a business, but it can be started by building a digital presence so that it can increase brand awareness from the public.

Benefits of Digital Transformation

Coming as a new resolution for the industry, digital transformation definitely offers benefits that are advantageous for your business. Here are some of them.

1. Increase productivity

Advanced machines that are present as human support in the business realm certainly aim to increase business productivity. In the past, the production process relied entirely on human resources of a certain age or gender, thus potentially having weaknesses; however, robots are a solution without these weaknesses.

2. Strengthen business relationships

Digitalization implemented in a company will also let your business have strong relationships with other related parties. With a digital presence built since the establishment of the business, your company can be reached more easily by other business owners. This, in turn, will build excellent collaborative relationships.

3. Encourage business innovation

Innovation and change are two key aspects in terms of a business that can help it endure through various challenges. This need is then accommodated by technology that can help businesses understand trends as well as customer demands more quickly and efficiently.

4. Reduce the risk of fraud

Digitalization also makes business companies more transparent and accurate. The reason is, many tools now have a real-time tracking system, so business owners can monitor business operations from anywhere and at any time. This is a good signal because it helps reduce fraud by people in the field.

5. Save operational costs

One of the most important reasons for digital transformation for businesses is the budget required. When your business can be streamlined with advanced machines, you don’t need to pay many employees, but just pay for the electricity bill that might increase. Even so, this comparison is still more economical.

Examples of Digital Transformation Implementation

There are many business companies that utilize digital transformation in running their businesses. One well-known example is Bluebird as a giant engaged in the transportation sector.

As we all know, Bluebird was disrupted by the presence of online transportation applications that arrived in 2016. However, instead of slumping, Bluebird rose by presenting the MyBluebird application with the Mobility-as-a-Service (MaaS) concept.

With this concept, it means that the MyBluebird application can serve customers with three strategies at once, namely multi-product, multi-channel, and multi-payment In fact, Bluebird also collaborates with Gojek as a realization of the multi-channel strategy, so that consumers can get a Bluebird car when ordering GoCar.

Thanks to the implementation of the digital transformation done by Bluebird, they succeeded in increasing their net profit again in 2021 with a nominal value of IDR 9 billion. Even more impressive, they achieved a net profit of Rp364 billion in 2022 because they diversified their services in the logistics sector as well.

Digital transformation is important in business development. With digitalization, your business can be more productive, have more intimate relationships with other companies, increase business innovation, reduce the risk of fraud, and significantly reduce operational costs. One example of this can be seen in the transportation company, Bluebird.