Achieving operational efficiency could provide numerous benefits to an organization including cost reduction, increased productivity, agility and adaptability, long-term growth, and a competitive edge. Digital transformation has become a key driver of operational efficiency in many ways, some of which this article explores using real-world examples and statistics.
Automation and Time Savings
One significant feature of digital transformation is the automation of routine tasks, thereby freeing up time for employees to focus on more strategic and creative work. Royal Dutch Shell leverages automation to increase productivity, reduce costs, improve safety, and enhance operations. In 2019, the company leveraged automation technology at a facility to achieve a 20% cheaper installation, 50% faster performance, and 60% cleaner operation.
Businesses like manufacturing plants, grocery stores, warehouses, online retail, and call centers, deploy automation to their systems to cope with increase in demand, and over 60% of businesses plan to increase their investment in automation according to a 2020 survey by Mckinsey.
Optimization of Workflows
Digital transformation can optimize workflows, enabling businesses to identify bottlenecks and streamline operations. In a 2018 study by PTC, business executives said that digital transformation had improved operational efficiency by 40%. Digital tools enable organizations to speed up time to market, increase design reuse, reduce product development and poor quality costs.
A 2016 research by GE suggested that deployment of digital solutions can reduce unplanned downtime by 36% in the offshore oil and gas sector, leading to savings up to $17 million.
Data-Driven Decision Making
A key benefit of digital transformation is the ability to collect and analyze vast amounts of data, enabling organizations to make more informed decisions. Retail giant, Amazon, adopts a data-driven decision making culture across the entire organization to optimize its supply chain, inventory management, customer service, and pricing strategies. This approach has contributed to its consistent growth and profitability over the years.
Improved Collaboration and Communication
Digital transformation fosters better collaboration and communication within organizations by connecting employees through digital platforms and tools. A 2013 study by deloitte found that organizations that deploy effective digital collaboration tools were more likely to achieve a 22% boost in employee satisfaction.
Also, seamless communication within organizations can foster an environment that encourages innovation and efficiency. CISCO webex case studies highlight how the organization's webex solutions enable collaboration and seamless communication, fostering new ideas.
Digital transformation offers numerous benefits to organizations seeking to increase operational efficiency, by automating routine processes, optimizing workflows, leveraging data-driven insights, and improving collaboration.
Deploying digital transformation systems and embracing a digital transformation culture enable organizations to save cost, become more profitable, experience growth, and achieve long-term success.
At 160Bits, we provide comprehensive digital transformation solutions and IT services, including virtual CIO, IT consulting, web application development, and IT training. Our team of experts will work closely with you to identify your unique needs, develop a tailored digital transformation strategy, and support you throughout the implementation process.
Leverage our expertise and experience to drive your digital transformation journey and unlock the full potential of your business. Contact us today to learn more about how 160Bits can help you succeed.