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THE IMPACT OF DIGITAL TRANSFORMATION ON THE EFFICIENCY OF INSTITUTIONS

  • Business Aloqili
  • May 7, 2024
  • 3 min read

After understanding the meaning of digital transformation, we now move on to the role of effective digital transformation in achieving remarkable results in the growth of organizations. Some of the most prominent advantages of digital transformation include:

Increased productivity

Digital transformation works to accomplish tasks quickly compared to traditional methods that used to take a lot of time and human effort. Digital transformation helps in completing tasks faster, thereby increasing productivity in organizations while reducing error rates that occur due to human factors.

Improved communication and collaboration

Digital transformation serves as a means to connect all sectors of an organization internally and externally, facilitating communication between employees or between employees and customers. This leads to collaboration, ultimately resulting in company growth.

Digital transformation enables the connection of all departments within an organization through a medium that allows each department to provide the information needed by other departments smoothly and without wasting time or compromising information. This fosters collaboration among all departments to work towards the expansion and prosperity of the organization.

Enhanced customer service

On the other hand, digital transformation works towards providing the best services to customers by identifying their requirements, monitoring service delivery, and determining appropriate communication methods. This enables the organization to convert potential customers into loyal customers.

Therefore, it can be said that digital transformation plays a crucial role in improving customer service, acquiring more customers, expanding the customer base, and increasing the organization's reach.

This effective role is manifested when implementing digital transformation in law firms, where all customer data and legal matters they seek solutions for are recorded. Subsequently, communication with customers is conducted based on their needs, providing all the means and methods that enable them to obtain the legal consultation that is most suitable for them and to resolve any legal issues they may face.

 

Cybersecurity

Cybersecurity is one of the challenges facing organizations and institutions. Their highly sensitive and confidential information is crucial for the success and growth of these entities, and any cyber attack can lead to the destruction of the organization. This is ensured by the digital transformation, which works to protect all information and data of the organization at the highest level of cybersecurity.

Cost Efficiency

Although implementing digital transformation within an organization may require some additional expenses, the results of this transformation bring numerous benefits to the institutions and help reduce costs that would be wasted if traditional workflows were adopted.

However, there is a belief that digital transformation leads to a reduction in the workforce in any organization. In reality, digital transformation is a means to organize work among the existing workforce in the organization in order to increase productivity and reduce error rates.

Data Analysis and Artificial Intelligence

One of the impacts of digital transformation on the efficiency of organizations is the ability to accurately analyze data relying on artificial intelligence. Accurate data analysis helps decision-makers in the organization make sound decisions that contribute to achieving the desired growth for the institution. The accuracy of these decisions is usually a result of precise data analysis and proper market and customer research.

Improvement in Procurement and Supply Operations

It is natural for all organizations that provide products to customers to work on obtaining the necessary products for their trade on one hand, and to supply products to their customers on the other hand. The role of digital transformation in these operations is evident, as digital tools help determine the quantity of products available in inventory and alert the purchasing department to replenish these products.

On the other hand, digital transformation helps identify the products that need to be supplied to each customer individually, as well as the delivery time and quantities. Each department responsible for product supply works towards providing the required products by the specified deadline.

Artificial Intelligence and Skill Development

With the continuous technological advancements and the discovery of new ways to facilitate work, it is natural for digital transformation to undergo frequent developments. This requires both organizations and individuals to engage in continuous learning in order to maximize the benefits of these technologies for the growth of their institutions.

Digital transformation also adds new skills to the workforce, enabling individuals to develop themselves and enhance their abilities to adapt to the digital transformation.

Sustainability and the Environment

Digital transformation involves changing traditional work methods that rely on environmentally harmful products. For example, one of the goals of digital transformation in education is to reduce the use of large amounts of paper, which is detrimental to the environment. Digital transformation has achieved this objective.

Furthermore, implementing digital transformation in an organization contributes to sustainability, as it eliminates the need to change work systems frequently. The organization can continue operating using digital transformation tools. Therefore, embracing digital transformation is a sustainable solution that fosters the long-term growth and development of an institution.

 
 
 

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