10 reasons to start digital transformation now

Digital transformation is no longer an optional choice, but a necessity for businesses that want to remain relevant and competitive in a rapidly changing market. In addition to improving workflows and achieving scalability, there are many more reasons why digital transformation is a good decision. We’ve outlined the ten most important reasons for you.

A digital transformation involves more than just upgrading, modernizing, or even completely replacing legacy IT systems. It is a fundamental change in the way processes within your organization are structured and executed. A successful digital transformation is based on a solid strategy. Knowledge of technology, company culture, employee cooperation, and the unconditional support of management are factors that determine the ultimate success of a digital transformation.

In December 2024, Computable published a study on digital transformation. In the study, conducted by Enigma Research, respondents were asked about their main motives for digital transformation. The ten most important reasons from this study are further elaborated in this blog article.

1. Improving competitive position

Companies that choose not to innovate run a significant risk of being overtaken by competitors who do. With the help of artificial intelligence and flexible cloud solutions, emerging companies are able to disrupt traditional business models of long-established companies in a short time. Traditional companies that want to survive would therefore do well to embrace innovation in order to shorten their time-to-market and protect their market share.

Digital transformation opens the door to innovative products, services, and even entirely new business models. Companies that undergo digital transformation are better prepared to integrate disruptive technologies such as AI, IoT, and blockchain into their operations, thereby enabling growth and innovation.

2. Achieving scalability

In general, legacy systems are difficult to scale. This is because they rely on outdated technology that offers limited options for expansion. In addition, legacy systems often depend on outdated hardware, which is less energy-efficient than modern equipment. If a company still decides to scale its legacy systems, this situation also results in higher electricity costs. It is therefore better to opt for a smart cloud solution.

With cloud technology, expanding capacity is usually a breeze. This is especially true when a company chooses a cloud service provider, where scaling up or down is typically included as a standard part of the service. This is also useful for companies that occasionally experience peak loads. To handle this extra demand, a company doesn’t need to temporarily or permanently purchase additional hardware; instead, it can simply and quickly allocate more capacity via an online dashboard.

For companies dealing with fluctuating demand or expecting sustainable growth, choosing cloud technology makes sense because of its flexible scalability.

3. Data-driven decision making

Good decision-making relies heavily on data. Every organization has data available, but making that data accessible is not always easy. Especially in environments with many legacy systems, retrieving data often requires lengthy and labor-intensive processes. As a result, many companies don’t always make the effort to access this data – a missed opportunity, since it means leaving valuable insights on the table.

By choosing digital transformation, your organization can rethink the configuration of its future systems. You can determine which data from these systems is crucial for your business operations and take that into account when designing and implementing new systems. The result is that the necessary data will be available quickly and automatically.

Collecting data offers a major advantage: by gathering and analyzing large volumes of data, companies can gain deeper insights into their market, customers, and internal processes. This leads to better-informed decisions and strategic advantages, all factors that contribute to improving competitiveness and profitability.

4. Streamlining internal processes

Digitalization offers unprecedented opportunities to streamline internal processes. By implementing advanced software and automation solutions, companies can drastically improve their operational efficiency. Think of automating repetitive tasks, speeding up decision-making processes, and minimizing human errors by automating processes. Especially the exchange of data between departments becomes much easier after the digital transformation. In a modern digital operation, relevant data about business processes is available to management in real time. This ensures better ad-hoc and strategic decisions.

5. Strengthening cyber resilience

Outdated applications are often vulnerable to cyberattacks and in many cases do not meet current security standards. If an organization chooses to modernize legacy applications as part of digital transformation, it can significantly improve its cyber resilience. Modern technologies and platforms can be equipped with the latest security methods.

In addition, a modern IT architecture offers better opportunities for automated security processes, real-time monitoring, and quick incident response. By choosing modern IT systems, companies are also better able to comply with current and future laws and regulations regarding data protection.

6. Providing a superior customer experience

In a world where customers have increasingly high expectations, smooth and flawless digital interaction is essential. Digital transformation enables companies to offer personalized services, respond more quickly to customer inquiries, and integrate multiple contact channels into online systems.

With a superior customer experience, companies differentiate themselves in a competitive market. It results in higher customer satisfaction, a better image, greater loyalty, and an increase in purchases. Ultimately, this leads to better business results, which is a prerequisite for a company’s growth and continuity.

7. Achieving cost savings

Although digital transformation requires significant initial investments, it ultimately leads to substantial cost savings in the long term. More efficient processes, reduced downtime, and optimized use of resources contribute to improved business results.

The use of modern technology also leads to fewer application failures. Cloud solutions are generally built with redundancy. In case of disruptions or outages, a backup system can be used without interruption. This means that business processes continue to operate under all circumstances, avoiding costs due to downtime.

Additionally, creating and restoring backups in modern cloud environments is much easier. In a legacy system, this is generally a time-consuming and labor-intensive task. With a modern cloud solution, creating and restoring a backup is usually a breeze. The time savings companies achieve with this result in lower costs compared to an outdated environment.

8. Complying with laws and regulations

The world of laws and regulations surrounding data and digitization is constantly evolving. By undergoing digital transformation, organizations can ensure they comply with the latest requirements and standards, minimizing legal risks. Modern IT systems are often better equipped to protect sensitive data and meet increasingly strict legal requirements.

Additionally, many companies are required to produce regular reports as part of compliance with laws and regulations. When using legacy applications, collecting data is a difficult task. Data is often hidden across various legacy applications and must then be manually processed into reports. If a company has integrated modern systems into its operations, collecting data and generating reports becomes much easier. In most cases, generating (periodic) reports can even be automated.

9. Improving operational work processes

Modern technology plays an increasingly important role in how employees perform their daily work. Digital transformation enables the integration of innovative tools and platforms that enhance the collaboration and productivity of teams and individuals. By modernizing the work environment, companies can not only make employees’ work easier, but also position themselves as attractive employers for young talent accustomed to working with modern systems and user-friendly applications.

Digital transformation also makes it possible to provide applications for mobile devices such as smartphones and tablets. This ensures that your employees can carry out their work from any (work) location.

10. Enabling innovation

The past few years have shown that market conditions can change rapidly. Companies that operate flexibly in a changing market and can innovate quickly create a significant competitive advantage. Digital transformation opens the door to innovation. New technologies and data-driven insights create opportunities to develop innovative products, services, and business models. Modern technologies are also easier to integrate with other systems, making data exchange much easier. Management can thus make better and faster strategic decisions based on data.

Also want to start with digital transformation?

Digital transformation is not a one-time project, but an ongoing process of adaptation and improvement. Companies that proactively invest in their digital infrastructure create an advantage over competitors operating in the same market.

A successful digital transformation requires a well-thought-out strategy, a clear vision, and a structured approach. It is an investment in the company’s future, laying a strong foundation for sustainable growth and success.

At NetRom Software, we understand the opportunities and challenges associated with digital transformation like no one else. Since our founding in 1999, we have supported hundreds of companies worldwide and achieved successful transformations. Contact us today to discover how we can guide your company through this process.