Digital Transformation for Enterprises: Is It Worth the Money?
The very term digital transformation is so broad that modern enterprises do not always get it right. Some think it’s a standard, one-for-all procedure that costs an arm and a leg. Others perceive it through the lens of modern business trends: “We need it because others do it.” And still, they think of it as something overpriced.
Meanwhile, digital transformation boils down to refining a firm’s operations and clientele satisfaction with custom-tailored software solutions, which is crucial for increasing competitiveness. Regarding the cost, with correct project estimates, diligent planning, and ethical implementation, digital transformation for enterprises cannot be too expensive because it returns the investment by making the business earn more.
The Market Says It All
Words are meaningless in the world of business. Instead, numbers are the mother tongue of those responsible for the companies’ critical decisions. The figures behind the growth dynamics of a custom software development market leave us no choice but to come to terms with a fact: companies opt for digital transformation vigorously because it drives profitability. Statista claims that the market, currently worth approximately $600 billion, will reach $812 billion by 2027. That is, $50 billion will be spent annually by companies worldwide on digital transformation without questioning the relevancy of such a decision.
The Cost of Digital Transformation for Enterprises
There is no universal price for digital transformation, and it’s a well-known truth. As mentioned above, it’s not a standard, one-for-all procedure being discussed. The price will differ depending on the transformation scope and the project’s specifications. For example, you might want to automate a single process within business operations or need a total rehaul of your proceedings. Accordingly, the budget for a business’s digital transformation will change.
Nonetheless, there are some standard prices that can give companies a ballpark figure of what their custom software development project might cost. In general, the fees range between $20,000 to $500,000. Yet, enterprises rarely opt for small-scale projects, as small-scale solutions cannot rightly serve the level and intensity of their operations. Furthermore, middle-sized and large projects require more time for delivery — six months are the Goldilocks standard. Finally, $50 per middle developer will do the job regarding the hourly rates. Hence, it is somewhat near $500,000 if we discuss an enterprise-level digital transformation project.
Often, enterprises are afraid to step into the uncharted waters of software development. Yet, they are being pressured to do so because their market relevancy is at stake. However, there is no need to worry, as there are no legally binding contracts to sign until you get a project estimate from your tech partner. That is, you will get to know your options and choose the best one before embarking upon any project.
Digital Transformation for Enterprises: Benefits
Now that we’re done talking about prices let’s elaborate upon the value an investment in digital transformation brings to businesses.
Here’s a fascinating analogy: try thinking about digital transformation for enterprises as a race. First, a company and its competitors drive at the same speed, as all vehicles have the same engines, equally experienced drivers, and the same aerodynamic properties. Then, suddenly, one company gets a motor twice as powerful as the other cars and an autopilot that relieves the driver and the entire crew of the most tedious and manual tasks. There’s a %99.9 chance that this car will now win the race. Digital transformation does the same to businesses: it makes them faster and more efficient by optimizing the processes at every level of operations.
Bolstered Business Intelligence
Let’s not talk about races here but knowing in advance when a bumpy road or a sharp turn comes lets you save your vehicle by moving carefully, omitting the dangers waiting for you after every reckless decision. Likewise, integrating digital solutions into a business helps companies leverage the power of raw data by translating it into usable, properly visualized, and structured insights. Harnessing data helps enterprises stay proactive rather than reactive when handling business risks and opportunities.
Enhanced Customer Experience
Digital transformation can happen both on the exterior and interior of your organization. Yet, even if you only improve and automate the process hidden from your customer’s eyes, it cannot fail to enhance their experience, which is one of the cornerstones of modern businesses’ competitive advantage. Establishing omnichannel customer care is one of the best things a company can do in this decade to improve sales and overall profitability.
Cutting Operational Costs
Optimizing the company’s operational expenses is crucial: this is one of the most efficient ways to boost a business’s performance, as it lets the company free a lot of costs to invest in business expansion, hiring mature experts, etc. For example, introducing Robotic Process Automation in your organization can bring an up to 80% cut down in an enterprise’s processing cost. The only task remaining here is to track down a proper tech partner who can identify the operational areas needing automation and implement the required solutions.
Sure enough, one cannot embark upon the digital transformation of their enterprise with no long-term strategy and expect it to succeed. However, suppose an enterprise gets a solid tech partner who can get them from ideation to implementation with due regard and diligence to the company’s business needs and context. In that case, it is improbable that your digital transformation project won’t pay back.