A reasonable cost reduction program focuses on trimming the fat without cutting away its essential functions to sustain current business performance levels. Suppose we view an organization as a living organism. Digital transformation powers the backbone, muscle, brain, and heart of the business. Halting digital innovation efforts in crisis will significantly compromise overall business health.
Though it may seem counterintuitive, a crisis is ideal for doubling down on a digital transformation. Rather than putting digital transformation plans on hold, organizations need to go all in. The pandemic serves as a widespread test case for the productivity of these digital solutions, many of which will be permanent fixtures and lead to long-term business changes. Past recessions show that controlling costs by improving operational efficiency—a task for which digital solutions are perfectly suited—is more effective in sustaining businesses through financial turbulence than traditional cost-cutting measures alone. The ROI of digital transformation is easy to measure if you have a well-established product. If you are breaking into a new market with an innovative product, you have to identify customer satisfaction trends and positive changes to your product or service quality. For established businesses, the ROI of digital transformation is usually static. But when new technology comes into an organization, the possibility of digital growth is high.
For new products, timing is critical, which can lead to long-term ROI. It is essential to get a head start over your competitors when pushing out an innovative product or service. The best way to identify the ROI for your digital innovation efforts is to focus on your market value, your total revenue, and year-over-year growth figures for your digital transformation road-map. To ensure early efforts thrive and build momentum, companies should consider which projects to start with and support them with the necessary resources. At Nation Media Design, we have proven ways of increasing your SEO & ROI. Contact one of our experts today to get started!