Why Digital Transformation is Essential For Business Growth?

How Digital Transformation Changing the Business Approach?

As technology evolves, the business changes its approach, like the ship changes its path with the wind. Consumer behavior and expectations are shifting more towards digital and personalized experience, which is the by-product of digital transformation.

Emerging technologies like AI, cloud computers, and IoT have changed traditional industries as they start to adopt new processes and infrastructures to compete in the market.

Look at Netflix; once they sent DVDs to their customers, now they changed with time and became the biggest streaming service. They have implemented machine learning and AI to offer more suitable content to their users.

Digital transformation enables companies to leverage these technologies, offering a competitive edge by improving operational efficiency, enhancing customer experiences, and enabling data-driven decision-making.

Here are some of the statistics that can help you understand how digital transformation is critical for business,

• 73% of consumers prefer brands that offer personalized experiences.
• 64% of businesses that invest in digital transformation are more likely to achieve their objectives.
• 89% of companies have adopted a digital-first business strategy or plan to do so.
• 56% of CEOs say digital improvements have led to revenue growth.

Businesses that focus on customer experience during digital transformation are 60% more profitable than those that don’t.

Why Digital Transformation is Essential for Business Growth in 2025?  

At Vrinsoft, we have helped our client achieve better result through digital transformation. Here are some of the reasons we found that make it essential for every business.

Meeting Evolving Customer Expectations

By 2025, customers will expect seamless and personalized experiences across all touchpoints. Digital transformation allows businesses to use the latest technologies, like AI and big data, to anticipate customer needs and tailor their services to deliver real-time solutions.

We helped one of our clients automate the feedback system with natural language processing, which helps them reduce the time to solve queries and help with targeted marketing campaigns. Companies that fail to meet these evolving expectations risk losing customers to competitors who can offer more intuitive, tech-driven experiences.

Enhancing Operational Efficiency

Businesses of all sizes, from startups to enterprises, need automation to reduce manual error and speed up processes. Digital transformation is important for businesses as it offers RPA and cloud computing, which can help them optimize their workflow and cut costs. Companies that prioritize the digital approach will outperform those relying on traditional and slower methods.

They will gain an edge in productivity and responsiveness. This is what we delivered to one of our clients; we developed an AI-based inventory management system for the whole car dealership. This not only reduces the time to manually find and record all equipment but also streamlines purchasing processes through automated reordering.

Leveraging Data for Strategic Decisions

For modern businesses to get better ROI, they need to utilize data as their core business asset. Digital transformation becomes vital for business as it helps collect vast amounts of data. They can analyze this data and find insights that can take their business in a new direction. Soon, a business that uses data analytics will have a clear understanding of market trends and how the customer behaves. They can predict the operational performance and adapt strategies to stay ahead of the competition.

Driving Agile Transformation

Companies that are left behind in making the changes and quickly adopting new trends face certain losses. It’s like businesses that are still in the typewriter age will not succeed in the market where consumer demands are changing rapidly. This is when digital transformation becomes essential for business growth as it offers the agility to quickly adapt to market demand.

They can launch new products and enter new markets with speed by adjusting to the disruption. Those companies that implement digital transformation strategies can leverage advanced technology to better position themselves in the market and capitalize on emerging opportunities.

Securing a Competitive Advantage

While providing better services and changing the internal process can help a company progress, they still need to compete in the market. That’s when digital transformation becomes critical for businesses as they can help differentiate themselves through better customer experience. Those businesses that have integrated digital tools are already one step ahead in the market, and they can set the benchmark.

Explore our digital transformation guide for modern business: debunk myths, overcome challenges, and implement strategies to ensure business success in 2025.

Real-world example of Digital Transformation

No matter how many times we explain the benefit of digital transformation, it always seems like something you don’t need. Here are some of the best examples of digital transformation and how it changed the way it operates.

Domino’s Pizza

One of the prime examples of why digital transformation is essential for business is Domino’s. It transformed itself from a traditional pizza chain to a tech-savvy food delivery service. Implementing an app and online ordering system with features like real-time pizza tracking created a better customer experience that offers more convenience. With the help of digital transformation, their digital sales skyrocketed, contributing to over 70% of their global sales. This approach allowed them to outpace competitors and quickly adapt to market demand, which was essential during the pandemic when everyone was ordering online.

Nike

Nike implemented digital transformation by creating a seamless omnichannel customer experience. They introduced the Nike App, which offers personalized product recommendations and exclusive content. By leveraging data analytics and integrating digital experiences both online and in-store, Nike has increased customer engagement and loyalty. Their digital-first approach has led to a significant boost in direct-to-consumer sales, helping the brand achieve a 30% growth in digital revenue.

Walmart

In response to strong competition from online retailers like Amazon, Walmart made significant investments in digital transformation. They added conveniences such as online grocery pickup, a user-friendly mobile app, and automated inventory systems. Walmart also used AI to create personalized shopping experiences and predictive analytics for better inventory management. These efforts led to a 79% increase in e-commerce sales during a crucial period, demonstrating that traditional retailers can thrive in the digital era.

Conclusion: Embrace Digital Transformation for Sustainable Business Growth

There is no denying the importance of digital transformation and how it can help businesses in the healthcare, retail, banking, or the tourism industry. We are seeing a sharp increase in businesses starting to utilize new and emerging technology like AI, cloud computing, and more. As a leading digital transformation company, we have helped many clients take the first step with implementation.

If your business is running on an outdated system, or are you worried about the rising cost and decreasing profit, then digital transformation will become essential for your business.

Consult with us today, and let us help you streamline operations. Vrinsoft is a top digital transformation service provider with a proven track record of successfully implementing solutions for a wide range of businesses in every industry.