Digital transformation is key to growth but cost, training and time constraints are major barriers to new technology adoption.
Although 95 per cent of businesses agree that digital transformation is key for profitability in 2023, new research from Clio revealed that less than a third (29 per cent) actually plan to look for new technologies improve current practices. The research also revealed that the biggest barriers to digital transformation were price (52 per cent), training expectations (47 per cent) and time (40 per cent).
“Digital transformation can be transformative for businesses, and it is vital that leaders do not overlook how important this is, even while considering budgets and spending in times of economic uncertainty,” said Sarah Murphy, general manager at Clio EMEA.
“Utilising technologies specifically tailored to business needs can help improve efficiency and workflow productivity. Our research revealed that 95 per cent of law firms see technology as playing a key role in helping them remain profitable in 2023. Legal businesses that use cloud-based and customer relationship management software were 11 per cent more likely to report a big increase in revenue and sales, while businesses in the sales industry saw an increase of an average of 30 per cent.
Having the right tech in place can help to streamline, automate and speed up the more tedious tasks, including document processing or methods of client intake and onboarding. This means employees can focus on value-add tasks. Investing in automation software and an effective client relationship management system means businesses not only make internal processes more efficient but can consequently focus on securing end-results that contribute to profitability.
“Digital tools and software can also help businesses to more effectively measure gaps or opportunities they would otherwise miss,” Murphy continued. “Businesses can utilise technology to measure and evaluate performance or to effectively trial different strategies to find out what works best. By implementing performance dashboards and similar software, you can track key metrics to identify, and tackle, inefficiencies you may not even be aware of. Software can also be used to analyse where your most valuable clients are coming from and where your time (and valuable resource) could be better spent. By maintaining a high-level overview of company performance, businesses will be able to devise a more effective strategy for pursuing new clients, expanding on opportunities for growth and success.”
Adopting digital transformation also helps businesses meet developing consumer expectations. The way businesses and consumers interact has changed and clients aren’t content to wait for or seek out a response from a business. They expect businesses to respond almost immediately. Responding to an enquiry from a potential client 30 minutes after they contact you versus five minutes after they contact you means you are 100 times less likely to secure them. This is where client relationship management and automation software can assist with and elevate the response process.
According to a McKinsey report, 75 per cent of B2B customers now favour virtual over in-person interactions with businesses. As consumer expectations shift to focus on an ease of communication and instant access to customer support, businesses that cater to these expectations and respond through flexible means will stay ahead of those that fail to modernise and adapt.
“Digital transformation has a benefit for your workplace culture and employee retention rates also,” Murphy added. “Remote and hybrid working enable businesses to reach top talent beyond their immediate geography, offering advantages in terms of flexibility and work-life balance. Technologies such as automation and cloud-based management systems can also help alleviate unnecessary pressure on employees, reducing the rate of employee burnout.
Ultimately, businesses that prioritise digital transformation are likely to see long-term benefits to productivity, as well as customer and employee retention, and will consequently become stronger, more efficient, and more resilient.