Propelled by the Covid-19 pandemic, Digital Transformation has taken hold. Before getting started on the Digital Transformation journey, the question on the business owner’s mind would be, ‘What’s in it for my company?’ or as some would also say, ‘What exactly would the ROI be?’. These are legitimate questions.
Step 1: Decide on ONE digital transformation goal to set an ROI goal
Focus on ONE digital transformation goal. It should be the most critical goal and have a positive effect on the entire organization. The identification of a single goal helps businesses to plan specific strategies and use appropriate measures.
The most important Digital Transformation goal for wholesale businesses is to automate and integrate end-to-end operations from Online Ordering to Fulfillment and Billing. Automating manual processes and creating a seamless operation will be the bare minimum wholesale businesses need to establish right away. This reduces reliance on manpower and its associated human lapses and allows the wholesale business to be more efficient and scale.
Step 2: Use a variety of metrics to measure ROI
ROI for digital transformation for wholesale businesses can be assessed both quantitatively and qualitatively. Calculating ROI can be done simply in the following manner:
ROI (%) = (Expected Revenue - Investment Cost) / Investment Cost
The diagram above is a framework, proposed by PwC, focusing on six key areas: customers, employees, operations, safety and soundness, infrastructure, and disruption and innovation. Besides revenue, some metrics derived from this framework would be the increase in new customers, customer retention and customer satisfaction. Others would be cost savings as your operations will be leaner and more efficient.
Digital Transformation pays
Swee Choon Tim Sum Restaurant, a Singapore-grown eatery, was affected during the lockdown in April of 2020. Sales plummeted as dine-in was not allowed. The owners quickly turned to online sales and partnered food delivery platforms.
Mr Ernest Ting, a third-generation owner of Swee Choon, understood that Digital Transformation was the way to survive the pandemic. From the data collected, the company identified a large population of customers in the East. With this data-backed knowledge, it established a cloud kitchen in Tampines, allowing customers the choice of collecting their orders or having them delivered. Customers can also have their dim sum supplied in frozen packs and enjoy them whenever they want. One can conclude that the ROI for Swee Choon was high.
Contact Zooloo's digital solutions experts immediately for the first step towards Digital Transformation at sales@zooloo.asia.
- Read about The Digital Transformation Journey
- Learn more about our “Digital Backbones”
- Learn more from our eBook series on Digital Transformation for Wholesale Trade
Tags:#digitaltransformation #B2B #digitaladoption #digitalintegration #covid19 #digitalsolutions #wholesaletradesector #wholesaletrade
