Why Digital Advisory Services are Essential for Your Business in 2024

Introduction

Improving operating margins, offering excellent customer experience, and generating revenue are among the most important outcomes of investing in digital transformation.

However, according to a report by Gartner, only 35% of board directors have attained or are on track to attaining digitalization targets. This points to a gap between the goals of digitization and where organizations stand in terms of meeting them.

The digital world is complex, and can be difficult to navigate, especially with seemingly conflicting information. For example, as per a different 2023 Gartner report, 70% of CIOs say that Generative AI (Gen AI) is “game-changing” technology. However, according to the Cisco 2024 Data Privacy Benchmark Study, 27% of organizations have banned GenAI applications.

Companies can gain clarity on their digital transformation strategy – suited to their unique needs – with digital advisory services. Here are the key reasons why advisories are crucial for organizations to leverage.

Why Digital Advisory Services are Crucial

Increasing Complexity of Digital Environment

The business world is not just evolving – it’s growing more complex.

For example, imagine that you run an eCommerce organization. You would need to keep pace with the uptick in mobile shopping, understand how to manage cryptocurrency payments, and familiarize yourself with potential cyber risks.

Adapting to such trends requires more than technical proficiency. This is where digital advisory solutions come in. They help organizations navigate the complexities of the digital landscape, providing clear guidance to shape a digital transformation strategy that meets consumers where they are.

Optimizing Costs

Strategic digital transformation can cut costs by streamlining IT, boosting team efficiency, and managing risks without trying to eliminate them all.

Cost-effective IT upgrades are key to this. By investing in advanced technology, optimizing software licenses, automating processes, managing cloud expenses, and negotiating better deals with vendors, businesses can reduce unnecessary spending.

Identifying and removing underused IT resources further improves cost efficiency and productivity. Digital advisories help guide these efforts, ensuring that every investment drives value.

Uncertainty in Global Markets

Events such as the Covid-19 pandemic and the conflicts in Ukraine and the Middle East have contributed to uncertainty and downturn. The effects are especially negative for developing economies.

Energy companies, for instance, face challenges due to volatile oil prices, geopolitical instability, and regulatory shifts, such as increasing pressure for greener energy sources and policies like carbon pricing.

A digital advisory will provide risk management expertise and invaluable foresight, helping to ensure that the customer experience remains at the highest standards.

Cybersecurity and Risk Management

As digital transformation accelerates, so does the exposure to cybersecurity threats. In 2024, cyberattacks have become more sophisticated, from data theft to ransomware attacks that can paralyze entire organizations.

The annual cost of global cybercrime is expected to reach $15.63 trillion by 2029, making cybersecurity a top priority for businesses.

• Digital advisories help companies assess and mitigate risks. They can implement robust cybersecurity frameworks, such as the NIST Cybersecurity Framework, that protect sensitive data, ensure compliance with regulations like the GDPR and DPDPA, and create incident response plans.
• Additionally, advisors can help businesses adopt a proactive approach to risk management by identifying potential vulnerabilities and addressing them before they become serious threats.

Aligning Strategy With Business Goals

IT strategies should drive business goals, not just support them. For example, a fintech firm might use artificial intelligence (AI) to analyze customer data and provide personalized financial advice.

A sound digital transformation strategy will help to ensure that these solutions are both technically solid and aligned with your overall business goals.

Emerging Technologies

Keeping up with fast-evolving technologies can feel like a never-ending race. For example, a healthcare provider looking into telemedicine must figure out which innovations will last and shape the future of healthcare.

Digital advisories can help:

• Establish the foundations of the technology required for you to provide efficient products and services at scale.
• Modernize, shifting to Software as a Service (SaaS) or cloud, or streamlining technologies to reduce performance gaps and lower costs.
• Investigate record systems, business objectives, and capacity to leverage specific technologies.

Need for Adaptive Approach

Rigid business strategies are outdated. For example, a technology company might move from making software to offering cloud services. This shift changes how they develop products, approach the market, and engage customers.

Digital transformation advisory services can help, providing strategies to improve agility and keep pace with the fast-moving digital world.

Conclusion

Thriving in the digital era requires redesigning processes and empowering the workforce. Digital advisory services are crucial to this.

In a world where technology evolves rapidly and competition grows tougher, having a trusted digital advisor can help businesses position themselves as industry leaders. Silverskills is a digital transformation company with over 20 years of experience. Contact us now to start your digitization journey.