Impact of Digital Technologies on Financial Performance of Companies

Every industry is being disrupted by digital 'transformation by accelerating exchange of information and in the process diminishing/eliminating barriers between businesses people and things. This in turn is accelerating the creation of new products and services and defining more efficient ways of doing business. Technology enabled innovations are a common thread across organizations of all types, in every industry. However, digital business transformation is a new phenomenon, and no organization can be considered yet to have achieved the end state of maturity. A significant challenge has been associated with corelating the digital investments with financial performance parameters. The most impactful technological breakthroughs are rarely felt all at once. Individual products or innovations may gradually prove their value, spawn other applications, and eventually become part of a broader platform with the potential to reshape business models. Shifting market dynamics and rising competition drive companies to adopt digital technologies. A techenabled transformation can equip companies to increase revenues, expand margins, and pursue new revenue streams with different business models. Companies are always focused on improving their performance and many companies take an integrated and long-term approach. They focus on creating business excellence programs. Business excellence is a process of improving and strengthening the organization leveraging people, process & technology. In these categories, with recent advances in technology digital technologies have become prominent drivers in organization growth and success. Digital technologies enabled transformation can help companies to grow revenue, to expand margins, to increase liquidity as well as to improve returns on investments. Digital technologies like 'cloud technology, mobility, big data and real-time analytics, artificial intelligence and machine learning, augmented reality, internet of things, API based integration and robotic process automation (RPA)' are becoming key to making an impact across the value chain.