HomeBUSINESSImportance of Digitizing a Company

Importance of Digitizing a Company

Our society is becoming more and more digital. Productivity is increasing and great competition makes digitalization unavoidable. The focus is on user-friendliness and fast interaction between companies and customers. This not only improves the product itself, but also saves costs in the long term. This trend offers great opportunities, but also many challenges. The following describes what is meant by digitization and how you can use it for your own company.

What is meant by digitalization?

In its basic meaning, digitalization is a process in which physical data is transferred into a digital format. This digital information consists of ones and zeros, the transmission occurs without losses and the data cannot be distorted. This information is used and processed globally by various communication networks. Recently, the term has become more of a collective term for the use of digital information. This allows processes to be made more modern and improved. Writing a text in Word is just as much digitalization as uploading it to a cloud and sharing it with other people. This makes a lot of things more flexible, but also sometimes more complex.

That’s what digitalization is all about

New technologies have incredible power and can completely transform entire industries. Anyone who doesn’t adapt can quickly be pushed out. Digitalization is not about replacing analogue products with digital ones, but rather about using the potential of these new digital possibilities and adapting them to your own business model. Physical processes can be replaced by new solutions, which advances business models and changes the structures of companies. Networking and exchanging information is becoming increasingly important and customers can be reached better. Find a partner for the digitalization of companies so that the transition works smoothly.

Innovation through new technologies

New technologies are driving digitalization ever further. The use of a cloud is now established, but the use of artificial intelligence is not yet everywhere. Cloud computing is currently the most important digital technology in use, followed by big data analytics. If you want to continue to grow in the future, you have to use these technologies, which in the future will also include virtual reality, blockchain and now 3D printing. The pace is increasing enormously; most companies cannot adapt so quickly. However, there should be continuous change.

Many companies find it difficult to digitize

Around two thirds of the companies in Germany that offer products via physical channels have already started their digital transformation. Six factors are particularly important: leadership, people, agility, business integration, ecosystem and value from data. These are the digital muscles of a company and companies that have already carried out successful digitization projects were particularly strong in these fields. The focus is on agility and employees, as traditional companies in particular find it difficult to transfer internal processes into a digital form.

Reasons why digitization is so important

Better workflows, more efficient work, higher product quality and new services are just the tip of the benefits of a digital company. You also become significantly more competitive and you can reach more customers more easily and quickly. But working conditions also improve through simpler processes and the willingness to innovate increases. Only those who keep up with the times will have a long-term chance. That’s why you should always keep up to date with the latest technical innovations .

Advantages and disadvantages of digitalization

Digitalization creates spectacular value for the customer, but not for the company. Economic rent is virtually destroyed. In addition, monopolies are promoted, which, for example, are the only ones with access to a certain technology, and the duality of the processes is lost. But manufacturing processes are also improved, products come to market more quickly, customer feedback can be processed quickly, things become more transparent, supply chains are upgraded and production costs less money. Overall, each company should decide individually how quickly the digital transformation will be carried out, the only important thing is that it happens.

Also Read: The Five Necessary Tools For Business Digitization

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