The term digitalization has become increasingly well-used, but is nevertheless difficult to define. What exactly is digitalization? Why should companies digitalize and how can it be done most effectively?
In a world that has become increasingly digitalized, it has become all the more important for businesses to follow digital developments. As a result of the Corona pandemic, many companies have been forced into a rapid digitalization process, a process that has been necessary but also partly uncontrolled.
Early during the pandemic, Microsoft CEO Satya Nadella said that many companies had been forced to undergo two years of digital transformation in just two months. Figures that show how quickly a digital process can happen when the world around them changes, but there is a danger in digitalizing without knowledge and a digital strategy.
But what exactly is digitalization? And how should companies and industries digitalize in the best way?
What is digitalization?
Digitalization is about simplifying and streamlining work processes with the help of digital technology. However, digital solutions are not digitalization itself, but rather the concept is about streamlining manual tasks through the use of technologies.
Concrete examples of digitalization can be seen from how companies have adapted during the Corona pandemic. For example, most physical meetings have instead become digital through the use of programs such as Teams, Skype and Zoom.
Another classic example is also in trade, where digitalization has had a major impact. More and more companies and organizations are choosing to operate e-commerce, which enables the sale of goods and products to a large target group in a cost-effective way.
A digitalization process is often major digital transformations, where companies are actively investing in streamlining their operations through the use of new digital infrastructure.
Thus, digitalization can be simply described as the process a company takes to streamline operations by using new digital technologies.
Why digitize?
Unlike much else that is happening in the business world, digitalization is not a trend, but a new direction that the future is heading towards. Digitalization is a necessary direction for companies and should be a natural part of the business strategy. In this way, companies can increase their relevance and competitiveness in the market. This way, the company can also win important market shares and improve its profitability.
Digitalization streamlines operations with the help of digital technologies through, among other things, time advantages, higher revenue potential, security and improved overview.
In addition, in today’s society, there are high demands from the outside world on digital security and flexibility. If your company cannot meet the demands of the outside world and customers, there is a risk that someone else will. Thus, digitalization of operations is not a trend, but also a long-term and necessary investment.
How does digitalization happen?
Digitalization is not a step, but a constantly ongoing process. Therefore, there must be an operational strategy for digital development that follows the change that is taking place in society.
There are a couple of questions that can be used to gain a better understanding of the digital development of the business.
- Are there parts or processes in today’s business that can be made more efficient with the help of digital technologies?
- Is there potential to enable a better relationship with customers through digital technologies such as mobile applications, online services or social media?
- Could digital tools create the conditions for new products and services?
- Is there room to develop the business model further with the help of digital technologies?
Digitalization requires strategy
In digitalization, it is always important to think one step ahead; it is not enough to invest in new technologies and digital solutions. The most important thing is that there is a concrete plan for how these technologies and digital infrastructures will be integrated into the business in a way that leads to both business benefit and increased efficiency.
Therefore, it is important to review whether you have the right type of competence to digitize. If there are people within your business who have knowledge and experience in digitalization, you should use their competence.
There are also companies that work specifically with the digitalization of businesses that can help you create digital strategies and infrastructures.
Provide it offers the service Digitize right that helps you transform ideas into the right decision-making basis. The service consists of 3 steps and then produces a proper requirements specification with the most suitable technologies for your intended digital solution based on sustainability, flexibility and cost.
Read more about the service Digitize right here.
A step-by-step guide to digitalization:
- Employ people with the right type of skills or hire a company g that can help your company digitize. With the help of a technical partner, you can avoid costly mistakes through proper preparatory work even before investing in an IT project.
- Invest in new and the right technology that enables the efficiency of the business. The service Digitalize right helps you transform ideas into technical decision-making basis.
- Take one step at a time. Create a long-term digital strategy and then take one step at a time to a more digitized business. It is important to remember that digital transformation is a process that is constantly ongoing, and thus not something that happens overnight.
- Create a corporate culture that promotes change. Just as important as having a long-term digital strategy, it is also important to have a corporate culture that promotes change and can thus handle unforeseen changes such as a possible future new pandemic.
- It is always the management team that must drive digital development forward. Lead by example!
For questions or concerns about digitalization and how the Digitize Right service can help your business avoid making costly mistakes when investing in new digital technology, contact us here.