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Digitalization and how it affects the business

Digitalization and how it affects the business

The product evolution took centuries through Mechanization, decades through Electrification, years through Electronification and but now it takes just months or weeks through Digitalization. All sectors are being heavily impacted by the digital tsunami. With the wave of digital transformation, many organizations have started to alter themselves towards digital transformation as they understand that it is not something to be left for tomorrow. So what exactly is digitalization?

Digitalization is all about using digital technologies to find new opportunities and revenue streams for better business. As more and more individual companies become ‘digital businesses’, the consequence on the wider economy will be far-reaching and insightful. More and more companies are embracing advancement, ensuring effective customer engagement, bringing in fresh ideas, futuristic thinking, and allowing a company to make well-informed decisions as a collective whole.

Because of digitalization, customers are able to do what they want faster. Online transactions can take place in the matter of a few seconds with products being delivered to the door very quickly by the drones. The true prospect of digitalization can be achieved only when the organization integrates electronic/digital components vertically and/or horizontally. Thinking what can be digitalized within a product is only a first step. Once part of the product became electronic and digitalized, it becomes possible to integrate some of the electronic parts digitally within the product. It is also possible to virtualize them in a central location, say cloud, to integrate across the products which result in endless possibilities and numerous benefits.

Digitalization and how it affects the business

 

Digitalization increases employment:

Digitalization alters all existing jobs, demanding new skills to carry out new tasks, which may imply the current workforce to be retrained from those who already have required skills. Digitalization gives rise to new jobs. With the rise in digital transformation and the emergence of on-demand economy have enabled new forms of employment, i.e.: online and long distance, they severely affect how work is organized and how employer and employee interact with each other. Digitalization creates demand for various opportunities to grow and establish new branches of business.

Digitalization increases productivity:

Digitalization reduces the repetition of effort because once data is created and recorded it can be smoothly transferred and reused. That saves money; makes digital businesses more cost-effective, and helps the economy develop rapidly. And once businesses become digital, they often find they can move their technology and proficiency across various sectors with a very little effort because the obstacles in the doorway are easier to conquer.

Digitalization helps with publicity:

Digitalization alters marketing in various ways.  Companies can reach niche target areas with minimum price and get an immediate response to their offers, letting them to fine-tune their approach or message very quickly for best possible effect. This allows smaller companies to really cut their path above their weight against bigger, more established companies, by offering a better, faster and more responsive service.

Digitalization remodels the organizations:

Because of digitalization, companies are now reinventing themselves. There is a boom of virtual business in the market, made entirely of remotely working teams using cloud technologies. In a situation like this, it is very difficult to survive if an organization isn’t a ‘digital business’. That’s why more and more organizations are integrating with cloud-based services, like ours, to help them in are such as Analytics, Mobility, AI integration, Cloud Based services and support. After achieving digital transformation companies have a much better understanding of which digital technologies are the right ones for them to be using next. Here is an example of digital transformation framework of an  organization.

Digitalization includes all features of commerce, despite of whether it concerns a digital business or not, in times when the speeding up of technological advancements leads to entirely new market, consumer and business , existence, opportunities and new questions, ultimately leading to a new economy.

Every aspect of our lives today are digitalized. Business models, processes, even customers are digital. However, some of the business giants still don’t think in “digital terms”. They face real problems with customer retention and customer loyalty, and end up losing their customers;  they also face issues  while trying to engage with their stakeholders on a digital level. Nowadays, the size of business doesn’t matter. What matters is their agility and the competence to transform themselves that gives companies a constant edge to battle in a digitalized world.

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