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Business Digitalization has become a buzzword that everyone seems to be talking about lately. So what is business digitalization and why should we care? In short, business digitalization is the act of making existing processes more efficient and cost-effective, while also increasing productivity and profitability.
If you’re like most people, you probably understand the term without really knowing what it means. That’s understandable because the concept of business digitalization and the entire digital world have evolved at a breakneck pace over the past few years. It’s now a permanent, everyday part of our lives. Companies in various industries are trying to embrace business digitalization because it has become priorities as businesses have shifted towards hybrid work and customers increasingly embraced online channels.
The bottom line: It’s important for businesses of all sizes large or small to invest in digitalization because it will help them grow and adapt to the digital era.
What is Digitalization?
Digitalization is the adoption of digital technologies by individuals, businesses, and organizations to enhance their work speed, efficiency, and overall value. This process is especially significant for businesses, offering them the potential to save time and unlock new opportunities for growth.
Digitalization employs digital technologies to transform a business’s internal operations, creating opportunities for new revenue streams and added value. This process includes converting analog information into digital formats and optimizing various processes within companies through the use of cutting-edge technology and tools.
The best way for companies to achieve digital transformation is through a process called digital agility. It’s important for companies to keep up with changes in technology so they can remain competitive in the industry. Business Digitalization requires businesses to analyze their current situation and figure out how they can create a new process that helps them maintain their competitive edge in an ever-changing era.
Why Should Companies Care About Business Digitalization?
Netflix serves as a prime illustration of digitalization’s impact, initially launching as a DVD rental service. By harnessing cutting-edge technology, utilizing data analytics, and transitioning to digital video, Netflix crafted a distinctive value proposition in the online movie streaming market.
The outcome of this strategic digitalization? Netflix has become a behemoth in the industry, amassing $31.6 billion in revenue in 2022.
It gives them a competitive advantage. By investing time and money into their digital transformations, companies can take their business to the next level by leveraging this new technology to reach more customers.
A good way for businesses to help themselves stay ahead of the game is by developing an online presence that stands out from the rest. In order to do that, companies need an effective digital marketing strategy so they can reach their target audience in ways that are engaging and useful.
3 Tips for Successful Business Digitalization
To make the most of this digitalization in business, you need to understand what strategies will help your organization be competitive and lead in the digital world. Here are 3 tips that may be worth considering:
1. Identify rooms for improvement
Here are a few tips to help you digitalize your company as soon as possible. First, identify the core processes that make your company tick. For example, if you sell products online, you can start by automating the checkout process. Next, identify the weak links in the chain. For example, if you sell via email, you can start by upgrading your communication channels. Lastly, start small and focused such as website branding or try using Facebook ads to sell your products, because digitalization is a marathon, not a race.
2. Get your whole company on board
Once you have identified areas of improvement, make the company a whole to support your digital business endeavors. Prepare a detailed business case that is backed by facts and figures, showing what your company as a whole will gain from this new project.
3. Integrate with an already existing system
Keep in mind that the business digitalization project is not about replacing legacy systems with new ones. It is about finding the best way to work with what you have and make it work better than it did before. Digitalization is not about creating new systems. It is about making better use of what you have.
So? Are You Ready to Digitalize?
Businesses are being forced to change or die. New technologies allow companies to be more efficient and grow their profits, so they must embrace these changes in order for their business operations, processes and culture to survive.
Looking for business digitalization? We, Pixie Digital have over 8 years of experience in Digitalization Service for Business to Business and Business to Consumer models in various industries. It’s great to be seen doing great work for our clients and achieving both the performance and business goals that they have.