Digitalization can have many benefits for business, including increased efficiency, improved data analytics, improved customer service and engagement and the capability to automate processes. Digitalization in business also allows companies to test new strategies and ideas in a the context of a low-cost environment.
Not too long ago when business data was a majority written by hand in ledgers or copied into paper documents – and if you wanted to share that information with colleagues the process was accomplished by physically delivering the document to another person or by faxing it. As computers became more commonplace companies began converting their ink-on-paper records into digital computer files. This process, referred to as digitization, is the base for many of today’s business practices and tools.
Increasing Efficiency
Digitalization enables people to be more efficient and productive so that they can complete projects and meet deadlines. Digitalization also helps businesses save money by automatizing certain processes, allows employees to concentrate on more important tasks.
Improve Customer Service and Engagement
Digitalization has enabled businesses to collect data about their customers’ interactions with products and services. This information can be used to enhance the customer experience, and increase sales and loyalty. Additionally, digitalization allows companies to deliver customized products and experiences to every customer.
It’s important that you understand the difference between digitization and digitalization. The former is the conversion of data into digital form. The latter is the transformation and use of this data in business models and processes.