The Role of Digitalization and Its Impact on Business Growth
Just look Digitalization around yourself; all you can see is people “smartphone walking” down the streets, with their heads down, eyes glued to the screens, and fingers scrolling down through their social feeds. Turn your head to the left, and you will find a bunch of people standing in front of the digital billboards and scanning QR codes to gain a discount at a fast-food franchise.
We have evolved into a society driven heavily by technology and innovation. Digital evolution has become imperative for businesses to sail through the drastic technological changes happening across the world. After all, continuous development and growth are the keys to ensure positive business results. Be it an educational sector, agriculture, or any other industry, businesses are now striving to adopt digitalization.
With the advent of the internet, social media, and other online channels. Businesses are compelled to reconsider the process of engaging with consumers while simultaneously updating the way they operate and function. The world is now online. Hence, it has become imperative for businesses to go online for the sake of their survival.
According to John Chamber of Cisco System, at least 40% of companies won’t be able to survive the next ten years if they failed to transform their entire operations to accommodate the latest technologies.
Well, there’s no surprise that digitalization is the foremost priority for many companies. About 87% of global company leaders recognized digitalization as an essential aspect of growth. But only 40% of businesses have fully embraced the digital initiatives. This major discrepancy is a result of a lack of a real vision that is shared through the companies. And if left unaddressed, digitalization initiatives will continue to struggle.
What is Digitalization?
As mentioned by Dissertation help online, digitalization refers to improving and enabling business processes and operations through the adoption of new technologies and innovation. It increases efficiency and productivity by reducing costs. The concept of digitalization, also known as digital transformation or digitization, is based on the use of digital technologies that boost and streamlines your operations, from your company to your internal processes.
With digitization, your aim is to achieve the advantages of digital transformation that include boosting your revenue, improving your consumer experience, and gaining an edge over competitors.
Digitalization has brought great success to many companies. Here are a few examples:
The Coca-Cola Bottlers’ Sales and Services (CCBSS) embraced a significant transformation in the way of communication. They digitize the data of about 72 bottlers from North and Central America. Which saves the brand a whopping $1million each year. Thanks to Ripcord, the first robotic digitization company, the company was able to realize these massive savings by processing documents and records faster and with great accuracy. By embracing this change, the company has invented a system for digitizing 25 million documents every year, resulting in millions of worth of savings and time efficiency.
Audi, a member of the Volkswagen Group, wanted to offer their customers an accessible buying experience. Where they can explore and view their products with ease and comfort. For this purpose, they introduced an all-digital showroom called “Audi City,” allowing visitors to access and explore all the vehicles available. With the help of this initiative. The car manufacturer company observed instant results of digitalization. With sales rising up to 60 percent in the city of London alone.
While digitalization may be a complex process to take on, it can bring great profits and payoffs if implemented strategically. Here are some key impacts of digitalization on businesses:
It streamlines the operations and processes
Digitalization offers great opportunities to streamline businesses processes, which are redundant and time-consuming such as data storage, analytics, and communication. The use of the latest technologies can make tasks more efficient, collaborative, and attainable. This results in increased returns and brings welcoming outcomes.
According to a recent survey, about 40 percent of the executives recognized “improved operational efficiency” as one of the top benefits of digitalization. With the aid of digitalization. Companies can grow faster and would be able to invest other resources into further advancement and betterment.
It improves customer experience
Customers make up the driving for any business; they are the essence of it! Therefore, customer experience plays a significant role in determining the success of a company. It has been seen that digital companies have more improved customer experience to offer than companies that are still operating traditionally. Since digitalization makes business processes more collaborative and swift, digital companies are in a better position to provide relevant and compelling products to their customers.
According to Qualtrics, a business that makes $1billion annually has earned an additional $700 million during the course of three years only by investing in customer experience. Not just that, about 66 percent of a business’s competitive edge drives by its customer experience. Digitalization allows companies to treat their customers as a person rather than a number, which is the key to winning their businesses.
Empowers the workforce!
The workforce is the soul and heart of any company! They are responsible for keeping your business afloat. Hence, it’s important for companies to make their employees tech-savvy and digitally efficient.
Digitalization and technological improvements allow employees to be more productive and on-their-toes in their daily tasks. They can function well and bring favorable results for the company’s betterment. Digitalization enables employees to capitalize on their efficiency by using AI-powered tools. This results in a boost of their morale and confidence.
To summarize, digital is the future of business. This is the era of digital, and it demands businesses to become agile and quick to adapt to new transformations in their environment for successful results. Digitalization proved to be beneficial for businesses in terms of generating profits, streamlining business operations, empowering the workforce, and improving customer experiences.