Digitalization has a variety of implications for businesses, such as increased efficiency, improved data analytics, improved service and interaction with customers and the capability to automate processes. Business digitalization also allows businesses to explore new strategies and ideas in a a low-cost environment.
In the past business data was typed or written on paper into ledgers. To share the data with colleagues, you needed to physically mail or fax the document. As computers became more common, many organizations began to convert their ink-on paper documents into digital computer files. This process is referred to as digitization, and it’s the basis of many modern tools and practices in business.
Increasing Efficiency
Digitization allows people to be more efficient and productive which makes it easier for them to complete their tasks and deadlines within the timeframes they need to. Additionally, digitalization could help businesses reduce costs by automatizing some processes and freeing up employees to concentrate on more important tasks.
Improved Customer Service and Engagement
Information on interactions of customers with products and services can be collected by businesses by using digitalization. These data can be used to improve customer experience, increase revenue and improve loyalty. In addition, digitalization enables businesses to provide personalized products and experiences to every customer.
It is crucial to know the difference between digitization and digitalization, as the former refers to converting data to digital form and the latter involves the use of that data to drive change in business processes and models.
