Business digitalization impacts include greater efficiency, better data analytics, better customer service and engagement and the capability to automatize processes. Digitalization of business processes also enables companies to test new strategies and ideas in a a low-cost environment.
In the past, a majority of business data was typed or written in ledgers. To share the data with colleagues, you had to physically deliver or transmit the document via fax. As computers became more widespread numerous companies began to convert their paper ink documents into digital files. This process, commonly referred to as digitization, is the basis for a lot of modern tools and business practices.
Improve Efficiency
Digitalization lets people work more efficiently and quickly, making it easier for them to finish projects and meet deadlines in time. Digitalization can also assist businesses save money by automating certain processes, making employees focus on more important tasks.
Improving Customer Service and Engagement
Digitalization has enabled companies to collect information about their customers’ interactions with their products and services. These data can be used to enhance the customer experience, and increase customer loyalty and revenue. Digitalization also allows companies to provide customized products and experiences for each customer.
It is crucial to know the difference between digitalization and digitization. The former is the conversion of data into digital form. The latter is the use and transformation of this information in business models and processes.