Digitalization can have many benefits for businesses, such as increased efficiency, improved data analytics, better customer service and engagement and the capability to automate processes. Digitalization of business processes also enables companies to experiment with new strategies and concepts in a an environment with low costs.
In the past business data was typed or written on paper into ledgers. To share this information with colleagues you needed to physically mail or fax the document. When computers became popular companies began converting their paper-based records ink-on-paper to digital computer files. This process, commonly referred to as digitization, forms the basis for a variety of tools and business practices.
Increasing Efficiency
Digitalization allows people to perform their work more efficiently and speedily so that they can complete projects and meet deadlines on time. In addition, digitalization can aid businesses in reducing costs by automatizing some processes and allowing employees to focus on important tasks.
Improve Customer Service and Engagement
Information on interactions of customers with services and products can be gathered by companies using digitalization. These data can be used https://cloudycrowd.net/2019/12/06/digitalization-of-a-business-and-its-consequences/ to improve the customer experience, increase revenue, and increase loyalty. Digitalization also allows companies to provide customized services and products to every customer.
It is important to understand the difference between digitization and digitalization. The former refers to the conversion of data into digital form. The latter refers to the process of transforming and utilizing this data in business models and processes.
