How to digitize your business: definition, procedure and benefits
Today, the process of digital business transformation is undoubtedly a key to success for any enterprise.
Such innovations make it possible to remain competitive in a market where people have already fully embraced digital reality in their lifestyle and consumption habits.
That is why it is essential for business leaders to rethink both the internal organization of their company, but also their marketing and growth development strategy, through a digitally oriented business model.
What does a company's digitization process consist of? And what means and resources are needed to complete this transition to the digital universe?
In our article you will find an analysis of the phenomenon of digital transition and the process of corporate digitization.
Corporate digitization: definition
It is not easy to give a precise definition of the digitization process of a company, as it is a broad concept that approaches the transformation of the corporate structure and organization.
Broadly speaking, we can define corporate digitization as that process that contributes to the transformation toward a digital arrangement of all business processes, from interactions, to communications and beyond. Business functions and business models must also be revisited through the magnifying glass of new technologies and big data.
From analog to digital
The digitization process aims to eliminate all those business processes that rely on traditional business models, also called analog. The end result of digitization should be the creation of fluid work systems and processes and greater automation of activities and procedures at any level of the business organization, viz:
- marketing sector
- sales sector
- customer care sector
- distribution sector
- production sector
Digitization ≠ dematerialization
Dematerialization means that process which leads to the conversion of all paper business documents into digital documents, available in different file formats. For this reason, dematerialization is a separate and different concept from digitization, which, on the other hand, involves a total change in the method of business work.
We can say, however, that dematerialization is not a concept unrelated to digitization, but one of the processes that is part of the strategies and procedures toward a digitization of your enterprise.
Digitization and new work spaces
The digitization process involves a shift of physical workplaces to a digital space: all processes take place via the network in a 100% virtual environment in which the physical office has no reason to exist.
Corporate work finds new work environments: all social interactions between co-workers, clients and employees take place via video conferencing, video chats and collective social networking platforms.
The 4 pillars of digital transformation
Nowadays we are experiencing an unprecedented rise of the digital component in companies. In fact, in order to secure a prominent place in the market, it is necessary for every company to engage in technological innovations in order for it to remain competitive and profitable.
If you have decided to embark on the digital transformation process, it is time to get acquainted with SMAC. Through social, mobile, analytics and cloud, you will be able to embrace the inevitable digital transformation taking place without too much difficulty.
SMAC: Social, Mobile, Analytics, Cloud. What it means.
SMAC is an acronym consisting of 4 letters that refer to as many terms. These define the 4 technology components that translate the main market inclinations in terms of digital transformation of companies. The terms that the letters of SMACS refer to are:
- Social,
- Mobile,
- Analytics,
- Cloud.
In concrete terms, these terms correspond to the 4 IT investments that must be made to ensure that a business remains competitive in the marketplace. Therefore, they are also indicators of the maturity or technological inadequacy of a business.
Through the inclusion of these parameters, the entire enterprise and its operation can be adapted to (sustainable) market trends. From the advantage brought will benefit both customers and users, but also the employees themselves!
The technologies of the digitization process
The digital transformation of a company cannot take place without the use of hi-tech collaborative tools and platforms. But digitizing a company does not mean adopting all the latest technological breakthroughs that the market offers. One must know how to choose carefully and thoughtfully:
- the technologies the company needs
- the level of digital skills of the company's employees
- the corporate budget made available for technology investment
For a successful digitization process, all cloud-based software is a great solution for any type of business, whether for quick communication or working remotely. The google G-suite or Onedrive are a great tool for sharing and storing files because of the ability to use the large storage capacity of the cloud.
Software for digital communication such as Skype, Google Chat, Zoom or Teams are essential. They are simple and easy-to-use communication platforms that encourage greater collaboration and mutual exchange.
To facilitate automation and simplify business dynamics, management or ERP systems are of utmost importance.
With these software, your company can easily manage, account for and keep track of all the most important activities of a business, from logistics to accounting.
Added to the above systems are all CRM and CMS platforms related to customer care management and digital content production.
As we have repeated many times, the number of new technologies introduced is not the successful element of the digitization process, but the way they are managed and connected in a 100% digital mode.
What are the benefits of the digitization process?
Deciding to digitize one's business is not easy, but the benefits of doing so are countless. Business processes become faster and more performant, production times are reduced exponentially, and workers feel more involved in the process of producing added value through continuous updating processes.
Let's go through the benefits in detail.
Zero room for inefficiencies
Business models that are digitally oriented aim to create a more flexible and efficient management system through workflow that is partly automated.
Of increasingly satisfied customers
Digitization and automation of business processes help to improve the efficiency levels of the service offered to its customers, recording an increase in satisfaction and positive feedback. In fact, digitization makes it possible to simultaneously manage the countless requests that come from customers: the different communication touchpoints improve the customer experience and interaction with your company.
Innovation in constant updating
A company that has decided to embark on a digitization process has decided to embrace the development of new technologies and professions at the same time. The digital set-up enables your company to adapt more easily to changes and new innovations, while remaining competitive in the competitive marketplace.
Decreased level of risk
A company operating in a digital environment has a decrease in risks and errors. And the moment errors do occur, the processes established by digitization enable the rapid identification of causes and solutions to problems encountered.
More effective communication
The change brought about by the digitization process involves communication between employees, suppliers and potential customers. The latter, from passive subjects, become active players in this communication process, collaborating four-handedly with the technologies implemented by digitization.
The creation of new opportunities
If your company is digitized, your business processes will be more efficient and competitive. You will have more time to devote to new projects and seize new opportunities to increase the company's profit. Decision making actions are simplified and can be based on a system that collects data and information digitally.
What are the costs of corporate digitization?
In the face of the countless benefits that digitization brings, it must be kept in mind that there are costs to be incurred in order to complete this transition process to a digital company.
Before proceeding to analyze the costs of digitization, it must be remembered that the digitization process for a company is not about catching up with new technologies, but choosing technologies that are in line with the needs of the business. For this reason, digitization should be considered a new horizon of profit and gain to make one's enterprise innovative and competitive in an ever-changing and increasingly global market.
What, then, are the costs of this upgrade to digital?
Equip yourself with the right technologies
The digitization process cannot be complete without the acquisition of new technologies and large investments in IT systems such as management or ERP software, IoT systems, 3D printers, cloud-based platforms and ultrafast fiber connections.
All of the items mentioned are the main source of expenses to implement the process of business digitization.
Having a competent staff
Once the company has the right technologies, it also needs to have employees who can properly use the tools behind digitized management. The next step, then, is to look for people who have the skills required for a 100 percent digital environment and are able to make the most of it.
If the costs of hiring staff are too expensive, the alternative is to offer training courses to existing staff so that they can learn about the new digitization methodologies.
In both possible scenarios, apart from the economic cost, there is also a cultural cost. In fact, the digitization process entails a strategic and managerial cost, that is, a change of course from traditional business models leading to a digital and innovative environment. The corporate mindset is completely changed, as is the corporate organizational chart.
This change must start at the top management level so that it comes to affect the entire company. There is no point in hiring highly qualified personnel if the top management of the company is unable to point the direction toward this digital change.
What about you, do you feel ready to face this challenge?
Article translated from Italian