Digitalization can have many benefits for business, including greater efficiency, improved data analytics, enhanced customer service and engagement and the ability to automate processes. In addition, digitalization of business enables businesses to run inexpensive experiments with new strategies and ideas in a risk-free environment.
In the past, most 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 commonplace and widespread, many organizations began to convert their ink-on-paper records to digital computer files. This process, commonly referred to as digitization, is the base for a lot of modern tools and practices in business.
Increasing Efficiency
Digitalization lets people be more efficient and productive, making it easier for them to finish projects in time. Digitalization also helps businesses save money by automating certain processes, making employees focus on more important tasks.
Enhancing Customer Service and Engagement
Digitalization has enabled companies to gather data on their customers’ interactions with their products and services, which can be used to improve the customer experience as well as increase the loyalty of customers and increase revenue. Digitalization also allows companies to provide personalised products and services to each customer.
It is crucial to know the distinction between digitalization and digitization as the former refers to converting data to digital form and the latter refers to the use of that information to drive transformation in models and processes for business.
