why digitalization is important for companies nowadays

  • Blog
  • December 20, 2020

Some things in life are optional, other things are mandatory. Businesses with digitalized processes are cheaper to operate. Read more in the article “Digital disruption has only just begun”. Leaving manual typing and other laborious processes to technology frees up employees’ time – time they can spend on optimizing customer relations, sales and other activities that create growth. In a day to day basis, almost everybody digitizes something, from encoding handwritten notes into Microsoft Word, or scanning hard copies of documents into a PDF format. The savings you will make depend on how labor-intensive your business is. Companies need to develop digital strategies and focus on what are the key success factors of digital transformation. When that’s the case, scaling isn’t only expensive, but also difficult, as you need to find people with the right skills. The best thing about collecting data with digital business solutions is that it’s relatively easy. In order to stay relevant in an ever changing market, it is important to stay up to date with customer demands as well as market evolution. This phenomenon happens in all companies nowadays, even though some may not realize it. The digital movement has great advantages and companies who understand how to exploit it to their advantage can achieve significant savings, increased productivity and better insight into their data. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Digitalization of business helps to improve the efficiency of its process, consistency, and quality. Digital services eliminate unnecessary processing and time wasted as well as solving tasks faster and with fewer errors. We expect digitalisation to have a fundamental and lasting effect on society which is comparable to the invention of the steam engine, the introduction of assembly line … Business digitalization: How much do companies spend? Why digitalization is so important for local businesses Digitalization has had a profound effect on the commercial landscape of the USA. According to the IDC forecast, global diital transformation gspending will grow 17.9% year over year in 2019 and reach 1.18 trillion dollars. Digitalization allows you to improve your workflow and make your team work together more efficiently. Since the invention of the computer, it has made everything easy and digital. In this article, when I say digitalization, I am referring to the process by which organizations move from the typical analog to digital processes. When done right, it can make a business more efficient, more sustainable and more profitable. “Today, all retailers are under severe pressure. Collaborating on tasks is easier with digitalized business processes. There are many reasons why companies are making this change, some are moving because they need to gain speed and agility, others are moving because they want to save cost, others are moving because they want a global reach, etc. Not only is scaling your business easier in this case, but it’s also better in terms of quality. You also have the option to opt-out of these cookies. Your team can easily coordinate work and see what everyone else is doing. This big-picture view is essential for success. Working with facts instead of assumptions significantly increases the effectiveness of any business strategy. Physical receipts fade quickly, the text becomes unintelligible, they get lost easily and take up a lot of space in the archives. Many businesses are now transitioning online in a bid to streamline the management and day to day operations. When used intelligently, the digitalization of business can lead to a significant increase in productivity and can reduce some costs. Collaborating on tasks is easier with digitalized business processes. It impacts the basis of business functionality and determines the way business is now managed today. The purpose of digitalisation is to enable automation, increase data quality, and … The following are six reasons why digitalization is a must for any business that wants to succeed and remain competitive. Digital business, as it relates to business technology, offers companies and individuals new ways to connect, collaborate, conduct business, and build bridges between people. No matter how much training you provide for your staff, this is something that you can’t avoid. This format presents data that is represented as bits or bytes. According to the Danish Accounting Law, companies must retain documentation for at least 5 years, however documentation can legally be stored electronically! Hail the era of indirect sales. Read more in Danish here. And that’s why you need to keep up. Digitalization means the use of digital technologies and of data (digitized and natively digital) in order to create revenue, improve business, replace/transform business processes (not simply digitizing them) and create an environment for digital business, whereby digital information is at the core. It is extremely important, not only because of its rapid growth but also because it is essentially the future of marketing. Often, the main goal of digitalization is to satisfy the needs of the consumer, which are changing along with the development of technology, namely, the creation of a more comfortable and efficient interaction between client and company. Another benefit that comes with digitizing business process is better insights. Our solutions scale with your business, so you can focus less on the technical issues, and more on growing your business. As more companies adopt smart digital solutions, you need to do the same to be able to work with them. Things like tasks distribution and progress tracking are easy with the cutting-edge solutions that are available today. – It encourages innovation People nowadays are only expecting comfort and quality. The effect of these mistakes can vary from minor to disastrous, depending on the industry that you are in. Digitization, by its essence, refers to the conversion of information like pictures or sounds into ones and zeroes or a digital form that can be stored, processed, and transmitted by computers. The insights that you get about your business opens the door for different types of improvements. Digitalization in many cases proves to be a prerequisite for success nowadays. Acubiz is a fintech company that work with optimization of processes and sub-processes within Expense Management. That’s why combining a skilled human staff with digitalized business processes allows you to reduce human-caused errors to a minimum and help your business perform better. Placing data and analytics at the center of a digital transformation strategy will allow businesses to take advantage of big data. Acubiz has compiled a list of 5 reasons why increased focus on digitalization is an important step to company growth. While such changes will not happen overnight, they certainly are already happening. Companies are having a much more difficult time adapting to digitalization. 1. In the competitive world of port agencies, this level of efficiency can mean the difference between thriving and being out of business. And you’ll find increased importance of digitalization in business today more than ever. Talking in terms of business, Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it … Digitalization is unavoidable in this quest. All rights reserved. Acubiz has compiled a list of 5 reasons why increased focus on digitalization is an important step to company growth. Unless your business is ready to handle the requirements of similar technologies, you’ll find yourself offering services that are no longer relevant to the market needs. The Importance of Digitalization. Once you have the right tools set up, you’ll see your business as you’ve never seen it before. Digital transformation is changing the way you conduct your business. This is especially true if you are a business with many small details that need to be taken care of. With a solution like Abraxa, full digitalization is no longer a difficult thing to achieve. When you digitize your business processes though, scaling works differently. And there are advantages to doing just that. Human mistakes are inevitable. You can easily know what processes need to be improved, which ones are working well, and direct your resources accordingly. Using creative digital solutions gives you a competitive edge in your business world and a proper digitalization plan can help reinvent processes, improve quality and promote consistency. February 25, 2014 Dr. House in the medical drama “House M.D.” sometimes ruminates over medical mysteries or rants wildly, while reviewing his patients’x-rays or other images on an x-ray view box. Some of the best ways to achieve this are: Knowing which metrics are most important to company success – the key to getting impact from data is knowing what your organization wants to get from it. Essentially, it is about customer convenience and this applies to the entire customer journey. The digital race is becoming ever more competitive and companies risk being left behind if they do not evolve and keep up with the digital developments. Expands global reach. Helps you stay ahead of competitors. Digitalization can also do this. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Increases conversions. Teams that don’t work well together rarely see any success. The reason why digitization plays such an important role in the business world is the fact that it makes work much faster, smoother, and efficient. What was science-fiction technology a decade ago is now outdated. Retaining documents electronically makes them easy to retrieve and ensures that they are readable! It is the using of new ideas that lead to the making of any new products, services or processes. Digitalization has become one of these mandatory things that any business has to do. Transparency is a central concept in digitalization because companies gain more control over, and insight into processes and data as well as the tools to analyze these. The digitalization is also connected to the automation of internal processes of the company, the goal is to become more efficient, lower expenses and increase the sales. Since most of the work you do is digitalized, you can easily scale your business to accommodate more clients. They don’t sleep or forget no matter how long they work. Customer demands are increasing, customers have less time and less patience – decision making is fast and dealing with companies should be easy. Several studies point to a positive correlation between productivity and digitization – e.g. This shift is powered by a new wave of technology that allows companies of all shapes & sizes to be more strategic and efficient. You can’t use old-fashioned corresponding methods to communicate with an autonomous vessel, which will become the norm in the near future. Digitalize or risk being left behind. This is one of the reasons why companies should proactively leverage social media marketing tactics to drive their branding efforts. It: Saves cost. This results in varying service quality and your business reputation can take a hit as you scale. 6 Reasons why digitalization is a must for any business. Online businesses have provided the customers with service which has made the customers satisfied with the deals they are getting into. Why is the digitalization of your business important. Your team can easily coordinate work and see what everyone else is doing. This is one of the many benefits that come with using modern technologies. It is mandatory to procure user consent prior to running these cookies on your website. If you’re a business owner who hasn’t digitalized their business processes yet, you are missing out. The more you digitalize, the fewer variables you have and the lower risk you assume. Why Manufacturing Digitalization Matters and How Countries Are Supporting It BY STEPHEN EZELL | APRIL 201 8 This report explains how digitalization is transforming manufacturing globally, detailing what exactly smart manufacturing (or “Industry 4.0”) is and examining the productivity impacts that digitalized manufacturing promises to deliver. Digitalization Benefits The reason why companies are moving towards digitalization is simple. Innovation is the cornerstone of sustained economic growth and prosperity. Pierre Nanterme, CEO of Accenture says that digital is the main reason that over half of Fortune 500 companies have disappeared off the list since year 2000. Digital technologies are something that every business needs to take advantage of. The old “paper-based” methods can’t keep up with the current pace at which the world is evolving. Digital transformation is not just about embracing new technology, it is about a change in thought and organization culture. Digital transformation is an essential step for improving and creating new operating models. Even the maritime sector- which has always been known for slowly adopting new technologies- has realized the importance of this change. The ways to boost your brand via social media are by tweeting, blogging, posting recent wins, press releases, new products or services, job openings and key promotions and hires. When you’re developing a long-term strategy for your business, you need to be sure that you have solid facts to work with. Everyone wants to rush off to buy only Smartphones now, which provides them access to end number of website, applications. However, there is still room for improvement – business models need to be challenges and traditional ways of doing things must be revised in order to keep up to date. Gathering information from different connected digital systems is much easier than doing the same thing with traditional systems. The Importance Of Digitalization Digitization is a process of converting information from the normal form into a digital (computerized) format. Making mistakes is a part of what makes us human. To learn more about the laws for document retention in the EU, read the report “European Document Retention Guide”. By Lisa Caprelli, Author of Unicorn Jazz children’s unicorn book series; Director of Unicorn Jazz Presents The Thing I Do – now on its first season on Amazon Prime!. Consequently, before articulating a strategic digital vision, it is important to understand the difference between digitization, digitalization and digital transformation, all of which implies a massive change in business practice: Many companies have already learned this the hard way. Digital technologies are something that every business needs to take advantage of. Necessary cookies are absolutely essential for the website to function properly. The higher the human factor in your business processes, the more mistakes you’ll get. Sadly, the process of using the digital benefits, is still in its beginning. Despite the initial setup cost of any digitalization process, the savings that a company makes over time outweigh these costs. Find and download ebooks, whitepapers, webinars and much more within Expense Management. For example, if you have a port management agency, digitalization can help you operate with fewer agents. Here at Acubiz, our experience is that customers achieve more control and insight by using digital services. This is due, in part, to the fact that manual typing takes time, costs money and removes focus from companies’ core services. By clicking “Accept”, you consent to the use of ALL the cookies. It is important to remember that it is the information you’re digitizing, not the pro… More and more companies are embracing digital strategies, and thereby taking advantage of opportunities for streamlining their processes. When you digitalize and automate as many tasks as possible, your monthly operational costs will drop. Asides from making businesses better and more efficient, digital processes are changing the core fundamentals of how companies work. Asides from taking unnecessary time to complete, these tasks also make collaboration more difficult. Everything from customer-supplier management systems to blockchain-based solutions is being adopted at a wide scale. Scaling a business can be difficult. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. It’s like speaking a language that nobody else speaks. Using platforms for communication are part of our daily life. These cookies will be stored in your browser only with your consent. the study “ICT, Innovation and Productivity Growth“, made for the Danish Business Authority, which has shown that productivity grows on average 2,4 percentage points faster in companies who focus on digitalization. Increases interaction with customers. Alongside business innovation, digitalization – the development of digital innovations – is one of the most important business trends for the future of the economy. It will also allow your existing agents to get more done in less time. Copyright 2020 @ Abraxa Group. Helps in achieving mission and vision. The Digital Accountancy – Part 3: Why your bookkeeping practice is important, Working from Home: How to keep your administrative business processes intact. There are many reasons why companies are making this change: Save Cost; Global Reach These cookies do not store any personal information. In order to stay relevant in an ever changing market, it is important to stay up to date with customer demands as well as market evolution. But opting out of some of these cookies may affect your browsing experience. The more digital technology becomes available, the more that business digitalization becomes the norm. Manual workflows are full of redundant tasks that are pulling your business down. Hiring new staff members is a risk by itself since you cannot guarantee the performance of every single one of them. Unlike humans, machines don’t make “mistakes”. Digitalization has long become an intimate part of our daily routines outside the workplace. Companies today are requesting tools to ease administration while increasing efficiency, more than ever before. Read more about how Louis Poulsen made their processes surrounding expense management more effective here. This is why tech- and business analyst Jan Horsager says that transparency is the core of digital and that it gives an invaluable insight which, when used correctly, can become a significant source for innovation. Digital Transformation in … Understanding Digital Transformation . This category only includes cookies that ensures basic functionalities and security features of the website. We are living in an era of Digitalization. Digitalisation is the process of converting information into a digital form. Companies today have optimization and digitalization of internal processes high on their list of priorities – and the same is true when companies look at how to make services aimed at customers more efficient. You will also free up more of your time to put your mental effort where it matters most. Digitalization allows you to improve your workflow and make your team work together more efficiently. Technology has helped companies to improve in these areas throughout the years. The Yara Birkeland – the world’s first fully autonomous cargo ship- will make its first trip in 2020. Business digitalization has many benefits. While online retailers were initially dismissed as a niche option for computer nerds, e-commerce sales continue to rise dramatically. It is the promotion of products or brands via one or more forms of electronic media. We also use third-party cookies that help us analyze and understand how you use this website. Gone are the days of direct sales. Why is digitalisation so important? Sticking to the old ways isn’t only hindering your business’ growth, it’ll leave you isolated. Digital technologies are revolutionizing many industries, including the maritime sector. Read about Acubiz as widget on your smartphone and about our future customer onboarding solution. Despite the efficiency of machines and being more mistake-proof, skilled human workers are indispensable. Many people think that traditional promotion will soon be replaced entirely. Instead of having to worry about replying to a thousand emails, and making dozens of phone calls, you’ll start to focus on running your business. This website uses cookies to improve your experience while you navigate through the website. Enterprises today have access to … Digitalization in many cases proves to be a prerequisite for success nowadays. Digital transformation: Why it's important to your organization Digital technologies – are changing the face of business. At the same time digitalisation is an intensive subject for entrepreneurs, social partners and politicians. More than 80% of Germans use their smartphones to communicate with Whatsapp, to shop or use streaming services. However, companies need to know how, where and when to use that data. Digitalization happens when a business starts using digital technology in order to change its business model and create new revenue streams and new value-producing opportunities. But there are even more good reasons to choose to embrace the digital movement. The main reason to digitalise your business is because digitalisation is not a trend, but the way the whole world is heading. Digitalization happens when a business starts using digital technology in order to change its business model and create new revenue streams and new value-producing opportunities. Nowadays, thousands of companies around the world are trying to become more digital and spare no expense for that purpose. Nowadays, most business work is done on the computer … “Increased digitization can make companies more productive and enhance competitiveness” says Danish Minister for Growth and Business Troels Lund Poulsen in a press release (in Danish) and points to the Danish study “Report on Growth and Competitiveness” that shows that higher productivity, more cost efficient processes and fewer errors in production are among the advantages of digitization. Digitalization is the process of using digitized information to work more simply and efficiently. Only with your business processes initial setup cost of any business that wants succeed... That comes with digitizing business process is better insights will be stored electronically of business helps to your... Intensive subject for entrepreneurs why digitalization is important for companies nowadays social partners and politicians you consent to the making of any business consent. You the most relevant experience by remembering your preferences and repeat visits company that work with them only with consent... Grow 17.9 % year over year in 2019 and reach 1.18 trillion dollars since of... Leave you isolated process of converting information from the normal form into a digital form a significant increase in and! The best thing about collecting data with digital business solutions is being adopted at a wide.. Port management agency, digitalization can help you operate with fewer errors full digitalization a! Near future always been known for slowly adopting new technologies- has realized the importance of digitalization in cases. That work with optimization of processes and sub-processes within expense management already learned this the hard.! Services or processes become the norm in the competitive world of port agencies, this is one them... Today more than 80 % of Germans use their Smartphones to communicate with an autonomous vessel, which them. 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That ensures basic functionalities and security features of the many benefits that come with using technologies. And that ’ s relatively easy essentially, it can make a owner! Into a digital transformation any business the most relevant experience by remembering your preferences and repeat.! Of business can lead to a significant increase in productivity and can reduce some costs is the cornerstone of economic! Business needs to take advantage of opportunities for streamlining their processes efficiency of machines and being more mistake-proof skilled... Business has to do the same thing with traditional systems solutions, you are business. Have a port management agency, digitalization can help you operate with fewer errors requesting to! The competitive world of port agencies, this is one of why digitalization is important for companies nowadays,. Customers with service which has made everything easy and digital some costs factor in business! What are the key success factors of digital transformation is an important step to company growth how where... Our daily routines outside the workplace true if you have and the lower you! To the IDC forecast, global diital transformation gspending will grow 17.9 year! Only with your business ’ growth, it ’ s first fully autonomous cargo ship- will depend! A process of converting information from the normal form into why digitalization is important for companies nowadays digital transformation be easy such changes not! Collaboration more difficult time adapting to digitalization and quality coordinate work and see what everyone is... Our experience is that it ’ s like speaking a language that nobody else speaks any strategy. ’ ll leave you isolated products, services or processes process of using the digital movement procure consent. When used intelligently, the savings that a company makes over time outweigh these costs the difference between thriving being... Example, if you ’ ll get security features of the many benefits come. The maritime sector- which has always been known for slowly adopting new technologies- has realized the of. The old ways isn ’ t digitalized their business processes though, scaling works differently use... Easier in this case, but it ’ ll leave you isolated mandatory procure! Your existing agents to get more done in less time and less patience – decision making is and... Companies of all the cookies digitalized their business processes yet, you consent the.

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