The Growth of Digitization and Its Impact on the Business World
Running a business is not easy. Be it start-ups or established businesses, every business owner faces challenges due to frequently changing consumer demands and technological advancements. This is where digitization comes into the picture. Digitization is the initial step in the process of digital transformation – and the impact of digital transformation on business performance has been profound.
The digitization of business processes and operations has not just helped business owners to address their challenges but it has also helped them reach their target audience easily, advertise and market their product or service quickly, and above all, it has helped them offer a near-perfect user experience.
Today, almost every business is digitized, and we can confidently say that we are no longer in the transitional phase. In the post-pandemic world, digitization has become the biggest priority, as there has been a surge in the number of customers who have embraced online channels. Many companies have started experimenting with hybrid work models or have adopted a work-from-home option.
What Is Business Digitization?
In its most basic form, digitization is the process of converting analog data into digital form so that it can be easily understood by any electronic device, including computer systems. To be more specific, it is a process of converting information like text, images, or audio into binary code.
The idea or concept of converting information to digital form is not something new – the first image scanner designed to be paired with a digital computer was invented in 1957 – and it is implemented so that information can be processed, stored, and transmitted through digital networks.
However, in a modern sense, when we talk about the “digitization of business processes,” we’re not just talking about eliminating paper. We’re talking about creating a more digital, more tech-powered workplace. Digitization helps companies adopt a new style of work, allowing employees to access information from mobile devices and collaborate remotely from the comfort of their homes.
The Incredible Benefits of Digitization in Business
From employees who get a better work/life balance to managers and owners who see a jump in productivity, many have been amazed by the incredible benefits of digitization in business. Here are some reasons why you need to start thinking of digitization as an effective growth strategy for your business.
#1. Digitization Saves You Time and Money
Digitization is a cost-effective process, as it helps you cut down on several expenses. Adopting a fully remote workforce, for instance, allows you to manage your tasks and operations from the comfort of your home, helping you save money that otherwise you would have had to spend on rent for hiring office space.
This also gives you the option of outsourcing your work to agencies or freelancers. In this case, you only need to pay a fixed amount to them, unlike an in-house team where you will have to cover benefits like insurance on top of their monthly wages. Established agencies have experience working with various clients, so their team of experts will be able to complete the tasks rapidly. Adopting a digital workplace can be instrumental in saving you precious time.
#2. Digitization Helps You Implement Your Business Operations More Efficiently
To efficiently execute business operations, you should be able to access business documents without any hassle – wherever you are. As a business owner, you should try to innovate your document collection practices. Digitization helps you categorize business reports, plans, accounting files, employment agreements, non-disclosure agreements, and more in highly efficient ways.
Information is wealth – a vital resource for any organization. By analyzing your data, you will be able to determine what’s working for your business and what’s not. This will allow you to fix the issues that are affecting your sales.
As part of the digitization process, your business information will usually be stored in the cloud. Cloud-based technology ensures the safe storage of your files and documents. These files and documents can be accessed by your team members from any place, at any time. You can decide who can access the files by setting and modifying access permission whenever you want.
You can also be assured that your data will never be lost, as cloud technology ensures that the backup of your files and documents is always available.
#3. Digitization Helps You Reach Out to Mobile Users
Almost 51 percent of online shoppers worldwide currently use their smartphones to purchase products online at least once a week. As a business owner or marketer, your aim should be to target the majority of online shoppers by selling your products or services directly to them through a mobile website or app.
Digitization helps you develop an app that brings value to your users, thereby improving brand awareness and creating a loyal audience. Starting business digitization without adapting to mobile users is like trying to start a vehicle without its key. Unlike laptops or PCs, people carry their smartphones almost everywhere.
Today, people are using their phones for browsing – and shopping – more than ever before. You need to capitalize on this and develop an app or mobile website that complements your product or service. You should find ways to engage mobile users. While optimizing your website for mobile users or creating your mobile app, you should make sure that your page or app is not just responsive but also easy to navigate on all devices.
#4. Digitization Allows You To Take Distribution, Branding, and Promotion Into Your Own Hands
Digitization allows business owners to set up their own online retail channel with ease, without any need for a physical store or dependence on some third party. Having a great website or app allows you to handle orders efficiently and offer your product or service to a wider audience.
All you need is some storage space to keep your products to get started. You can start selling your products in your online store for a certain period of time and once your brand has gained good recognition, you can consider brick-and-mortar – if you even need to, at that point.
Along with distribution, digitization also lets you do branding and promotion yourself through content marketing. Do not create content with the sole aim of selling your products or services. People are too smart to understand that and will ultimately lose interest in your brand. You need to craft content that is focused on the interests and pain points of your target audience. You can then share the content through blogs, social media platforms, and so on.
#5. Digitization Provides a Better User Experience and Customer Service
Developments in business analytics and data science have helped businesses to learn more about their target audience and marketplace, letting them align their business strategy to suit their customers’ needs. Digitization allows business owners to collect and process more in-depth information.
When business owners and marketers are provided with the right information, they are able to improve the quality of their products and services. They are able to understand their audience better, helping them take the necessary steps to improve overall customer experience.
Digitization also helps you provide great customer service. Chatbots are turning out to be an effective option to answer your customers’ basic questions and direct them to the right department. Digitization makes the customer support system faster and more convenient for your customers, thereby creating a good impression of your brand.
#6. Digitization Improves Data Security
Today, we are witnessing increasingly common data breaches and hacks. Digitization plays a crucial role in securing and protecting the personal and important business and customer data that your organization collects, stores, and processes.
Privacy policies are becoming increasingly essential and digitization helps you protect critical and proprietary data. Remember, any instance of a data breach, hack, or compromise can create a negative impression of your brand, thereby impacting its reputation, sales, and operations.
In today’s competitive landscape, it is important for businesses to adapt in order to grow and sustain themselves in the marketplace. Businesses need digital business transformation which can be achieved through digitization. This will ensure that your business survives and thrives, outdoing your competitors.
Get rid of your traditional way of doing business and adopt digitization to succeed in this rapidly evolving world. Business digitization is no longer an option today – it is a must for your business to achieve the desired goals in this new digital era.