Digitization is the process of converting the information available into digital format. This step makes information easier to preserve, access, and share. Thanks to digitalization, companies across industries are racing to migrate “analog” approaches to customers, products, services, and operating models to an always-on,either, information-rich, real-time marketplace. For this reason, some leaders are redesigning their capabilities and operating models to take full advantage of digital technologies and keep pace with the consumer. In doing so, these companies ensure not only continued relevance, but also superior returns.
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The digitalization of business
This phenomenon does not affect large businesses as well as small businesses. Companies usually put their maximum effort into doing their job and, if possible, expanding. Normally, they are so immersed in these tasks that they often forget that external experts can accelerate their expansion. This would greatly facilitate their work and the passage to the digital field. Either by passivity, or even by being directly reluctant to it, they do not consider the digitalization of companies and the advantages that technology can bring. In this way, there are multiple businesses that have not yet taken this step.
Today, everything a small business would need to make this transition can be found very cheaply and simply. Many businesses believe that typing can cost them a fortune or that it requires a lot of experience, but the reality is very different. These are some of the advantages that arise from using a digital strategy:
- Improvement and greater ease when making reports and analyses.
- Better business management.
- Better management of suppliers.
- Improved customer management.
- More lead generation and better follow-up.
- Improved employee and payroll management.
- Improved cash flow through payment management.
- Inventory management and monitoring.
- Greater customer reach and marketing.
- Saving time and accelerating business expansion.
- Run ads and campaigns in search engines and social networks.
Analysis and digitalization of companies
Digitalization, along with the explosion of big data, was hailed as a new dawn in marketing ROI, as CMO Embraced the science of data analytics. However, the much-anticipated revolution has not occurred completely, since it has been carried out gradually on the one hand, while on the other, it has not yet been fully adapted.
Despite knowing that data and sophisticated analytical capabilities can positively transform the ROI of marketing, many organizations have not yet found a way to exploit that potential.
In some cases, the relative ease of measurement of digital channels, compared to more traditional media, is leading companies to change their marketing strategy, as well as go digital. Ad spend is diversifying over time as new methods of advertising and measurement evolve, allowing brands to more effectively target certain consumer segments at the right time and channel.
What is the difference between digitalization and digital transformation?
You have to know the differences that arise from both concepts. If digitalization is also about changing business operations, business models, and even revenue streams and new business opportunities, what’s the difference between digital transformation and digitalization?
Digital transformation, as it is known today, is broader than digitalization as a way to move into digital business. Much more effort, means and knowledge are required to realize this. This means hiring more specialized personnel, as well as more time and, consequently, more economic efforts.
However, digital transformation must be defined as an enterprise-wide phenomenon. While digitization is basically migrating data from analog to digital, for example passing data from a filing cabinet to a database, digital transformation encompasses this plus then using that data to for example create a virtual store.